ClearSign Technologies Corp (NASDAQ: CLIR)

Sector: Industrials Industry: Pollution & Treatment Controls CIK: 0001434524
Market Cap 33.33 Mn
P/B 3.67
P/E -5.25
P/S 15.48
ROIC (Qtr) -75.54
Div Yield % 0.00
Rev 1y % (Qtr) -44.65
Total Debt (Qtr) 185,000.00
Debt/Equity (Qtr) 0.02
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About

ClearSign Technologies Corp, known by its ticker symbol CLIR, operates in the industry of designing and developing technologies to improve the performance of industrial combustion systems. This includes enhancing emission and operational performance, energy efficiency, safety, and overall cost-effectiveness. The company's patented ClearSign Core technology is a significant innovation that uses a porous ceramic structure or metal flame holder device to reduce flame length and achieve low emissions without the need for external flue gas recirculation,...

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Investment thesis

Bull case

  • Healthy cash reserves of 10.49M provide 111.57x coverage of short-term debt 94000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 11.97M provides 64.70x coverage of total debt 185000, indicating robust asset backing and low credit risk.
  • Tangible assets of 11.97M provide robust 7.97x coverage of other current liabilities 1.50M, indicating strong asset backing.
  • Cash reserves of 10.49M provide robust 2.93x coverage of current liabilities 3.58M, indicating strong short-term solvency.
  • Strong cash position of 10.49M provides 6.99x coverage of other current liabilities 1.50M, indicating excellent liquidity.

Bear case

  • Investment activities of (119000) provide weak support for R&D spending of 1.46M, which is -0.08x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (3.87M) shows concerning coverage of stock compensation expenses of 1.01M, with a -3.83 ratio indicating potential earnings quality issues.
  • Free cash flow of (3.89M) provides weak coverage of capital expenditures of 25000, with a -155.72 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (6.35M) show weak coverage of depreciation charges of 281000, with a -22.59 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (3.87M) is outpaced by equity issuance of 49000 (-78.94 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Pollution & Treatment Controls
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VLTO Veralto Corp 22.76 Bn 26.05 4.31 2.67 Bn
2 ZWS Zurn Elkay Water Solutions Corp 8.65 Bn 43.69 5.10 0.54 Bn
3 FSS Federal Signal Corp /De/ 7.21 Bn 168.93 10.04 0.24 Bn
4 CECO Ceco Environmental Corp 2.77 Bn 53.33 3.85 0.24 Bn
5 PCT PureCycle Technologies, Inc. 1.46 Bn -6.40 258.45 0.43 Bn
6 ERII Energy Recovery, Inc. 0.91 Bn 46.74 6.75 0.00 Bn
7 ADUR Aduro Clean Technologies Inc. 0.33 Bn -23.93 1,516.99 0.00 Bn
8 ARQ Arq, Inc. 0.13 Bn -34.10 1.13 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.66 3.33
EV to Cash from Ops. EV/CFO -5.48 -65.71
EV to Debt EV to Debt 114.60 136.79
EV to EBIT EV/EBIT -3.34 3.75
EV to EBITDA EV/EBITDA -2.93 8.77
EV to Free Cash Flow [EV/FCF] EV/FCF -5.45 2.21
EV to Market Cap EV to Market Cap 0.64 1.03
EV to Revenue EV/Rev 9.85 89.55
Price to Book Value [P/B] P/B 3.67 6.68
Price to Earnings [P/E] P/E -5.25 15.25
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.26
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.56
Interest Coverage Int. cover (Qtr) 0.00 -107.95
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -38.89 -82.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -27.60 79.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -24.73 -265.30
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -27.22 -75.61
EBIT Growth (1y) % EBIT 1y % (Qtr) -24.73 -272.40
EBT Growth (1y) % EBT 1y % (Qtr) -24.73 -325.95
EPS Growth (1y) % EPS 1y % (Qtr) -9.09 2,177.75
FCF Growth (1y) % FCF 1y % (Qtr) 28.25 -76.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -55.48 7.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.93 2.16
Current Ratio Curr Ratio (Qtr) 3.28 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.60
Interest Cover Ratio Int Coverage (Qtr) 0.00 -107.95
Times Interest Earned Times Interest Earned (Qtr) 0.00 -107.95
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -281.80 -775.28
EBIT Margin % EBIT Margin % (Qtr) -294.89 -2,721.83
EBT Margin % EBT Margin % (Qtr) -294.89 -2,762.77
Gross Margin % Gross Margin % (Qtr) 32.80 -44.42
Net Profit Margin % Net Margin % (Qtr) -294.90 -2,763.74