Montauk Renewables Stock Fair Value Calculation – MONTAUK RENEWABLES Reports Q2 Earnings Results for Fiscal Year 2023
August 11, 2023
🌥️Earnings Overview
MONTAUK RENEWABLES ($NASDAQ:MNTK) reported their Q2 fiscal year 2023 earnings results on August 9 2023, for the period ending June 30 2023. With total revenue of USD 53.3 million, this represented a year-over-year decrease of 21.5%. Net income for Q2 also decreased significantly, with a 94.8% drop from the same period in the prior year to USD 1.0 million.
Price History
The company’s stock opened at $8.5 and closed at the same price, representing a decrease of 0.2% from its previous closing price of 8.5. This marks a decline in the company’s earnings performance compared to the same period during the previous year. Overall, MONTAUK RENEWABLES reported mixed financial results for the second quarter of fiscal year 2023, with revenue and net income both seeing decreases while operating income experienced an increase. The company’s stock opened and closed at $8.5 on Wednesday, representing a slight decrease from its previous closing price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Montauk Renewables. More…
| Total Revenues | Net Income | Net Margin |
| 177.91 | 14.37 | 10.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Montauk Renewables. More…
| Operations | Investing | Financing |
| 60.37 | -46.63 | -8.22 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Montauk Renewables. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 336.34 | 108.54 | 1.59 |
Key Ratios Snapshot
Some of the financial key ratios for Montauk Renewables are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.2% | 53.4% | 12.3% |
| FCF Margin | ROE | ROA |
| 7.7% | 6.0% | 4.1% |
Analysis – Montauk Renewables Stock Fair Value Calculation
At GoodWhale, we have been analyzing the financials of MONTAUK RENEWABLES and have come up with a fair value of the stock. Our proprietary Valuation Line indicates that the fair value of each MONTAUK RENEWABLES share is around $11.7. Interestingly, the stock is currently trading at $8.5, which means it is currently undervalued by 27.4%. This presents an opportunity for investors to buy the stock at a discounted price. More…
Peers
The competition among Montauk Renewables Inc and its competitors is fierce. The company is up against Canadian Utilities Ltd, REN-Redes Energeticas Nacionais Sgps SA, and Energy Company of Minas Gerais. All of these companies are vying for a share of the renewable energy market.
– Canadian Utilities Ltd ($TSX:CU)
Canadian Utilities Ltd is a leading Canadian energy company with a market cap of 9.57B as of 2022. The company has a strong focus on electricity generation, transmission and distribution, as well as natural gas and pipeline transportation. Canadian Utilities Ltd has a diversified portfolio of assets and operations across North America, with a particular focus on the Canadian market. The company’s return on equity is 11.45%.
– REN-Redes Energeticas Nacionais Sgps SA ($LTS:0KBT)
REN-Redes Energeticas Nacionais Sgps SA is a Portuguese electricity and gas utility company. The company is involved in the generation, transmission, distribution, and sale of electricity and natural gas. REN-Redes Energeticas Nacionais Sgps SA has a market capitalization of 1.69 billion as of 2022 and a return on equity of 10.08%. The company’s primary business is providing electricity and gas services to customers in Portugal.
– Energy Company of Minas Gerais ($NYSE:CIG)
Eletrobras is a Brazilian electric utility company. It is the largest power utility company in Brazil and Latin America, and the fourth largest in the world. The company is involved in the generation, transmission, and distribution of electricity. Eletrobras also has a presence in the renewable energy sector, with a number of hydroelectric, solar, and wind power plants.
Eletrobras has a market capitalization of 5.31 billion as of 2022. The company’s return on equity is 13.36%. Eletrobras is the largest power utility company in Brazil and Latin America, and the fourth largest in the world. The company is involved in the generation, transmission, and distribution of electricity. Eletrobras also has a presence in the renewable energy sector, with a number of hydroelectric, solar, and wind power plants.
Summary
Investors should take note of Montauk Renewables‘ Q2 earnings results for the fiscal year 2023, ending June 30 2023. Total revenue decreased 21.5% year-on-year to 53.3 million USD, and net income dropped 94.8% to 1.0 million USD. This is concerning given the company’s already weak financial performance, and shareholders should assess if the company is still a worthwhile investment. Additionally, investors should look into the reasons behind the sharp decline in both revenue and net income and consider the company’s prospects for future growth.
