Gevo, Inc. (NASDAQ: GEVO)

Sector: Basic Materials Industry: Specialty Chemicals CIK: 0001392380
Market Cap 460.48 Mn
P/B 0.98
P/E -10.20
P/S 3.81
ROIC (Qtr) -5.88
Div Yield % 0.00
Rev 1y % (Qtr) 2,073.54
Total Debt (Qtr) 167.75 Mn
Debt/Equity (Qtr) 0.36

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 108.37M provide 3.43x coverage of short-term debt 31.61M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 562.09M provides 3.35x coverage of total debt 167.75M, indicating robust asset backing and low credit risk.
  • Cash position of 108.37M provides exceptional 118.18x coverage of minority interest expenses 917000, indicating strong liquidity.
  • Robust tangible asset base of 562.09M provides 8.64x coverage of working capital 65.05M, indicating strong operational backing.
  • Cash reserves of 108.37M provide robust 1.51x coverage of current liabilities 71.66M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (52.20M) barely covers its investment activities of (231.99M), with a coverage ratio of 0.23, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (231.99M) provide weak support for R&D spending of 4.53M, which is -51.18x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 108.37M provide limited coverage of acquisition spending of (198.46M), which is -0.55x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (52.20M) shows concerning coverage of stock compensation expenses of 8.75M, with a -5.96 ratio indicating potential earnings quality issues.
  • Free cash flow of (85.73M) provides weak coverage of capital expenditures of 33.53M, with a -2.56 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Chemicals
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LIN Linde Plc 218.63 Bn 38.41 6.61 25.93 Bn
2 SHW Sherwin Williams Co 110.34 Bn 170.54 11.54 13.58 Bn
3 ECL Ecolab Inc. 80.35 Bn 80.18 5.93 8.67 Bn
4 APD Air Products & Chemicals, Inc. 56.37 Bn 48.29 5.86 18.31 Bn
5 PPG Ppg Industries Inc 34.00 Bn 31.05 2.58 7.91 Bn
6 LYB LyondellBasell Industries N.V. 17.46 Bn 5.03 0.49 13.22 Bn
7 DD DuPont de Nemours, Inc. 16.63 Bn 3.65 0.32 8.90 Bn
8 ALB Albemarle Corp 14.44 Bn 48.94 6.36 3.63 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.74 1.52
EV to Cash from Ops. EV/CFO -9.67 12.52
EV to Debt EV to Debt 3.01 13.65
EV to EBIT EV/EBIT -16.19 21.45
EV to EBITDA EV/EBITDA -44.43 14.82
EV to Free Cash Flow [EV/FCF] EV/FCF -5.89 29.24
EV to Market Cap EV to Market Cap 1.10 3.84
EV to Revenue EV/Rev 4.18 89.11
Price to Book Value [P/B] P/B 0.98 5.48
Price to Earnings [P/E] P/E -10.20 16.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -5.31
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -75.74
Dividend per Basic Share Div per Share (Qtr) 0.00 1.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.50
Interest Coverage Int. cover (Qtr) -2.23 -8.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -13.67 -1.67
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -63.00 72.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 59.08 -31.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 84.97 51.49
EBIT Growth (1y) % EBIT 1y % (Qtr) 59.08 0.57
EBT Growth (1y) % EBT 1y % (Qtr) 43.22 -80.35
EPS Growth (1y) % EPS 1y % (Qtr) 41.18 -90.82
FCF Growth (1y) % FCF 1y % (Qtr) 14.81 -50.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1,355.88 219.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 0.70
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.41
Cash Ratio Cash Ratio (Qtr) 1.51 1.28
Current Ratio Curr Ratio (Qtr) 1.91 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.36 0.92
Interest Cover Ratio Int Coverage (Qtr) -2.23 -8.92
Times Interest Earned Times Interest Earned (Qtr) -2.23 -8.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4.00 -333.97
EBIT Margin % EBIT Margin % (Qtr) -25.78 -374.34
EBT Margin % EBT Margin % (Qtr) -37.33 -379.75
Gross Margin % Gross Margin % (Qtr) 46.70 29.26
Net Profit Margin % Net Margin % (Qtr) -37.30 -380.67