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PureCycle Technologies (PCT)
NASDAQ:PCT
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PureCycle Technologies
(NASDAQ:PCT)
38Underperform
Positive Factors
Commercialization
First major product commercialization announcement could be a share price rally catalyst.
Market Opportunity
Significant commercial opportunity in the fiber, film, and injection molding markets is beginning to take shape.
Technology
PureCycle's unique technology allows it to produce near-virgin quality polypropylene cost effectively, which can be used in high value applications.
Negative Factors
Financial Performance
The GAAP net loss was significantly higher than estimates and consensus forecasts.
Revenue
PureCycle did not generate any revenue this quarter, which was below estimates.
PureCycle Technologies (PCT) vs. S&P 500 (SPY)
Market Cap
$1.18B
Dividend YieldN/A
Average Volume (3M)2.72M
Price to Earnings (P/E)―
Beta (1Y)2.18
Revenue GrowthN/A
EPS Growth-180.10%
CountryUS
Employees157
SectorIndustrials
Sector Strength77
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)0.05
Shares Outstanding179,412,170
10 Day Avg. Volume2,771,084
30 Day Avg. Volume2,715,945
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.76
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside128.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
PureCycle Technologies Business Overview & Revenue Model
Company DescriptionPureCycle Technologies, Inc. produces recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled resin. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.
How the Company Makes MoneyPureCycle Technologies generates revenue by selling ultra-pure recycled polypropylene resin to manufacturers and companies seeking sustainable materials for their products. Key revenue streams include long-term contracts with major corporations and partnerships with companies looking to incorporate recycled materials into their supply chains. Additionally, PureCycle benefits from licensing its proprietary recycling technology to other facilities, expanding its market reach and potential income sources. The company's earnings are bolstered by the growing demand for environmentally friendly materials, as businesses and consumers increasingly prioritize sustainability.
PureCycle Technologies Financial Statement Overview
Summary
PureCycle Technologies faces critical financial challenges, with no revenue generation, mounting losses, and negative cash flows. Although the debt position has improved, the company lacks profitability and operational sustainability, presenting significant risks to stakeholders.Income Statement
PureCycle Technologies has consistently reported zero revenue over the years, indicating a lack of sales and market penetration. The company has faced increasing net losses, with the latest net income at -$289 million, suggesting significant operational challenges and poor profitability. There is no revenue growth or profitability margin to assess, reflecting a struggling position in its industry.10
Very Negative
Balance Sheet
The company's debt-to-equity ratio has improved from 2.43 in 2020 to 0.37 in 2024, indicating better leverage management. However, the equity ratio has decreased over time, with the latest equity ratio at 22.61%, reflecting vulnerability in its financial structure. The decreasing total assets and stockholders' equity suggest a deteriorating asset base and financial strength.25
Negative
Cash Flow
Cash flow statements highlight negative operating and free cash flows, indicating a lack of self-sustaining operations and capital expenditure reliance without adequate financing inflows. The free cash flow has consistently been negative, with an increasing trend in cash outflows. This persistent cash burn is a significant risk factor.15
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | -18.86M | -26.56M | -10.55M | -8.60M | EBIT |
| 0.00 | -113.90M | -75.48M | -69.37M | -48.89M | EBITDA |
| 0.00 | -97.97M | -79.54M | -67.30M | -46.99M | Net Income Common Stockholders |
| -289.14M | -101.72M | -87.39M | -84.36M | -64.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.68M | 121.64M | 162.48M | 200.78M | 64.49M | Total Assets |
| 798.38M | 1.04B | 861.34M | 664.68M | 404.13M | Total Debt |
| 67.60M | 543.80M | 250.13M | 232.51M | 262.27M | Net Debt |
| 51.91M | 470.39M | 186.24M | 199.09M | 197.78M | Total Liabilities |
| 617.94M | 619.14M | 350.45M | 283.15M | 296.23M | Stockholders Equity |
| 180.45M | 420.24M | 510.88M | 381.54M | 107.90M |
| Cash Flow | Free Cash Flow | |||
| -200.41M | -248.81M | -352.67M | -191.90M | -47.76M | Operating Cash Flow |
| -144.83M | -94.91M | -65.48M | -54.51M | -17.95M | Investing Cash Flow |
| -7.01M | -102.10M | -218.39M | -305.57M | -29.81M | Financing Cash Flow |
| -109.17M | 272.00M | 247.53M | 293.37M | 378.19M |
PureCycle Technologies Technical Analysis
Negative
6.56
Price Trends
7.27
Negative
8.63
Negative
9.00
Negative
Market Momentum
-0.13
Negative
46.72
Neutral
28.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCT, the sentiment is Negative. The current price of 6.56 is above the 20-day moving average (MA) of 6.46, below the 50-day MA of 7.27, and below the 200-day MA of 9.00, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 28.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCT.
PureCycle Technologies Risk Analysis
PureCycle Technologies disclosed 31 risk factors in its most recent earnings report. PureCycle Technologies 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
PureCycle Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $896.86M | 19.64 | 18.34% | ― | 8.89% | 278.44% | |
72 Outperform | $814.77M | 37.23 | 10.73% | ― | 12.93% | 7.08% | |
64 Neutral | $4.25B | 11.69 | 5.23% | 249.83% | 4.04% | -9.46% | |
62 Neutral | $179.41M | ― | -0.76% | ― | 14.33% | 85.35% | |
50 Neutral | $29.05M | ― | -4.54% | ― | -7.19% | -24.85% | |
39 Underperform | $42.29M | ― | ― | ― | ― | ||
38 Underperform | $1.18B | ― | -96.27% | ― | ― | -180.10% |
* Industrials Sector Average
Performance Comparison
PCT
PureCycle Technologies
6.56
1.68
34.43%
ARQ
Arq Inc
3.68
-3.92
-51.58%
CECO
Ceco Environmental
25.42
0.80
3.25%
ERII
Energy Recovery
15.04
1.14
8.20%
FTEK
Fuel Tech
0.95
-0.36
-27.48%
SCWO
374Water
0.30
-1.15
-79.31%
PureCycle Technologies Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements such as the first reported revenues and operational improvements, alongside progress in customer trials and product line introductions. However, challenges remain with inventory management and cash burn rates. The overall sentiment reflects a company making positive strides with some financial management challenges to address.Q1-2025 Updates
Positive Updates
First Reported Revenues
The first quarter of 2025 marked the first reported revenues in the company's history, indicating a significant milestone for PureCycle Technologies.
Operational Improvements
Onstream time improved significantly, achieving almost 90% uptime in April compared to 25%-30% the previous year, demonstrating substantial operational progress.
Customer Trials and Sales Pipeline
Engaged in over 30 trials, with 24 in industrial phase, representing over 300 million pounds of potential product sales, showing a notable increase from Q4.
Progress in Film Market
Successful tests with Bruckner suggest potential for PureCycle’s film blend to act as a drop-in replacement for virgin materials in BOPP film applications.
Introduction of PureFive Product Lines
Launch of PureFive Ultra and PureFive Choice product lines, expanding customer options and applications in film, fiber, and automotive sectors.
Negative Updates
Inventory Management Challenges
Holding approximately 14 million pounds of inventory, indicating potential challenges in aligning production with immediate sales demand.
High Cash Burn Rate
Continued high operational and corporate spend, with $37 million for the quarter, raising concerns about cash flow management.
Company Guidance
During the first quarter of 2025, PureCycle Technologies reported its first-ever revenues, marking a significant milestone for the company. The company highlighted its operational improvements, specifically achieving an onstream time of about 90% in April, which is a notable increase from the previous year's 25-30% range. PureCycle is engaged in over 30 trials with 24 progressing to the industrial stage, representing over 300 million pounds of potential product sales. The company also introduced two product lines, PureFive Ultra and PureFive Choice, to cater to diverse customer needs and is seeing strong demand across multiple end markets. The success in trials, particularly with Bruckner for BOPP film, is seen as a potential game-changer for the industry. Financially, PureCycle ended the quarter with $37.5 million in cash, including $22.5 million of unrestricted cash, and raised nearly $55 million through various transactions. The company aims to achieve breakeven at Ironton by Q3 2025 and is actively planning for future capacity expansions with improved technology and cost efficiencies.PureCycle Technologies Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
PureCycle Technologies Reports Progress in Operations and Facilities
Positive
Feb 27, 2025
In a corporate update for the fourth quarter and fiscal year ending December 31, 2024, PureCycle Technologies announced significant progress in its operations, including improvements at its Ironton Facility and the successful launch of the Denver, PA sorting facility. The company has made strides in commercializing its PureFive™ resin, with successful trials and sales to major companies such as Drake Extrusion Inc. and Churchill Container. These developments highlight PureCycle’s potential for growth in various industries, including consumer goods and automotive, as it continues to enhance production capacity and product quality.
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.