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Montauk Renewables (MNTK)
NASDAQ:MNTK
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Montauk Renewables
(NASDAQ:MNTK)
60Neutral
Montauk Renewables (MNTK) vs. S&P 500 (SPY)
Market Cap
$297.69M
Dividend YieldN/A
Average Volume (3M)261.66K
Price to Earnings (P/E)32.5
Beta (1Y)1.75
Revenue Growth0.48%
EPS Growth-35.01%
CountryUS
Employees166
SectorUtilities
Sector Strength81
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.07
Shares Outstanding142,434,500
10 Day Avg. Volume354,255
30 Day Avg. Volume261,664
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)N/A
Price to Sales (P/S)1.77
Price to Cash Flow (P/CF)107.20
P/FCF Ratio107.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside35.14% Upside
Rating ConsensusHold
Number of Analyst Covering2
Montauk Renewables Business Overview & Revenue Model
Company DescriptionMontauk Renewables, Inc., a renewable energy company, engages in recovery and processing of biogas from landfills and other non-fossil fuel sources. It operates in two segments, Renewable Natural Gas and Renewable Electricity Generation. The company develops, owns, and operates renewable natural gas (RNG) projects that capture methane and prevents it from being released into the atmosphere by converting it into either RNG or electrical power for the electrical grid. Its customers for RNG and renewable identification numbers (RIN) include long-term owner-operators of landfills and livestock farms, local utilities, and refiners in the natural gas and refining sectors. The company was founded in 1980 and is headquartered in Pittsburgh, Pennsylvania.
How the Company Makes MoneyMontauk Renewables makes money primarily through the production and sale of renewable natural gas (RNG). The company captures methane from landfills and agricultural waste, processes it into RNG, and then sells it to utilities and other customers as a substitute for conventional natural gas. Key revenue streams include long-term purchase agreements with utilities and other end-users, as well as the generation and sale of environmental credits, such as Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits. These credits are sold to companies that need to comply with regulatory requirements for renewable energy usage. Strategic partnerships with waste management companies and municipalities also play a significant role in securing feedstock and expanding project portfolios, thereby contributing to the company's earnings.
Montauk Renewables Financial Statement Overview
Summary
Montauk Renewables exhibits strengths in operational efficiency and financial stability, but faces challenges with revenue volatility and free cash flow deficits. The company's low leverage and solid cash flow generation provide a stable foundation, yet managing capital expenditures and sustaining revenue growth are critical for future performance.Income Statement
Montauk Renewables shows a volatile revenue trend with a sharp decline in 2024, offsetting previous growth. Gross profit margins are unavailable, but EBIT and EBITDA margins improved in 2024, indicating operational efficiency. The net profit margin is positive but has decreased from prior years, suggesting some profitability challenges.65
Positive
Balance Sheet
The balance sheet is strong with a low Debt-to-Equity ratio, indicating low leverage and financial stability. ROE is positive but has fluctuated over the years, reflecting varying profitability. The equity ratio shows a high level of equity financing, which is healthy for long-term sustainability.75
Positive
Cash Flow
Operating cash flow is robust, consistently covering net income. However, free cash flow is negative in the latest period due to high capital expenditures, which could impact liquidity. The company shows a strong capacity to generate operating cash, but free cash flow trends need monitoring.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 194.85M | 61.00K | 174.90M | 205.56M | 148.13M | 100.38M | Gross Profit |
| 102.37M | 0.00 | 80.28M | 104.13M | 69.97M | 38.64M | EBIT |
| 34.20M | 16.12M | 23.64M | 44.57M | 4.75M | -390.00K | EBITDA |
| 57.29M | 40.97M | 45.12M | 65.73M | 25.43M | 25.06M | Net Income Common Stockholders |
| 22.98M | 9.73M | 14.95M | 35.19M | -4.53M | 4.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 9.79M | 45.62M | 73.81M | 105.18M | 53.27M | 20.99M | Total Assets |
| 243.61M | 349.01M | 350.24M | 332.32M | 286.48M | 253.36M | Total Debt |
| 67.35M | 19.15M | 68.09M | 76.22M | 79.53M | 66.36M | Net Debt |
| 57.56M | -26.47M | -5.72M | -28.95M | 26.26M | 45.37M | Total Liabilities |
| 89.36M | 91.60M | 100.00M | 105.22M | 104.19M | 93.73M | Stockholders Equity |
| 154.26M | 257.42M | 250.24M | 227.09M | 182.29M | 159.62M |
| Cash Flow | Free Cash Flow | ||||
| -6.48M | -18.53M | -22.04M | 58.79M | 32.89M | 11.04M | Operating Cash Flow |
| 64.54M | 43.80M | 41.05M | 81.07M | 42.88M | 28.68M | Investing Cash Flow |
| -71.81M | -62.19M | -63.09M | -20.79M | -19.47M | -15.99M | Financing Cash Flow |
| -11.03M | -9.84M | -9.33M | -8.28M | 8.65M | -1.50M |
Montauk Renewables Technical Analysis
Negative
2.22
Price Trends
3.48
Negative
3.89
Negative
4.53
Negative
Market Momentum
-0.40
Negative
36.19
Neutral
20.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNTK, the sentiment is Negative. The current price of 2.22 is below the 20-day moving average (MA) of 2.41, below the 50-day MA of 3.48, and below the 200-day MA of 4.53, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 20.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNTK.
