Investment Thesis
Clean Energy Technologies exhibits severe financial distress with negative profitability across all metrics, substantial operating losses exceeding revenue, and severely impaired cash generation. The company is burning cash at an alarming rate with negative free cash flow of -$6.2M against only $1.8M in revenue, indicating an unsustainable business model that cannot fund operations from core activities.
Strengths
- Gross margin of 63% suggests reasonable unit economics on revenue generated
- Debt-to-equity ratio of 0.40x indicates moderate leverage relative to equity base
- Positive quick ratio of 1.14x provides minimal short-term liquidity cushion
Risks
- Operating losses of -$2.2M far exceed revenue of $1.8M, indicating inability to cover operating costs
- Negative operating cash flow of -$6.2M with only $826.8K cash available creates imminent solvency risk
- Net margin of -195.5% and ROE of -49.6% demonstrate severe destruction of shareholder value
- Negative interest coverage of -5.2x indicates inability to service debt obligations from operations
- Zero insider Form 4 filings in 90 days suggests lack of management confidence in company direction
Key Metrics to Watch
- Operating cash flow trajectory and path to positive cash generation
- Monthly cash burn rate relative to remaining cash reserves
- Revenue growth and gross profit expansion to achieve operating breakeven
Financial Metrics
Revenue
1.8M
Net Income
-3.5M
EPS (Diluted)
$-0.93
Free Cash Flow
-6.2M
Total Assets
14.8M
Cash
826.8K
Profitability Ratios
Gross Margin
63.0%
Operating Margin
-120.2%
Net Margin
-195.5%
ROE
-49.6%
ROA
-23.8%
FCF Margin
-345.4%
Balance Sheet & Liquidity
Current Ratio
1.20x
Quick Ratio
1.14x
Debt/Equity
0.40x
Debt/Assets
52.1%
Interest Coverage
-5.20x
Long-term Debt
2.8M
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: 2026-03-22T04:56:10.124941 |
Data as of: 2025-09-30 |
Powered by Claude AI