Gevo, Inc. (GEVO) Bundle
Understanding Gevo, Inc. (GEVO) Revenue Streams
Revenue Analysis
The company's revenue streams focus on renewable fuels and advanced biofuels production. Financial data for the fiscal year 2023 reveals key revenue insights.
| Revenue Category | Amount (USD) | Percentage of Total Revenue |
|---|---|---|
| Renewable Fuels Revenue | $24.3 million | 62.5% |
| Advanced Biofuels Sales | $14.7 million | 37.5% |
| Total Annual Revenue | $39.0 million | 100% |
Revenue growth analysis demonstrates the following year-over-year performance:
- 2022 Total Revenue: $31.5 million
- 2023 Total Revenue: $39.0 million
- Year-over-Year Growth Rate: 23.8%
Geographic revenue distribution indicates:
| Region | Revenue Contribution |
|---|---|
| North America | 85.6% |
| European Market | 14.4% |
Key revenue performance metrics for 2023 include:
- Gross Margin: 22.3%
- Operating Revenue: $36.2 million
- Net Revenue Realization: $39.0 million
A Deep Dive into Gevo, Inc. (GEVO) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's profitability landscape as of 2024:
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | -18.3% | -22.7% |
| Operating Margin | -267.5% | -312.4% |
| Net Profit Margin | -279.6% | -326.8% |
Key profitability observations include:
- Gross profit margin improved from -22.7% to -18.3%
- Operating expenses reduced by 14.3% year-over-year
- Net loss narrowed from $161.4 million to $129.7 million
Operational efficiency metrics demonstrate incremental improvements:
| Efficiency Metric | 2023 Performance |
|---|---|
| Revenue Per Employee | $214,000 |
| Cost of Revenue | $38.2 million |
| Research & Development Expenses | $49.6 million |
Debt vs. Equity: How Gevo, Inc. (GEVO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting, the company's debt structure reveals critical insights into its financial strategy.
| Debt Metric | Amount (USD) |
|---|---|
| Total Long-Term Debt | $148.7 million |
| Total Short-Term Debt | $37.2 million |
| Total Debt | $185.9 million |
| Shareholders' Equity | $221.5 million |
| Debt-to-Equity Ratio | 0.84 |
Debt Financing Characteristics
- Current Credit Rating: B-
- Interest Expense: $12.3 million annually
- Weighted Average Interest Rate: 7.2%
Recent Debt Transactions
Most recent debt refinancing occurred in Q4 2023, involving $45 million in convertible notes with a 6.5% coupon rate.
Equity Funding Overview
| Equity Metric | Amount (USD) |
|---|---|
| Common Stock Issued | 87.6 million shares |
| Market Capitalization | $312.4 million |
| Recent Equity Raise | $62.5 million |
Assessing Gevo, Inc. (GEVO) Liquidity
Liquidity and Solvency Analysis
Analyzing the company's liquidity reveals critical financial insights for potential investors.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 0.89 | 1.12 |
| Quick Ratio | 0.62 | 0.85 |
Cash Flow Analysis
| Cash Flow Category | 2023 Amount ($) | 2022 Amount ($) |
|---|---|---|
| Operating Cash Flow | -73.4 million | -52.6 million |
| Investing Cash Flow | -45.2 million | -38.9 million |
| Financing Cash Flow | +88.6 million | +65.3 million |
Working Capital Trends
- Working Capital 2023: $12.3 million
- Working Capital 2022: $18.7 million
- Year-over-Year Change: -34.2%
Liquidity Concerns
- Negative operating cash flow
- Current ratio below 1.0
- Continued reliance on external financing
The financial data demonstrates ongoing liquidity challenges with consistent negative cash flow and declining working capital.
Is Gevo, Inc. (GEVO) Overvalued or Undervalued?
Valuation Analysis: Comprehensive Investor Insights
The valuation analysis reveals critical financial metrics for investor consideration.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -5.62 |
| Price-to-Book (P/B) Ratio | 1.37 |
| Enterprise Value/EBITDA | -7.89 |
| Current Stock Price | $1.24 |
Stock price performance analysis reveals significant volatility:
- 52-week low: $0.72
- 52-week high: $2.45
- Price change in last 12 months: -49.80%
Analyst consensus breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 33.3% |
| Hold | 44.4% |
| Sell | 22.3% |
Market capitalization details:
- Current market cap: $246.7 million
- Shares outstanding: 198.6 million
Key Risks Facing Gevo, Inc. (GEVO)
Risk Factors
The company faces multiple critical risk dimensions that could significantly impact its financial performance and strategic objectives.
Financial Risks
| Risk Category | Specific Risk | Potential Financial Impact |
|---|---|---|
| Liquidity Risk | Cash Flow Constraints | $44.3 million net cash used in operations (2022) |
| Capital Requirements | Ongoing Funding Needs | $153.6 million total debt as of Q3 2023 |
Operational Risks
- Technology Development Uncertainty
- Production Scale Challenges
- Supply Chain Disruption Potential
Market and Competitive Risks
Key market risks include:
- Renewable fuels market volatility
- Regulatory environment changes
- Competitive landscape shifts
Regulatory and Compliance Risks
| Regulatory Area | Potential Impact | Risk Level |
|---|---|---|
| Environmental Regulations | Potential Compliance Costs | High |
| Renewable Fuel Standards | Policy Changes | Medium |
Strategic Risks
Strategic risks encompass:
- Technology commercialization challenges
- Market adoption uncertainties
- Investment recovery timelines
Financial Performance Risks
Financial risk indicators include:
- Negative operating margins
- Continued research and development expenses
- Potential additional capital raising requirements
Future Growth Prospects for Gevo, Inc. (GEVO)
Growth Opportunities
Gevo, Inc. is positioned for potential growth through several strategic initiatives in the renewable fuels and chemicals sector.
Market Expansion Opportunities
| Market Segment | Projected Growth | Potential Revenue Impact |
|---|---|---|
| Sustainable Aviation Fuel | $9.5 billion market by 2030 | $450 million potential annual revenue |
| Renewable Hydrocarbons | 15.3% CAGR projected | $320 million market potential |
Strategic Growth Drivers
- Net zero carbon production capabilities
- Advanced fermentation technology platforms
- Expanding production capacity in Texas facilities
Technology Investment Areas
| Technology Focus | Investment Amount | Expected Outcome |
|---|---|---|
| Advanced Biofuels R&D | $22.6 million | Enhanced production efficiency |
| Carbon Capture Technologies | $17.3 million | Reduced carbon footprint |
Key Performance Metrics
- Production Capacity: 45 million gallons annual renewable fuels potential
- Market Penetration: Targeting 3.5% of sustainable aviation fuel market by 2025
- Technology Efficiency: 92% carbon reduction compared to traditional fossil fuels
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