Company Overview
Aemetis, Inc. operates as a renewable natural gas and renewable fuels company, engaging in the operation, acquisition, development, and commercialization of low and negative carbon energy projects. The firm functions within the Basic Materials sector, specifically the Specialty Chemicals industry, positioning it as a provider of alternative energy solutions derived from agricultural and industrial byproducts. The company maintains a market capitalization of $216.55M and reported annual revenue of $207.98M, supported by a workforce of 220 employees. These financial figures indicate that the organization operates on a mid-cap scale, generating substantial revenue relative to its employee base, yet the market valuation suggests a market that prices the company with significant caution regarding its profitability trajectory and operational costs.
Financial Health
The company reported revenue of $207.98M over the trailing twelve months, yet this revenue generated a net income of $-77,001,000 and an EBITDA of $-27,593,000. The substantial gap between positive revenue and deeply negative net income reveals a cost structure where operating expenses and interest costs heavily outweigh gross earnings, resulting in a net loss that is more than double the EBITDA loss. Free cash flow stands at $-42,957,500, indicating that the company is burning cash rather than generating liquidity, which severely limits its financial flexibility to fund operations or acquisitions without external capital. The gross margin is -0.4%, the operating margin is -4.6%, and the profit margin is -37.0%; these negative figures indicate that the company is currently unable to retain any of its revenue after accounting for the cost of goods sold, operating expenses, and taxes, reflecting a fundamental challenge in achieving profitability. On the balance sheet, the company holds $4.89M in cash while carrying $514.09M in debt, and the debt-to-equity ratio is listed as N/A, highlighting a highly leveraged position where debt obligations vastly exceed available liquid assets. The current ratio is 0.07, which indicates a severe liquidity constraint where current liabilities significantly exceed current assets, suggesting an inability to meet short-term obligations without refinancing or additional capital. Return on Equity is N/A due to the negative equity position, while Return on Assets is -9.0%; these return metrics reveal that management is currently destroying value rather than generating returns on the capital deployed in the business.
Valuation Assessment
The trailing P/E ratio is N/A because the company is currently unprofitable, while the forward P/E is 4.15; this discrepancy implies that the market is valuing the company based on projected future earnings rather than current performance, suggesting an expectation of significant turnaround or earnings recovery. The price-to-book ratio is -0.70, indicating that the market values the company at a negative premium relative to its book value, which often occurs when assets are overstated or liabilities exceed assets. The price-to-sales ratio is 1.04, and the EV/EBITDA is -26.30; these alternative valuation metrics suggest that the market is pricing the stock primarily on sales multiples given the lack of traditional earnings-based valuation support. The 52-week high is $3.66 and the 52-week low is $1.22, and without the specific current share price in the provided facts, the position relative to this range is described by the full trading band which spans a wide volatility of $2.44. The beta is 2.21, which means the stock price is expected to be approximately 121% more volatile than the broader market, indicating high sensitivity to market movements and sector-specific risks.
Growth & Income
The revenue growth year-over-year is 14.2%, while earnings growth is N/A due to the company's negative net income; this implies that while top-line sales are expanding, the bottom line has not yet benefited from this growth, suggesting that expansion is being funded by cash reserves or debt rather than organic profitability. The dividend yield is N/A and the payout ratio is 0.0%, indicating that the company does not distribute dividends to shareholders. Since the company is a non-dividend payer, it reinvests all available earnings and cash flow back into the business to fund its renewable natural gas and fuels operations rather than providing income distributions. The overall growth and income profile shows a company with strong top-line expansion but a complete lack of earnings generation or dividend distribution, characterizing a high-risk, high-growth speculative asset.