Clear Blue Technologies International, Inc. (CBLU) AI Stock Analysis

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TSE:CBLU Dividends

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Clear Blue Technologies International, Inc.

(CBLU)

40Underperform

Clear Blue Technologies is in a challenging financial position with consistent losses, high leverage, and negative cash flow. While there are ongoing efforts to improve cash flow and reduce costs, significant risks remain due to revenue declines and financial uncertainties. The stock's technical indicators and valuation also reflect financial distress, contributing to the overall cautious score.

Clear Blue Technologies International, Inc. (CBLU) vs. S&P 500 (SPY)

Market Cap

C$6.18M

Dividend YieldN/A

Average Volume (3M)14.65K

Price to Earnings (P/E)―

Beta (1Y)0.16

Revenue Growth24.29%

EPS Growth0.53%

CountryCA

EmployeesN/A

SectorTechnology

Sector Strength44

IndustrySolar

Share Statistics

EPS (TTM)-0.23

Shares Outstanding77,213,070

10 Day Avg. Volume26,843

30 Day Avg. Volume14,651

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.91

Price to Cash Flow (P/CF)-3.30

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 TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Clear Blue Technologies International, Inc. Business Overview & Revenue Model

Company DescriptionClear Blue Technologies International, Inc. (CBLU) is a leading provider of smart off-grid power solutions. The company operates in the clean technology sector, focusing on sustainable and cost-effective energy solutions. Its core products include solar and hybrid power systems, which are designed for remote and off-grid applications such as street lighting, telecommunications, and other critical infrastructure.

How the Company Makes MoneyClear Blue Technologies generates revenue primarily through the sale and installation of its solar and hybrid power systems. The company also offers ongoing maintenance and support services, which provide a recurring revenue stream. Additionally, Clear Blue Technologies may partner with governments, municipalities, and private sector clients to deploy its technology in larger, infrastructure-scale projects, further contributing to its earnings. By leveraging its proprietary technology, the company aims to deliver reliable and efficient energy solutions that meet the growing demand for sustainable power.

Clear Blue Technologies International, Inc. Financial Statement Overview

Summary

Clear Blue Technologies is facing significant financial difficulties, with ongoing net losses, high leverage, and negative cash flow. The company shows volatile revenue growth and high financial risk due to negative stockholders' equity and significant liabilities.

Income Statement

Negative

Clear Blue Technologies shows a challenging income statement with consistent net losses over the years, indicating a negative net profit margin. Revenue growth is volatile, with recent declines. The negative EBIT and EBITDA margins further highlight profitability challenges.

Balance Sheet

Negative

The balance sheet reflects financial instability with negative stockholders' equity, indicating high leverage. The debt-to-equity ratio is not meaningful due to negative equity. The company faces significant financial risk with high total liabilities compared to assets.

Cash Flow

Negative

Cash flow analysis indicates negative free cash flow, suggesting operational challenges in generating cash. Operating cash flow to net income ratio is unfavorable, pointing to inefficiencies. Free cash flow growth remains negative, although financing activities have helped maintain liquidity.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
4.31M	5.40M	2.64M	8.15M	4.02M	3.97M
	Gross Profit
182.42K	2.47M	988.52K	2.26M	1.27M	891.16K
	EBIT
-2.73M	-3.38M	-3.46M	-2.67M	-3.29M	-4.57M
	EBITDA
-1.88M	-1.35M	-3.76M	-2.79M	-3.21M	-4.86M
	Net Income Common Stockholders
-4.70M	-3.89M	-6.55M	-3.41M	-4.30M	-5.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
767.12K	534.45K	853.33K	2.12M	3.51M	61.72K
	Total Assets
4.49M	12.02M	10.87M	11.17M	8.40M	5.31M
	Total Debt
594.26K	11.54M	9.97M	8.25M	4.23M	2.26M
	Net Debt
-172.86K	11.01M	9.12M	6.13M	726.06K	2.20M
	Total Liabilities
2.54M	16.56M	13.65M	11.38M	7.15M	5.54M
	Stockholders Equity
1.95M	-4.54M	-2.78M	-215.24K	1.25M	-231.16K
Cash Flow		Free Cash Flow
-4.60M	-5.17M	-5.86M	-6.84M	-3.18M	-4.63M
	Operating Cash Flow
-1.32M	-2.06M	-3.45M	-3.90M	-3.15M	-4.61M
	Investing Cash Flow
-1.48M	-859.51K	-1.80M	-2.86M	23.56K	-19.88K
	Financing Cash Flow
1.93M	2.60M	3.98M	5.37M	6.57M	3.92M

Clear Blue Technologies International, Inc. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.08

Price Trends

50DMA

0.12

Negative

100DMA

0.13

Negative

200DMA

0.21

Negative

Market Momentum

MACD

-0.01

Positive

RSI

20.56

Positive

STOCH

20.00

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CBLU, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.12, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 20.56 is Positive, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CBLU.

Clear Blue Technologies International, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSI	76 Outperform	C$895.18M	7.38	26.63%	4.61%	12.14%	26.17%
BLN	62 Neutral	C$548.54M	―	-14.10%	―	31.68%	67.90%
Sector *	58 Neutral	$9.99B	10.12	-6.46%	3.10%	7.47%	-11.60%
BYD	58 Neutral	$4.41B	131.32	2.96%	0.29%	5.76%	-71.36%
GRN	57 Neutral	C$13.33M	―	-5.60%	―	-10.37%	95.22%
CBLU	40 Underperform	C$6.18M	―	59.36%	―	24.29%	0.53%
NXO	22 Underperform	C$1.95M	―	17.92%	―	―	83.87%

* Technology Sector Average

Performance Comparison

TSE:CBLU

Clear Blue Technologies International, Inc.

