Cielo Waste Solutions (CMC) AI Stock Analysis

• Market Cap: C$6.47M
• Dividend Yield: N/A
• Average Volume (3M): 56.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: N/A
• EPS Growth: -66.57%
• Country: CA
• Employees: 22
• Sector: Energy
• Sector Strength: 44
• Industry: Waste Management
• EPS (TTM): -0.36
• Shares Outstanding: 117,686,800
• 10 Day Avg. Volume: 98,627
• 30 Day Avg. Volume: 56,933
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -10.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Cielo Waste Solutions is significantly challenged by its poor financial health, weak technical performance, and negative valuation metrics. The proposed board overhaul adds further uncertainty and potential instability. Overall, the stock faces substantial risks, and its prospects appear dim.

Cielo Waste Solutions Business Overview & Revenue Model

Company Description

Cielo Waste Solutions Corp. operates as a waste-to-fuel environmental technology company in Canada. It converts and transforms waste feedstocks, including organic material and wood derivative waste into fuel, such as diesel, naphtha, and kerosene. The company was formerly known as Cielo Gold Corp. and changed its name to Cielo Waste Solutions Corp. in August 2013. Cielo Waste Solutions Corp. was incorporated in 2011 and is headquartered in Calgary, Canada.

How the Company Makes Money

Cielo Waste Solutions generates revenue by converting waste materials into renewable fuels, which are then sold to various industries seeking sustainable energy solutions. The company utilizes its proprietary technology to process waste into high-value fuels such as diesel and naphtha. Key revenue streams include the sale of these biofuels and potentially licensing its technology to other waste management or energy companies. Strategic partnerships with waste producers and energy consumers, as well as government incentives for renewable energy production, significantly contribute to Cielo's earnings.

Cielo Waste Solutions Financial Statement Overview

Summary

Cielo Waste Solutions faces severe financial difficulties with no revenue growth, persistent losses, and negative cash flows. While leverage appears manageable, the lack of profitability and cash generation poses significant risks to financial stability.

Income Statement

The company has consistently reported zero revenue with negative gross and net profit margins, indicating significant financial challenges. EBIT and EBITDA margins are also negative, further highlighting the lack of profitability.

Balance Sheet

The debt-to-equity ratio is relatively low, indicating manageable leverage. However, the declining stockholders' equity and low equity ratio suggest potential financial instability. The company also shows a significant drop in total assets over the periods.

Cash Flow

Negative free cash flow and operating cash flow indicate poor cash generation capabilities. The negative operating cash flow to net income ratio and free cash flow to net income ratio suggest inefficiencies in converting earnings to cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	4.20K	3.00K
	Gross Profit
-4.12M	-3.41M	-634.00K	-442.61K	0.00	0.00
	EBIT
-7.00M	-7.72M	-6.16M	-15.46M	-5.26M	-4.14M
	EBITDA
-14.81M	-8.05M	-33.13M	-13.36M	-34.47M	-3.46M
	Net Income Common Stockholders
-18.03M	-36.18M	-14.45M	-14.44M	-39.71M	-4.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
-116.00K	376.00K	1.33M	2.68M	17.18M	81.61K
	Total Assets
13.94M	54.95M	29.37M	53.53M	45.19M	17.68M
	Total Debt
2.12M	4.19M	10.04M	14.84M	1.74M	10.46M
	Net Debt
2.23M	3.81M	8.88M	12.16M	-15.43M	10.38M
	Total Liabilities
5.32M	13.71M	14.57M	19.93M	20.69M	14.91M
	Stockholders Equity
8.62M	41.24M	14.80M	33.60M	24.51M	2.77M
Cash Flow		Free Cash Flow
-4.63M	-5.97M	-8.97M	-35.96M	-7.69M	-8.45M
	Operating Cash Flow
-2.63M	-4.20M	-4.75M	-16.38M	-1.27M	-3.36M
	Investing Cash Flow
-1.30M	-1.49M	-5.06M	-19.64M	-6.12M	-5.09M
	Financing Cash Flow
3.93M	4.92M	8.31M	21.52M	24.49M	8.18M

Cielo Waste Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CMC, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 27.16 is Positive, neither overbought nor oversold. The STOCH value of 28.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CMC.

Cielo Waste Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRN	66 Neutral	C$13.33M	―	-5.60%	―	-10.37%	95.22%
ECO	58 Neutral	C$243.48M	―	-3.37%	―	48.80%	50.70%
Sector *	57 Neutral	$7.57B	4.34	-4.83%	6.50%	-0.19%	-64.60%
NPK	42 Neutral	C$27.91M	―	-33.12%	―	-42.96%	-110.04%
DYA	37 Underperform	C$80.81M	―	2492.91%	―	258.52%	-4.87%
CMC	17 Underperform	C$6.47M	―	-168.76%	―	―	-66.57%

Cielo Waste Solutions Corporate Events

Cielo Waste Solutions Faces Shareholder Requisition for Board Overhaul

Cielo Waste Solutions has received a shareholder meeting requisition from Expander Energy, its largest shareholder, to address significant changes in the company’s board of directors and governance structure. Expander seeks to replace the current board with its nominees and gain control of the company, attributing Cielo’s share price decline to the existing board. Cielo’s management, however, attributes the decline to broader market conditions and is committed to its turnaround strategy for long-term growth, emphasizing ongoing dialogue with shareholders and good governance.

Cielo Waste Solutions Shifts Focus to Green Hydrogen in British Columbia

Cielo Waste Solutions announced the relocation of its first planned waste-to-fuel facility from Alberta to British Columbia, shifting its production focus from Renewable Diesel to Green Hydrogen. This strategic move aligns with the company’s commitment to renewable energy and allows it to leverage financial incentives from the British Columbia Low Carbon Fuel Standard credit program. Additionally, Cielo has decided not to proceed with the acquisition of the Enhanced Gas to Liquids facility due to market uncertainties and regulatory challenges. The company remains focused on sustainable fuel production and is exploring new partnerships and funding opportunities. Cielo is also engaged in a dispute resolution process with Expander Energy regarding disagreements over a license agreement.

Cielo Waste Solutions Announces Share Issuance for Debt Settlement

Cielo Waste Solutions announced its intention to settle approximately $1.62 million in debt through the issuance of 15,451,545 common shares at $0.105 each, subject to TSX Venture Exchange approval. This move includes a transaction with an insider, classified as a related party transaction, and aims to improve the company’s financial standing. The company also corrected a previous error regarding the price of shares issued in earlier transactions, reinforcing its commitment to transparency.