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LanzaTech Global (LNZA)
NASDAQ:LNZA
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LanzaTech Global
(NASDAQ:LNZA)
47Neutral
Positive Factors
Cash management
LNZA shored up liquidity with $40MM convertible notes with a $1.5/sh convertible rate.
Partnership strategy
LNZA is expanding its strategy to partnering with capital providers to get projects to FID, a useful shift following limited project sanctions this year.
Revenue guidance
LNZA guided 4Q24 revenue to ~$70MM, bringing FY24 revenues to $108MM, above the prior guide of $90-105MM.
Negative Factors
Gross margins
Gross margins fell from 68% in 2Q24 to 18% in 3Q24, with 2Q benefiting from revenue related to LanzaJet equity recognition.
Project progression
LNZA has only moved 1 project from advanced engineering to construction this year.
R&D expense
R&D expense was $4MM above TD Cowen forecast.
LanzaTech Global (LNZA) vs. S&P 500 (SPY)
Market Cap
$47.86M
Dividend YieldN/A
Average Volume (3M)3.64M
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth-20.82%
EPS Growth25.63%
CountryUS
Employees383
SectorIndustrials
Sector Strength64
IndustryWaste Management
Share Statistics
EPS (TTM)-0.14
Shares Outstanding197,782,060
10 Day Avg. Volume2,842,719
30 Day Avg. Volume3,640,994
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.35
Price to Cash Flow (P/CF)-0.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.50Price Target Upside650.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
LanzaTech Global Business Overview & Revenue Model
Company DescriptionLanzaTech Global (LNZA) is an innovative biotechnology company specializing in carbon recycling technology. Operating at the intersection of energy, biotechnology, and sustainability sectors, LanzaTech develops and employs proprietary processes to convert industrial waste gases into valuable chemicals and fuels. The company's core technology utilizes microbial fermentation to transform waste emissions into ethanol and other chemical products, contributing to a reduced carbon footprint and fostering a circular economy.
How the Company Makes MoneyLanzaTech Global generates revenue primarily through licensing its proprietary carbon recycling technology to industrial partners and governments seeking to reduce their carbon emissions. The company also engages in joint ventures and partnerships with manufacturers in sectors such as steel, refining, and petrochemicals to implement its technology on-site, thereby earning a share of the resulting product sales. Additional revenue streams include the sale of carbon-recycled products, such as ethanol, and potential government grants or incentives aimed at promoting sustainable and environmentally friendly technologies.
LanzaTech Global Financial Statement Overview
Summary
LanzaTech Global faces significant financial challenges with declining revenues and persistent losses. The company has a high leverage ratio, indicating potential financial risk, and negative free cash flow. However, there are slight improvements in gross profit margin and strategic investments.Income Statement
LanzaTech Global shows a declining revenue trend with total revenue dropping from $62.63M in 2023 to $58.03M in the TTM (Trailing-Twelve-Months). Gross profit margin improved slightly to 36.5% TTM, but the company remains unprofitable with a net loss of $129.41M and a negative net profit margin of -223.1% TTM. EBIT and EBITDA margins remain negative, indicating ongoing operational challenges.45
Neutral
Balance Sheet
The company's balance sheet shows significant leverage with a debt-to-equity ratio of 2.13 in the TTM, suggesting potential financial risk. However, the equity ratio is 6.3%, reflecting some equity buffer. Stockholders' equity decreased significantly, indicating potential financial strain. High total liabilities relative to equity could pose a risk if profitability doesn't improve.60
Neutral
Cash Flow
Free cash flow remains negative at -$101.12M TTM, with no positive trend in sight. Operating cash flow to net income ratio is negative, indicating cash flow challenges. However, investing cash flow of $212.88M TTM suggests some strategic investments, possibly funded by financing activities.40
Negative
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 49.59M | 62.63M | 37.34M | 25.46M | 18.35M | Gross Profit |
| 2.81M | 12.20M | 9.06M | 10.23M | 6.76M | EBIT |
| -108.93M | -106.38M | -75.60M | -51.02M | -39.70M | EBITDA |
| -102.61M | -98.19M | -70.94M | -47.21M | -36.55M | Net Income Common Stockholders |
| -137.73M | -134.10M | -115.03M | -83.45M | -69.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 55.87M | 120.74M | 6.67K | 128.32M | 60.49M | Total Assets |
| 174.68M | 241.62M | 152.49M | 193.01M | 118.98M | Total Debt |
| 30.78M | 19.94M | 7.41M | 5.33M | 10.59M | Net Debt |
| -12.72M | -55.64M | 7.41M | -122.98M | -49.91M | Total Liabilities |
| 161.24M | 127.15M | 9.71M | 67.30M | 35.79M | Stockholders Equity |
| 13.45M | 114.47M | 142.78M | 125.71M | 83.19M |
| Cash Flow | Free Cash Flow | |||
| -94.37M | -105.85M | -11.08M | -48.34M | -46.38M | Operating Cash Flow |
| -89.06M | -97.30M | -345.73K | -42.59M | -39.27M | Investing Cash Flow |
| 28.35M | -57.91M | 9.00K | -5.75M | -6.59M | Financing Cash Flow |
| 30.21M | 148.19M | 50.55M | 116.02M | 44.73M |
LanzaTech Global Technical Analysis
Negative
0.20
Price Trends
0.48
Negative
0.85
Negative
1.25
Negative
Market Momentum
-0.09
Negative
37.26
Neutral
16.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNZA, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.48, and below the 200-day MA of 1.25, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LNZA.
