Investment Thesis
Alternus Clean Energy exhibits severe financial distress with collapsing revenues (-96.9% YoY), negative stockholders' equity of -$21.1M indicating technical insolvency, and critically low liquidity (0.04x current ratio). The company's reported profitability metrics are artifacts of minimal revenue rather than operational health, and negative free cash flow combined with $28.7M long-term debt and only $10K cash represents an unsustainable financial position.
Strengths
- Positive operating cash flow of $1.4M indicates some underlying business activity
- Clean energy sector alignment with long-term market trends
- Operating income remains positive at $10.2M despite revenue collapse
Risks
- Negative stockholders' equity of -$21.1M indicates technical insolvency and impaired balance sheet
- Revenue collapsed 96.9% year-over-year, indicating severe business deterioration
- Critical liquidity crisis with current ratio of 0.04x and only $10K cash against $25.9M liabilities
- Long-term debt of $28.7M with minimal cash generation capacity creates refinancing risk
- Negative free cash flow (-$62.3K) indicates company cannot fund operations from operations
- Interest coverage ratio of 1.2x shows minimal debt service cushion
Key Metrics to Watch
- Quarterly revenue trends and path to stabilization
- Stockholders' equity recovery and balance sheet restructuring
- Cash position and burn rate relative to operating expenses
- Debt refinancing ability and covenant compliance
Financial Metrics
Revenue
311.0K
Net Income
5.1M
EPS (Diluted)
$19.10
Free Cash Flow
-62.3K
Total Assets
4.8M
Cash
10.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
3,281.0%
Net Margin
1,625.1%
ROE
N/A
ROA
105.2%
FCF Margin
-20.0%
Balance Sheet & Liquidity
Current Ratio
0.04x
Quick Ratio
0.04x
Debt/Equity
N/A
Debt/Assets
539.8%
Interest Coverage
1.23x
Long-term Debt
28.7M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-19T18:04:06.129892 |
Data as of: 2025-06-30 |
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