Montauk Renewables, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

WD-40 Co.

UFP Technologies, Inc.

CSW Industrials, Inc.

Olin Corp.

RPM International, Inc.

Axalta Coating Systems Ltd.

The Sherwin-Williams Co.

H.B. Fuller Co.

PPG Industries, Inc.

Montauk Renewables, Inc.

Chase Corp.

Why is Montauk Renewables, Inc. ?

Poor Management Efficiency with a low ROE of 7.02%

The company has been able to generate a Return on Equity (avg) of 7.02% signifying low profitability per unit of shareholders funds

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 46.66 MM
PRE-TAX PROFIT(Q) At USD -3.23 MM has Fallen at -205.28%
NET PROFIT(Q) At USD -5.11 MM has Fallen at -295.16%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -64.14%, its profits have fallen by -50.9%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.65% over the previous quarter and collectively hold 17.34% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -64.14% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Montauk Renewables, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Montauk Renewables, Inc.

-56.93%

-0.94

86.75%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.04%

EBIT Growth (5y)

43.21%

EBIT to Interest (avg)

4.42

Debt to EBITDA (avg)

0.81

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.59

Tax Ratio

18.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

17.34%

ROCE (avg)

10.14%

ROE (avg)

7.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.13

EV to EBIT

17.69

EV to EBITDA

7.31

EV to Capital Employed

1.12

EV to Sales

1.71

PEG Ratio

Dividend Yield

ROCE (Latest)

6.34%

ROE (Latest)

4.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 46.66 MM

PRE-TAX PROFIT(Q)

At USD -3.23 MM has Fallen at -205.28%

NET PROFIT(Q)

At USD -5.11 MM has Fallen at -295.16%

ROCE(HY)

Lowest at 1.04%

RAW MATERIAL COST(Y)

Grown by 17.72% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 18.6 %

Here's what is working for Montauk Renewables, Inc.

Depreciation

Highest at USD 7.03 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Montauk Renewables, Inc.

Pre-Tax Profit

At USD -3.23 MM has Fallen at -205.28%

over average net sales of the previous four periods of USD 3.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -5.11 MM has Fallen at -295.16%

over average net sales of the previous four periods of USD 2.62 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 46.66 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 18.6 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 17.72% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales