DeZwarteRidder schreef op 20 maart 2021 08:40:Avoid These 2 Overvalued Renewable Chemical Stocks
Gevo, Inc. (GEVO)
GEVO is a renewable fuels company that commercializes jet fuel, gasoline and diesel fuel that emit reduced greenhouse gasses. The company uses low-carbon renewable resource-based carbohydrates as raw materials and is developing renewable electricity and renewable natural gas for use in production processes.
GEVO’s total revenues have decreased 92.3% year-over-year to $531,000 in the fourth quarter ended December 31, 2020. This is because the company terminated its production of ethanol and distiller grains at its Luverne Facility in March 2020. The facility will remain closed until further notice. Also, its hydrocarbon revenue was affected because of decreased shipments of finished products from the company’s demonstration plant at its South Hampton Facility. Its loss from operations have increased 12.4% from the year-ago value to $7 million, due primarily to an increase in consulting and personnel costs, while its net loss has risen 164.9% to $18.05 million over that period.
In terms of its forward-12-month ev/Sales, the stock is currently trading at 319.71x, which is significantly higher than the industry average 2.88x. Also, in terms of price/sales, the stock is currently trading at 308.15x, significantly higher than the industry average 1.39x.
Analysts expect GEVO to report a loss per share of $0.03 in the current quarter (ending March 31, 2021). The company missed the Street’s EPS estimates in three out of the trailing four quarters. A consensus revenue estimate of $150,000 in the first quarter indicates a 96.1% decline year-over-year. The stock has lost 26.2% over the past month.GEVO’s POWR Ratings are consistent with this bleak outlook. The stock has an overall D rating, which equates to Sell in our proprietary rating system.
The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.GEVO has an F grade for Value and Stability, and a D for Quality. It is currently ranked #95 in the 98-stock Chemicals industry.
In total, we rate GEVO on eight different levels. Beyond what we’ve stated above, we have also given GEVO grades for Sentiment, Momentum and Growth. Get all GEVO’s ratings here.