LanzaTech Global Risk Analysis
LanzaTech Global disclosed 86 risk factors in its most recent earnings report. LanzaTech Global reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LanzaTech Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $10.14M | 7.69 | 3.53% | ― | 4.07% | ― | |
63 Neutral | $4.26B | 11.28 | 5.43% | 215.24% | 4.12% | -8.73% | |
47 Neutral | $47.86M | ― | -182.17% | ― | -20.82% | 25.63% | |
43 Neutral | $49.87M | ― | -25.01% | ― | 0.05% | -99.92% | |
39 Underperform | $153.14M | ― | -38.46% | ― | -34.12% | -3803.38% | |
36 Underperform | $12.35M | ― | -116.08% | ― | -100.00% | 24.94% |
* Industrials Sector Average
Performance Comparison
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LanzaTech Global
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LanzaTech Global Earnings Call Summary
Earnings Call Date: Apr 15, 2025 | % Change Since: -23.08% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
While the company faced challenges with missing revenue targets and increased operating expenses, it highlighted strong future potential with new projects, partnerships, and expansions into new markets like nutritional protein. The overall sentiment reflects a strategic pivot towards capturing more value and ensuring long-term growth despite current hurdles.Highlights
Strong Position for 2025
LanzaTech is well-positioned for 2025 with significant project developments like Project Drake and collaborations with global partners. The company expects substantial growth in ethanol feedstock for sustainable aviation fuel (SAF) projects.
New Revenue Streams and Partnerships
LanzaTech is evolving to capture more value by developing its own projects and forming partnerships with capital partners like Brookfield Asset Management, which committed $500 million for projects.
Ethanol Offtake Agreement with ArcelorMittal
A new agreement with ArcelorMittal includes a short-term contract with $6 million annual revenue potential and a 5-year contract generating $10-20 million per year, enhancing access to ethanol volumes.
Expansion into Nutritional Protein Market
LanzaTech announced its ability to produce single-cell protein, targeting the $1 trillion alternative protein market, with applications in animal feed, pet food, and human nutrition.
Lowlights
Revenue Misses Target
Third quarter revenue was $9.9 million, about $7 million below target, primarily due to the delay in a LanzaJet sublicense event and depressed ethanol pricing.
Challenging Market Dynamics
Ethanol prices were depressed in key markets, particularly in China, impacting CarbonSmart revenue, which despite doubling quarter-over-quarter, was still below expectations.
Higher Operating Expenses
Operating expenses increased by approximately $5 million year-over-year to $34.8 million, driven by project development costs that are expected to be recouped later.
Company Guidance
In the third quarter earnings call for LanzaTech Global, Inc., several key metrics and guidance updates were discussed. The company reported a third quarter revenue of $9.9 million, which was approximately $7 million below their target, largely due to an anticipated LanzaJet sublicense event not materializing and lower-than-expected CarbonSmart revenue despite it more than doubling quarter-over-quarter to $2.2 million. The company is evolving its business model to accelerate revenues and profitability by developing their own projects and partnering with capital investors like Brookfield Asset Management, which committed $500 million. LanzaTech received the first $5 million in fees from Project Drake, a 30 million gallon per year EU-based ethanol-to-sustainable aviation fuel (SAF) project, and announced a new ethanol offtake agreement with ArcelorMittal with potential revenue of $6 million annually in the short term and $10-20 million per year over five years. Despite headwinds, the company is optimistic about achieving greater economics and expects these initiatives to bolster their financial performance in the fourth quarter and beyond.LanzaTech Global Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
LanzaTech Global Expands Board Amid Strategic Delays
Neutral
Mar 26, 2025
On March 20, 2025, LanzaTech Global expanded its Board of Directors by appointing Jill Frizzley as a Class III director, who will serve on the Strategic Committee. This appointment is part of LanzaTech’s broader strategic measures, which have impacted its management resources, leading to a delay in filing its 2024 Annual Report and postponing its earnings disclosures and conference call. The company anticipates filing within the extension period and is focused on deploying its technology globally while improving its cost structure.
Business Operations and StrategyFinancial Disclosures
LanzaTech Global Announces Strategic Transition to Profitability
Positive
Mar 4, 2025
On March 4, 2025, LanzaTech Global announced strategic actions to transition from an innovation hub to a profitable enterprise, including the evaluation of partnership opportunities for its LanzaTech Nutritional Protein and the spin-off of its synthetic biology platform, LanzaX. The company aims to streamline operations, reduce annual cash operating expenses by approximately $30 million, and focus on high-impact commercial projects, such as waste-based ethanol-to-SAF facilities in the UK and EU. Additionally, LanzaTech rescheduled its fourth quarter and full-year 2024 earnings call to March 31, 2025, to align with its Annual Report filing.
Private Placements and FinancingBusiness Operations and Strategy
LanzaTech Global Secures $60M Loan for Carbon Capture
Positive
Feb 20, 2025
LanzaTech Global, Inc. and Brookfield Asset Management Inc. have entered into a Loan Agreement to further develop and construct facilities using LanzaTech’s carbon capture technology. The agreement, effective February 14, 2025, replaces a previous equity agreement and outlines a $60 million loan from Brookfield to LanzaTech, with specific repayment terms and restrictions on LanzaTech’s activities. This collaboration underscores the strong partnership between the two companies and aims to advance LanzaTech’s technological capabilities in the carbon capture industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.