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OPAL Fuels (OPAL)
NASDAQ:OPAL
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OPAL Fuels
(NASDAQ:OPAL)
46Neutral
OPAL Fuels (OPAL) vs. S&P 500 (SPY)
Market Cap
$254.06M
Dividend YieldN/A
Average Volume (3M)192.06K
Price to Earnings (P/E)68.9
Beta (1Y)1.45
Revenue Growth18.31%
EPS Growth-96.95%
CountryUS
Employees341
SectorUtilities
Sector Strength93
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.02
Shares Outstanding28,429,478
10 Day Avg. Volume270,581
30 Day Avg. Volume192,057
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.09
Price to Cash Flow (P/CF)73.60
P/FCF Ratio47.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.35Price Target Upside197.95% Upside
Rating ConsensusHold
Number of Analyst Covering4
OPAL Fuels Business Overview & Revenue Model
Company DescriptionOPAL Fuels Inc. engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company generates and sells renewable power to utilities. As of May 1, 2022, it owned and operated 24 biogas projects. The company was founded in 1998 and is based in White Plains, New York.
How the Company Makes MoneyOPAL Fuels generates revenue primarily through the production and sale of renewable natural gas (RNG). The company captures methane emissions from landfills and agricultural waste, processes it into RNG, and then sells it to various markets, including transportation and commercial sectors. Revenue is also generated through the sale of renewable electricity and environmental credits, such as Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits, which are earned through their RNG production and used by companies to meet regulatory compliance. Additionally, OPAL Fuels forms strategic partnerships with waste management companies and municipalities, further enhancing its ability to collect raw methane and expand its production capabilities, thereby increasing its revenue potential.
OPAL Fuels Financial Statement Overview
Summary
OPAL Fuels shows revenue growth but struggles with profitability and financial stability. The balance sheet presents significant risks with negative equity, while cash flows demonstrate heavy investment outflows. The company needs to address profitability and equity issues to stabilize its financial position.Income Statement
OPAL Fuels has demonstrated revenue growth over recent years, with Total Revenue increasing from $256.1M in 2023 to $299.9M in 2024. However, the company's Gross Profit Margin shifted to 100% in 2024 due to a reporting anomaly where Gross Profit equals Total Revenue, likely indicating missing cost data. The Net Profit Margin decreased significantly, indicating increased expenses or operational inefficiencies despite revenue growth. EBIT and EBITDA margins show inconsistency due to fluctuating EBIT figures, signaling potential operational challenges.56
Neutral
Balance Sheet
The balance sheet reveals significant concerns, notably a negative Stockholders' Equity, which has worsened from -$478.8M in 2023 to $0 in 2024. Total Debt has been reduced to $0 in 2024, improving the Debt-to-Equity ratio but primarily due to negative equity, which remains a critical risk. The Equity Ratio is also negative, reflecting significant financial instability and potential solvency issues.30
Negative
Cash Flow
OPAL Fuels' cash flow statements indicate persistent negative Free Cash Flow, worsening from -$75.6M in 2023 to -$94.2M in 2024. The Operating Cash Flow to Net Income ratio is positive, suggesting operational activities are generating cash, but substantial capital expenditures result in negative Free Cash Flow. This suggests the company is heavily investing, potentially in growth, but at the cost of short-term liquidity.42
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 299.97M | 256.11M | 235.53M | 166.12M | 117.71M | Gross Profit |
| 100.12M | 72.21M | 63.48M | 51.06M | 27.54M | EBIT |
| 21.22M | 7.04M | 9.51M | 11.03M | -3.37M | EBITDA |
| 40.95M | 152.89M | 53.13M | 21.68M | -12.19M | Net Income Common Stockholders |
| 11.03M | 29.95M | 3.39M | 31.91M | -29.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 24.31M | 48.22M | 105.37M | 39.31M | 12.82M | Total Assets |
| 881.08M | 754.61M | 644.86M | 380.84M | 169.46M | Total Debt |
| 310.56M | 210.61M | 179.65M | 229.10M | 100.78M | Net Debt |
| 286.25M | 172.26M | 139.26M | 189.79M | 87.96M | Total Liabilities |
| 416.05M | 297.12M | 267.04M | 285.89M | 139.00M | Stockholders Equity |
| -148.45M | -478.81M | -662.46M | 30.22M | -25.40M |
| Cash Flow | Free Cash Flow | |||
| -94.21M | -75.56M | -132.76M | -70.79M | -22.65M | Operating Cash Flow |
| 33.03M | 38.27M | -1.35M | 18.86M | 2.29M | Investing Cash Flow |
| -117.36M | -74.15M | -184.03M | -117.20M | -22.18M | Financing Cash Flow |
| 83.50M | 5.90M | 220.55M | 125.01M | 21.45M |
OPAL Fuels Technical Analysis
Negative
1.46
Price Trends
2.50
Negative
2.99
Negative
3.39
Negative
Market Momentum
-0.23
Negative
23.13
Positive
17.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPAL, the sentiment is Negative. The current price of 1.46 is below the 20-day moving average (MA) of 1.94, below the 50-day MA of 2.50, and below the 200-day MA of 3.39, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 23.13 is Positive, neither overbought nor oversold. The STOCH value of 17.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPAL.
OPAL Fuels Risk Analysis
OPAL Fuels disclosed 67 risk factors in its most recent earnings report. OPAL Fuels 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
OPAL Fuels Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $7.79B | 77.58 | 11.30% | ― | -41.92% | -76.24% | |
65 Neutral | $12.17B | 16.15 | 5.32% | 4.37% | 5.50% | -9.06% | |
60 Neutral | $2.20B | ― | 16.58% | ― | 8.99% | 63.84% | |
49 Neutral | $333.17M | ― | -11.54% | ― | -2.19% | 16.69% | |
46 Neutral | $254.06M | 68.87 | -8.53% | ― | 18.31% | -96.95% | |
40 Underperform | $81.05M | ― | 37.38% | ― | 43.34% | -56.81% | |
39 Underperform | $251.59M | ― | -15.02% | ― | -1.66% | -18.31% |
* Utilities Sector Average
Performance Comparison
OPAL
OPAL Fuels
1.46
-3.45
-70.26%
CLNE
Clean Energy Fuels
1.46
-1.02
-41.13%
ENPH
Enphase Energy
57.27
-57.97
-50.30%
GEVO
Gevo
1.03
0.26
33.77%
RNG
RingCentral
22.61
-10.36
-31.42%
AMTX
Aemetis
1.58
-3.67
-69.90%
OPAL Fuels Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -32.72% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in the fuel station service segment and RNG production, along with a positive outlook for 2025. However, challenges in meeting production guidance, decreased net income, and regulatory impacts on renewable power present notable hurdles.Highlights
Fuel Station Service Segment EBITDA Growth
The 2024 fuel station service segment EBITDA was $40.2 million, 76% higher versus 2023, and within the guidance set out for the segment last March.
RNG Fuel Production Increase
RNG fuel production for 2024 was 3.8 million MMBtus, up 41% versus 2023. Although slightly behind guidance, it demonstrates significant production growth.
Expansion of RNG Projects
OPAL Fuels brought online three large landfill RNG projects in 2024, totaling 3.8 million MMBtus of annual design capacity, increasing from two to eleven operating facilities since 2022.
2025 Growth Projections
2025 RNG production is expected to range from 5.0 to 5.4 million MMBtus, a 30% to 40% increase over 2024, with adjusted EBITDA expected to range from $90 million to $110 million.
Lowlights
RNG Production Shortfall
2024 RNG production was slightly behind the guidance of 4.0 million MMBtus, mainly due to longer ramp-up timelines at newly commissioned RNG facilities.
Decreased Revenue and Net Income
For the full year 2024, revenue and net income were $299.9 million and $14.3 million, respectively, compared to $256.1 million and $127 million in 2023, mainly due to a significant gain recognized in 2023.
Regulatory Challenges Impacting Renewable Power
Renewable Power adjusted EBITDA is experiencing about a $10 million decline in 2025 versus 2024 due to Europe no longer certifying US biogas for its regulatory programs.
Company Guidance
During the OPAL Fuels Fourth Quarter 2024 Earnings Call, the company provided guidance for 2025, including expectations for adjusted EBITDA to range between $90 million and $110 million, based on RNG production guidance of 5.0 to 5.4 million MMBtus, representing a 30% to 40% increase over 2024. The guidance assumes a D3 RIN price of $2.60 per RIN, which is approximately $0.50 per gallon below the 2024 realized price. A $0.10 shift in D3 RIN price is expected to impact 2025 adjusted EBITDA by approximately $5 to $6 million. The 2025 guidance excludes around $50 million of expected ITC sales, compared to approximately $9 million in 2024, which will contribute significantly to operating cash flow growth and earnings per share. Additionally, the company anticipates a $10 million decline in Renewable Power adjusted EBITDA for 2025 due to changes in European certification policies for US biogas. The fuel station services segment is expected to grow its adjusted EBITDA by 30% to 50% in 2025 versus 2024.OPAL Fuels Corporate Events
Financial Disclosures
OPAL Fuels to Announce Q4 and Full-Year 2024 Results
Neutral
Feb 28, 2025
On February 27, 2025, OPAL Fuels Inc. announced it will release its earnings results for the fourth quarter and full year ending December 31, 2024, after market close on March 13, 2025. The company will host an earnings conference call on March 14, 2025, at 11:00 AM Eastern Time, providing stakeholders with insights into its financial performance.
Executive/Board Changes
OPAL Fuels Appoints Kazi Hasan as New CFO
Positive
Feb 3, 2025
On February 3, 2025, OPAL Fuels Inc. announced the appointment of Kazi Hasan as the new Chief Financial Officer. Hasan, who brings over 25 years of experience in the energy sector, succeeds Scott Contino, who served as interim CFO. Hasan’s extensive background in financial and strategic leadership within the renewable energy and infrastructure space is expected to drive disciplined growth and value creation for OPAL Fuels. His appointment aims to strengthen the company’s market leadership and maximize shareholder value amid growing demand for scalable, economical, and lower carbon energy solutions.
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.