Montauk Renewables Risk Analysis
Montauk Renewables disclosed 48 risk factors in its most recent earnings report. Montauk Renewables reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Montauk Renewables Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $145.82B | 21.02 | 14.24% | 2.98% | 26.91% | -6.43% | |
66 Neutral | $634.70M | 11.31 | 5.92% | ― | 28.76% | -9.56% | |
65 Neutral | $12.17B | 16.15 | 5.32% | 4.37% | 5.50% | -9.06% | |
60 Neutral | $297.69M | 32.50 | 3.83% | ― | 0.48% | -35.01% | |
59 Neutral | $4.53B | ― | -5.49% | ― | 10.53% | 90.76% | |
49 Neutral | $346.59M | ― | -11.54% | ― | -2.19% | 16.69% | |
43 Neutral | $1.31B | ― | -90.88% | ― | -29.45% | -10.79% |
* Utilities Sector Average
Performance Comparison
MNTK
Montauk Renewables
2.22
-2.11
-48.73%
AMRC
Ameresco
12.02
-11.47
-48.83%
CLNE
Clean Energy Fuels
1.57
-0.92
-36.95%
NEE
NextEra Energy
70.92
10.08
16.57%
PLUG
Plug Power
1.32
-1.91
-59.13%
BE
Bloom Energy
21.24
9.53
81.38%
Montauk Renewables Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -22.11% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Montauk's strategic growth initiatives and successful RIN sales, but also outlined significant challenges in profitability, market volatility, and project delays. The sentiment is cautiously optimistic with concerns about operational and market uncertainties.Highlights
Successful RIN Sales
Montauk Renewables sold 100% of its 2024 D3 RINs, with a 21% increase in average realized RIN price from $2.71 in 2023 to $3.28 in 2024.
Feedstock Diversification Strategy
Montauk continues to expand its feedstock diversification, with a significant increase in Pico digestion capacity and a new swine waste energy project in North Carolina.
Commissioning of New Projects
The Pico facility delivered a production increase of over 70% versus 2023, and the second facility at the Apex site is expected to be commissioned in Q2 2025.
Revenue Stability
Total revenues in 2024 were $175.7 million, slightly up from $174.9 million in 2023, despite a volatile market.
Lowlights
Revenue and Profitability Challenges
Operating profit in 2024 was $16.1 million, a decrease of 31.8% from $23.6 million in 2023. Net income also declined by 34.9%.
RIN Market Volatility
The D3 RIN market showed significant price volatility, and Montauk held a higher balance of D3 RINs at the end of the year due to muted purchasing activity.
Increased Operating Expenses
Operating and maintenance expenses for RNG facilities increased by 11.5% to $53.4 million in 2024.
Indefinite Project Delays
The Blue Granite project faced indefinite delays due to RNG interconnection issues, impacting capital spend and project timelines.
Company Guidance
During the 2025 earnings call for Montauk Renewables, several key metrics and guidance for the fiscal year 2025 were provided. Montauk expects its renewable natural gas (RNG) production volumes to range between 5.8 million and 6 million MMBtu, with corresponding revenues anticipated between $150 million and $170 million. Renewable electricity production is projected to be between 178,000 and 186,000 megawatt hours, generating revenues between $17 million and $18 million. Montauk also discussed its strategy to diversify feedstock and product offerings, including the commissioning of several projects such as a swine waste energy project in North Carolina and a renewable natural gas facility in Tulsa, Oklahoma. The company's 2024 financial results showed total revenues of $175.7 million, and an adjusted EBITDA of $42.6 million. The average realized RIN price for 2024 was $3.28, marking a 21% increase from 2023, while Montauk transferred approximately 9.9 million RINs from the 2024 compliance year at an average price of $2.45. The company plans to continue focusing on long-term viability and diversification amidst ongoing market volatility and regulatory changes.Montauk Renewables Corporate Events
Executive/Board Changes
Montauk Renewables Board Restructures with Director Resignation
Neutral
Feb 14, 2025
On February 14, 2025, Montauk Renewables announced that Michael Jacobson resigned from its Board of Directors, and the board size was reduced from seven to six members. Yunis Shaik, an existing board member, was appointed to the Audit Committee and deemed independent by NASDAQ standards, indicating a smooth transition and adherence to governance standards.
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.