OPAL Fuels Inc. Fundamental Analysis (NASDAQ: OPAL)
OPAL Fuels Inc. (NASDAQ: OPAL) shows moderate financial fundamentals with a PE ratio of 17.53, profit margin of 4.22%, and ROE of 1.97%. The company generates $0.3B in annual revenue with strong year-over-year growth of 16.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OPAL's fundamental strength across five key dimensions:
Efficiency Score
WeakOPAL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOPAL trades at attractive valuation levels.
Growth Score
ModerateOPAL shows steady but slowing expansion.
Financial Health Score
ExcellentOPAL maintains a strong and stable balance sheet.
Profitability Score
WeakOPAL struggles to sustain strong margins.
Key Financial Metrics
Is OPAL Expensive or Cheap?
P/E Ratio
OPAL trades at 17.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OPAL's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values OPAL Fuels Inc. at 2.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.37 times EBITDA. This signals the market has high growth expectations.
How Well Does OPAL Make Money?
Net Profit Margin
For every $100 in sales, OPAL Fuels Inc. keeps $4.22 as profit after all expenses.
Operating Margin
Core operations generate 1.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.97 in profit for every $100 of shareholder equity.
ROA
OPAL Fuels Inc. generates $1.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
OPAL Fuels Inc. produces operating cash flow of $41.54M, showing steady but balanced cash generation.
Free Cash Flow
OPAL Fuels Inc. generates weak or negative free cash flow of $-44.35M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.57 in free cash annually.
FCF Yield
OPAL converts -74.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.97
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How OPAL Stacks Against Its Sector Peers
| Metric | OPAL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.53 | 20.26 | Better (Cheaper) |
| ROE | 197.01% | 1019.00% | Weak |
| Net Margin | 4.22% | -658.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 1.64 | Strong (Low Leverage) |
| Current Ratio | 1.82 | 1.70 | Neutral |
| ROA | 1.38% | 4578088.00% | Weak |
OPAL outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews OPAL Fuels Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
165.22%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
152.04%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
1327.63%
Industry Style: Defensive, Dividend, Income
High Growth