Verde Clean Fuels (VGAS) AI Stock Analysis

• Market Cap: $123.39M
• Dividend Yield: N/A
• Average Volume (3M): 12.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: N/A
• EPS Growth: -32.38%
• Country: US
• Employees: 6
• Sector: Utilities
• Sector Strength: 84
• Industry: Renewable Energy Producers
• EPS (TTM): -0.46
• Shares Outstanding: 9,549,621
• 10 Day Avg. Volume: 11,822
• 30 Day Avg. Volume: 12,724
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -19.20
• 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

Verde Clean Fuels scores low due to significant financial difficulties, including zero revenue and operational losses. While technical analysis indicates a bearish trend, recent corporate events provide some optimism with a major investment aimed at improving financial stability and strategic direction. However, the company's valuation and lack of profitability remain serious concerns.

Verde Clean Fuels Business Overview & Revenue Model

Company Description

Verde Clean Fuels (VGAS) is a company focused on the production and commercialization of sustainable fuels. Operating within the clean energy sector, the company is dedicated to reducing carbon emissions by providing innovative fuel solutions derived from renewable resources. Verde Clean Fuels aims to contribute to the global transition towards cleaner energy by offering products that are environmentally friendly and economically viable.

How the Company Makes Money

Verde Clean Fuels makes money through the sale of its sustainable fuel products to various industries, including transportation and energy. The company generates revenue by leveraging advanced technologies to produce fuels that meet regulatory standards and appeal to environmentally conscious consumers and businesses. Key revenue streams include contracts with transportation companies, partnerships with government agencies promoting clean energy initiatives, and collaborations with other energy firms seeking to incorporate green solutions into their operations. These strategic partnerships and market demands for cleaner energy solutions drive the company's earnings.

Verde Clean Fuels Financial Statement Overview

Summary

Verde Clean Fuels is facing substantial financial difficulties, marked by zero revenue generation, continuous operational losses, and negative cash flows. The balance sheet reveals financial instability, with negative equity and low asset levels. Urgent strategic changes are required to improve financial health.

Income Statement

The income statement reveals significant challenges for Verde Clean Fuels. The company has consistently reported zero revenue over multiple periods, indicating an inability to generate sales. Net income figures are negative, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, showing operational inefficiencies and lack of profitability. There is no growth trajectory in terms of revenue, which is a major concern for future financial health.

Balance Sheet

The balance sheet shows a weak financial position. The company has minimal debt, resulting in a low debt-to-equity ratio; however, this is overshadowed by negative stockholders' equity, indicating financial instability. The equity ratio is negative, further highlighting the company's vulnerability and potential solvency issues. The total assets are low, and the company's financial structure lacks robustness.

Cash Flow

Verde Clean Fuels reports negative free cash flow, indicating a struggle to generate cash from operations. The operating cash flow is negative, and the ratio of operating cash flow to net income reveals inefficiencies in converting income into cash. Previous financing activities have not led to improved operational cash flows, reflecting poor cash management and sustainability concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	247.88K	0.00	0.00
	Gross Profit
-959.59K	-544.47K	0.00	0.00	0.00
	EBIT
-11.18M	10.55M	2.72M	-12.93M	-3.52M
	EBITDA
-9.59M	-9.55M	2.97M	-474.58K	-3.49M
	Net Income Common Stockholders
-3.10M	-2.74M	17.82M	-12.93M	-3.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.88M	28.78M	463.48K	87.64K	1.05M
	Total Assets
31.93M	31.93M	6.36M	2.23M	3.25M
	Total Debt
939.15K	939.15K	334.34K	8.19K	44.96K
	Net Debt
-27.94M	-27.84M	-129.14K	-79.45K	-1.01M
	Total Liabilities
3.10M	3.10M	5.25M	9.02M	422.35K
	Stockholders Equity
11.10M	11.10M	-11.67M	-14.39M	-1.47M
Cash Flow		Free Cash Flow
-13.23M	-9.17M	-3.28M	-2.63M	-6.53K
	Operating Cash Flow
-11.18M	-9.12M	-3.28M	-2.63M	-2.21K
	Investing Cash Flow
-506.63K	-58.59K	-4.41K	-290.10K	-4.32K
	Financing Cash Flow
0.00	37.52M	3.66M	1.95M	13.33K

Verde Clean Fuels Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VGAS, the sentiment is Negative. The current price of 3.85 is below the 20-day moving average (MA) of 3.92, below the 50-day MA of 3.88, and below the 200-day MA of 4.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VGAS.

Verde Clean Fuels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$11.91B	15.60	6.55%	4.41%	7.00%	0.55%
GEVO	64 Neutral	$289.68M	―	-14.78%	―	16.59%	-7.74%
BLDP	49 Neutral	$520.99M	―	-33.54%	―	20.29%	-106.22%
FCEL	45 Neutral	$138.70M	―	-17.27%	―	-9.13%	1.93%
PLUG	43 Neutral	$1.58B	―	-90.88%	―	-29.45%	-10.79%
AMTX	39 Underperform	$85.94M	―	37.38%	―	59.51%	-80.53%
VGAS	33 Underperform	$123.39M	―	-28.79%	―	―	-32.38%

Verde Clean Fuels Corporate Events

Verde Clean Fuels Expands Board with Major Investment

On January 29, 2025, Verde Clean Fuels announced the completion of a $50 million equity investment by Cottonmouth Ventures, a subsidiary of Diamondback Energy, making Cottonmouth the second largest shareholder in Verde with a total investment of $70 million. This investment will support Verde’s plans to develop natural gas-to-gasoline production plants using its STG+® technology. Alongside the investment, Verde expanded its Board to include Johnny Dossey as a director, representing Cottonmouth. The move is expected to enhance operational efficiency, support sustainability goals, and advance the construction of commercial production plants, potentially benefiting stakeholders by providing a high-value outlet for natural gas and contributing to lower carbon fuel production.

Verde Clean Fuels Gains Major Investment Boost

Verde Clean Fuels, Inc. announced a $50 million equity investment from Cottonmouth Ventures, LLC, a subsidiary of Diamondback Energy, Inc. This investment will see the purchase of 12.5 million shares of Verde’s Class A common stock, with the proceeds intended for developing natural gas-to-gasoline plants in the Permian Basin and general corporate purposes. Upon closing, Cottonmouth will become the second largest shareholder of Verde, enhancing Verde’s board with a Cottonmouth-designated director and observer. The investment signifies confidence in Verde’s technology to address economic and environmental issues related to flaring and stranded gas in the Permian Basin. This strategic partnership with Diamondback Energy aims to advance sustainable operational practices in the oilfield, supporting the clean energy transition.