Montauk Renewables, Inc. Fundamental Analysis (NASDAQ: MNTK)
Montauk Renewables, Inc. Fundamental Analysis (NASDAQ: MNTK)
Montauk Renewables, Inc. (NASDAQ: MNTK) shows weak financial fundamentals with a PE ratio of 34.03, profit margin of 4.19%, and ROE of 3.01%. The company generates $0.2B in annual revenue with weak year-over-year growth of 0.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MNTK's fundamental strength across five key dimensions:
Efficiency Score
WeakMNTK struggles to generate sufficient returns from assets.
Valuation Score
ModerateMNTK shows balanced valuation metrics.
Growth Score
WeakMNTK faces weak or negative growth trends.
Financial Health Score
ModerateMNTK shows balanced financial health with some risks.
Profitability Score
WeakMNTK struggles to sustain strong margins.
Key Financial Metrics
Is MNTK Expensive or Cheap?
P/E Ratio
MNTK trades at 34.03 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MNTK's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Montauk Renewables, Inc. at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.33 times EBITDA. This is generally considered low.
How Well Does MNTK Make Money?
Net Profit Margin
For every $100 in sales, Montauk Renewables, Inc. keeps $4.19 as profit after all expenses.
Operating Margin
Core operations generate 1.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.01 in profit for every $100 of shareholder equity.
ROA
Montauk Renewables, Inc. generates $1.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Montauk Renewables, Inc. produces operating cash flow of $43.16M, showing steady but balanced cash generation.
Free Cash Flow
Montauk Renewables, Inc. generates weak or negative free cash flow of $-82.85M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.58 in free cash annually.
FCF Yield
MNTK converts -30.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How MNTK Stacks Against Its Sector Peers
| Metric | MNTK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.03 | 29.88 | Worse (Expensive) |
| ROE | 3.01% | 1106.00% | Weak |
| Net Margin | 4.19% | -24767.00% (disorted) | Weak |
| Debt/Equity | 0.59 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 0.62 | 21.64 | Weak Liquidity |
| ROA | 1.68% | -1320894.00% (disorted) | Weak |
MNTK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Montauk Renewables, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.65%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-62.25%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
5.11%
Industry Style: Cyclical, Value, Infrastructure
Growing