0.08

-0.28

-77.78%

TSE:BYD

Boyd Group Services

204.96

-56.47

-21.60%

TSE:PSI

Pason Systems

11.27

-4.16

-26.96%

TSE:NXO

NexOptic Technology

0.01

-0.01

-50.00%

TSE:GRN

Greenlane Renewables Inc

0.08

0.00

0.00%

TSE:BLN

Blackline Safety

6.50

2.21

51.52%

Clear Blue Technologies International, Inc. Earnings Call Summary

Earnings Call Date: Nov 29, 2024 | % Change Since: -33.33% | Next Earnings Date: May 28, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong growth in the telecom vertical and improvements in gross profit margins, driven by integration of new products and cost reductions. However, significant challenges were noted, including a substantial revenue decline in Q3, cash flow constraints, and high inventory levels. Additionally, financial uncertainties related to delayed payments and shifts in payment terms pose ongoing challenges.

Highlights

Telecom Vertical Revenue Growth

The telecom vertical revenue increased by 110% in the trailing four quarters, reaching $3.4 million compared to $1.6 million previously, driven by the integration of eSite hardware product.

Gross Profit Margin Improvement

The company maintained gross margins of over 40-45%, with Q3 2024 and trailing four-quarter margins at 46% due to a change in sales mix and increased revenue from the integrated eSite-Micro systems.

Operational Cost Reductions

The company reduced operating expenses by downsizing its workforce by one-third and restructuring cloud expenses, saving approximately $600,000 annually.

New Partnership with Satellite Vendor

Announced a new partnership with a satellite vendor, expected to integrate Pico with every satellite modem shipped to business customers, providing a significant growth opportunity.

Lowlights

Significant Revenue Decline in Q3

Q3 2024 revenue was $369,297, down 84% from the previous quarter, primarily due to delays in customer orders and a focus on cash conservation.

Cash Flow Constraints

The company experienced cash flow constraints, leading to a shift from revenue generation to cash conservation and impacting shipment alignment with customer payments.

High Inventory Levels

The company has a large inventory on its balance sheet, nearly $4 million, due to historical supply chain issues and delayed shipments.

Challenges with SDTC Payments

Experienced a five-month delay in receiving a 2023 payment from SDTC, affecting operations and contributing to financial uncertainty.

Uncertainty in Payment Terms Impacting Competitiveness

Switching to prepaid payment terms may reduce competitiveness against companies offering longer terms, particularly against competitors like Huawei.

Company Guidance

During Clear Blue's Q3 2024 earnings call, the company provided guidance on addressing its financial challenges and strategic plans moving forward. The company reported a significant inventory of nearly $4 million on its balance sheet, contributing to a cash flow crunch. Clear Blue aims to become cash flow positive by reducing operational expenses, which included a one-third reduction in salaries and a $600,000 cut in annual software and cloud expenses. The company is also negotiating with stakeholders to convert some of its debt into equity, thereby improving its shareholder equity and reducing debt. Despite a challenging Q3 with revenue dropping by 84% to $369,297, Clear Blue projects a positive outlook for 2025, with plans to leverage a $1.3 million government grant and anticipated sales growth from new partnerships and product integrations. The company's gross margin for Q3 2024 stood at 46%, and they have adjusted their strategy to align shipments with payments, focusing on generating cash rather than just revenue.

Clear Blue Technologies International, Inc. Corporate Events

Clear Blue Technologies Adjusts Debt Settlement and Ownership Structure

Jan 9, 2025

Clear Blue Technologies International Inc. announced a correction regarding its recent shares for debt settlement and private placement. The company settled approximately $8.77 million of indebtedness by converting it into units, which included common shares and purchase warrants. As part of this transaction, BDC Capital Inc. converted $2.2 million into units, significantly increasing its ownership stake in Clear Blue from 3.93% to 16.88% on a non-diluted basis. This strategic move potentially strengthens BDC’s influence and interest in the company’s future developments.

Clear Blue Technologies Completes Shares for Debt and Private Placement Transactions

Jan 6, 2025

Clear Blue Technologies announced the completion of a shares for debt transaction and a private placement, settling approximately $8.77 million of debt into equity and raising approximately $1.575 million. This strategic financial restructuring enhances the company’s equity position and supports its operational goals. BDC Capital, a subsidiary of the Business Development Bank of Canada, significantly increased its stake in Clear Blue through this transaction, which strengthens its influence and potential control over the company.

Clear Blue Technologies Restructures for Market Growth

Dec 27, 2024

Clear Blue Technologies International Inc. has announced a financial restructuring plan to strengthen its market position, involving debt conversion to equity, a private placement for additional capital, and a 6:1 share consolidation. These measures aim to allow the company to capitalize on opportunities in the North American and African markets after facing setbacks due to global challenges in recent years. The company is also implementing cost reductions to enhance operational efficiency.

Clear Blue Technologies Reports Mixed Financial Results

Nov 29, 2024

Clear Blue Technologies International Inc. reported a 24% increase in revenue on a trailing four-quarter basis, achieving $4.3 million, with gross profits rising by 49% to nearly $2 million. However, the company faced an 84% revenue decrease in Q3 2024 compared to the previous year, highlighting significant challenges alongside an increase in bookings by 28%.

Clear Blue and Eutelsat Enhance African Connectivity

Nov 12, 2024

Clear Blue Technologies has partnered with Eutelsat Group to enhance connectivity across Africa by integrating smart energy solutions with satellite platforms. This collaboration aims to provide reliable, sustainable broadband services to remote communities, overcoming challenges posed by unstable electricity supplies.

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.