Company Overview
Turbo Energy, S.A. operates within the technology sector, specifically focusing on the solar industry, where it designs, develops, and distributes equipment essential for the generation, management, and storage of photovoltaic energy across Spain, the rest of Europe, and international markets. The company's product portfolio includes lithium-ion batteries, inverters, photovoltaic modules, and the Go Solar portable photovoltaic product, enabling clients to manage energy solutions effectively. As of the latest data, the company holds a market capitalization of $30.04M and employs 43 individuals to support its operations. The annual revenue generated over the trailing twelve months is $9.98M, positioning the firm as a mid-sized player in the renewable energy equipment space. These valuation figures indicate that the company is a relatively small entity with a market cap significantly lower than large-cap peers, suggesting a smaller scale of operations and a niche focus within the broader solar value chain rather than a dominant market leader.
Financial Health
The company reported a revenue of $9.98M for the trailing twelve months, yet it recorded a net income of $-1,873,384, revealing a substantial gap between top-line sales and bottom-line profitability that points to significant operating expenses or non-operating costs. This negative net income aligns with an EBITDA of $-2,334,773, indicating that the core business operations are currently generating losses before interest, taxes, depreciation, and amortization. The free cash flow stands at $-2,549,818, which implies that the company is burning cash and lacks the immediate financial flexibility to fund expansion without external capital injections. Regarding profitability margins, the gross margin is 18.3%, showing that nearly two-fifths of revenue covers the cost of goods sold, while the operating margin of -21.4% and profit margin of -18.8% highlight the severe pressure on operating leverage and overall profitability. The balance sheet shows a cash position of $1.58M against total debt of $8.00M, resulting in a debt-to-equity ratio of 619.90, which characterizes the balance sheet as highly leveraged rather than conservative. Liquidity is constrained further by a current ratio of 0.88, indicating that the company's current assets are insufficient to cover its current liabilities without selling long-term assets or securing additional financing. Return on Equity is -100.8% and Return on Assets is -13.9%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate profit.
Valuation Assessment
The trailing twelve-month P/E ratio is N/A and the forward P/E is N/A, meaning traditional earnings-based valuation metrics cannot be applied due to the lack of positive earnings, which implies that investors are pricing the stock based on future growth potential or asset backing rather than current profitability. The price-to-book ratio is 18.53, a figure that indicates the market values the company at a significant premium over its book value, suggesting high expectations for future turnaround or asset appreciation despite current losses. Alternative valuation metrics include a price-to-sales ratio of 3.01 and an EV/EBITDA of -61.73, which suggest the market is willing to pay a multiple of revenue despite negative earnings, a common scenario in high-growth or distressed turnaround situations where revenue stability is prioritized over immediate earnings. The stock's 52-week high is $20.45 and the 52-week low is $0.57, placing the current trading range within a highly volatile band where the price could theoretically trade anywhere between these extremes depending on market sentiment. The beta is 2.04, which means the stock is expected to be more than twice as volatile as the broader market, indicating that price movements will likely be amplified by general market swings.
Growth & Income
Revenue growth year-over-year is 11.5%, demonstrating an upward trajectory in sales, while earnings growth year-over-year is N/A because the company has not yet achieved positive earnings to measure growth against. Since earnings are not growing faster than revenue due to the absence of positive earnings, the expansion of the top line is the primary driver of company progress at this stage. The company does not pay dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means it reinvests all available cash flow and capital into operations, research, or debt reduction rather than distributing income to shareholders. This reinvestment strategy is typical for companies in the early growth phases or those attempting to restore profitability, where capital retention is prioritized over shareholder payouts. Overall, the growth and income profile reflects a capital-intensive solar equipment manufacturer that is currently sacrificing current profitability and income distribution to drive revenue expansion and establish a sustainable business model in the competitive photovoltaic energy sector.