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LanzaTech Global (LNZA)
NASDAQ:LNZA
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LanzaTech Global
(NASDAQ:LNZA)
48Neutral
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
$42.23M
Dividend YieldN/A
Average Volume (3M)1.75M
Price to Earnings (P/E)―
Beta (1Y)2.05
Revenue Growth37.60%
EPS Growth32.69%
CountryUS
Employees414
SectorIndustrials
Sector Strength66
IndustryWaste Management
Share Statistics
EPS (TTM)-0.66
Shares Outstanding197,782,060
10 Day Avg. Volume2,414,878
30 Day Avg. Volume1,749,301
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
$2.75Price Target Upside1209.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
LanzaTech Global Business Overview & Revenue Model
Company DescriptionLanzaTech Global (LNZA) is a biotechnology company that specializes in the development and commercialization of innovative carbon capture and utilization technologies. Operating within the renewable energy and sustainability sectors, LanzaTech focuses on converting waste carbon emissions into valuable products such as fuels and chemicals, thereby contributing to the reduction of greenhouse gases and promoting a circular carbon economy.
How the Company Makes MoneyLanzaTech makes money primarily through the licensing of its proprietary gas fermentation technology to industrial partners, enabling them to convert waste carbon emissions into useful products. The company also generates revenue by collaborating with major corporations in sectors such as steel production and refining, where it implements its technology to capture and transform emissions on-site. Additionally, LanzaTech may receive funds through government grants, research partnerships, and strategic alliances that support the development and deployment of its carbon recycling 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 | |||
| 58.02M | 62.63M | 37.34M | 25.46M | 18.35M | Gross Profit |
| 21.17M | 12.20M | 9.06M | 10.23M | 6.76M | EBIT |
| -100.56M | -106.38M | -75.60M | -51.02M | -39.70M | EBITDA |
| -96.10M | -98.19M | -70.94M | -47.21M | -36.55M | Net Income Common Stockholders |
| -129.41M | -134.10M | -115.03M | -83.45M | -69.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 121.44M | 120.74M | 6.67K | 128.32M | 60.49M | Total Assets |
| 241.62M | 241.62M | 152.49M | 193.01M | 118.98M | Total Debt |
| 19.94M | 19.94M | 7.41M | 5.33M | 10.59M | Net Debt |
| -56.34M | -55.64M | 7.41M | -122.98M | -49.91M | Total Liabilities |
| 127.15M | 127.15M | 9.71M | 67.30M | 35.79M | Stockholders Equity |
| 114.47M | 114.47M | 142.78M | 125.71M | 83.19M |
| Cash Flow | Free Cash Flow | |||
| -101.12M | -105.85M | -11.08M | -48.34M | -46.38M | Operating Cash Flow |
| -94.25M | -97.30M | -345.73K | -42.59M | -39.27M | Investing Cash Flow |
| 212.88M | -57.91M | 9.00K | -5.75M | -6.59M | Financing Cash Flow |
| -225.21M | 148.19M | 50.55M | 116.02M | 44.73M |
LanzaTech Global Technical Analysis
Negative
0.21
Price Trends
0.77
Negative
1.06
Negative
1.39
Negative
Market Momentum
-0.15
Positive
20.82
Positive
8.73
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 0.21 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.77, and below the 200-day MA of 1.39, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 20.82 is Positive, neither overbought nor oversold. The STOCH value of 8.73 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $8.06B | 13.61 | 3.91% | 3.11% | 3.80% | -14.06% | |
60 Neutral | $22.99B | 13.11 | 7.78% | 4.20% | -9.01% | -43.53% | |
58 Neutral | $307.28M | 213.04 | 0.51% | ― | -10.30% | -93.51% | |
52 Neutral | $162.48M | ― | -4.07% | ― | 2752.05% | 87.57% | |
48 Neutral | $42.23M | ― | -182.17% | ― | 37.60% | 32.69% | |
39 Underperform | $271.73M | ― | -15.02% | ― | -1.66% | -18.31% |
* Industrials Sector Average
Performance Comparison
LNZA
LanzaTech Global
0.21
-2.75
-92.91%
ADM
Archer Daniels Midland
47.87
-12.21
-20.32%
GEVO
Gevo
1.14
0.41
56.16%
BIOX
Bioceres Crop Solutions
4.90
-7.72
-61.17%
FULC
Fulcrum Therapeutics
3.01
-6.30
-67.67%
LanzaTech Global Earnings Call Summary
Earnings Call Date: Nov 8, 2024 | % Change Since: -88.65% | Next Earnings Date: Mar 31, 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 Strategy
LanzaTech Global Appoints Reyad Fezzani to Board
Positive
Jan 24, 2025
On January 23, 2024, LanzaTech Global announced the appointment of Reyad Fezzani to its Board of Directors, expanding the board from seven to eight members. Fezzani, with over 30 years of leadership in global energy and renewable innovation, is expected to provide critical insights as LanzaTech advances its carbon management technologies and scales its operations. His extensive experience will support LanzaTech’s efforts in Power-to-X projects and the expansion of its waste-to-SAF solution, CirculAir, which was launched in 2024. This strategic addition aligns with LanzaTech’s vision to enhance its impact across various industrial sectors and reinforces its commitment to sustainable growth and innovation.
Executive/Board ChangesBusiness Operations and Strategy
LanzaTech Global to Form LanzaX Joint Venture
Positive
Jan 22, 2025
On January 21, 2025, LanzaTech Global announced its intention to form LanzaX, a new business unit dedicated to its synthetic biology platform, and spin it out as a joint venture with Tharsis Capital. This strategic move aims to enhance the company’s focus on its biorefining operations, including Sustainable Aviation Fuels, while reducing costs and leveraging LanzaX’s capabilities to accelerate the development of new biochemical products. Additionally, LanzaTech appointed Justin Pugh as Interim Chief Financial Officer to drive cost reductions and align resources with their growth strategy.
Executive/Board ChangesBusiness Operations and Strategy
LanzaTech Global Announces Key Leadership Appointments
Neutral
Dec 16, 2024
LanzaTech Global has appointed Sushmita Koyanagi as Chief Accounting Officer, effective December 16, 2024, bringing her extensive experience in accounting and financial reporting to the firm. Meanwhile, George Dimitrov has been promoted to Senior Vice President, Finance and Business Operations for LanzaTech Nutritional Protein, as the company enhances its biorefining capabilities to capitalize on the burgeoning alternative protein market.
Business Operations and Strategy
LanzaTech Global CEO to Present at ChemIndix
Neutral
Nov 27, 2024
Dr. Jennifer Holmgren, CEO of LanzaTech Global, Inc., is set to present on “Enabling a Circular Carbon Economy” at ChemIndix in Saudi Arabia. The presentation highlights innovative approaches in chemistry aimed at transforming carbon utilization, attracting attention from those interested in sustainable industrial practices. However, the presentation details are not filed for legal liabilities under securities regulations.
Executive/Board ChangesBusiness Operations and Strategy
LanzaTech Global Strengthens Board with Thierry Pilenko
Positive
Nov 25, 2024
LanzaTech Global, a leader in carbon recycling, has bolstered its board by appointing Thierry Pilenko, a seasoned expert in energy and infrastructure, as it advances its carbon management technology. Pilenko’s four decades of experience are expected to enhance LanzaTech’s strategic growth and profitability, leveraging his track record in deploying large-scale projects. This move is seen as a vital step in LanzaTech’s mission to transform waste carbon into sustainable solutions, fostering a circular carbon economy.
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.