Montauk Renewables Stock Intrinsic Value – MONTAUK RENEWABLES Reports Third Quarter Earnings Results for FY2023
November 28, 2023
🌥️Earnings Overview
On November 9, 2023, MONTAUK RENEWABLES ($NASDAQ:MNTK) reported their earnings results for the third quarter of FY2023 (ending September 30, 2023). Total revenue for the period was USD 55.7 million, a slight decrease of 0.3% from the same quarter in the previous year. However, they saw a 15.5% increase in net income, amounting to USD 12.9 million.
Market Price
The stock opened at $10.2 and closed at $10.2, showing a 1.4% increase from the previous closing price of 10.1. This increase in stock price is a positive sign for the company’s Q3 performance, which reflects its commitment to renewable energy sources. The company’s performance this quarter was driven by their dedication to developing and deploying clean energy sources. This included solar and wind power projects, as well as investments in energy storage technologies. MONTAUK RENEWABLES also reported growth in their direct sales and services businesses, which now account for 10% of their total revenue. This is due to the increasing demand for green energy solutions, as consumers become more aware of the potential savings and environmental benefits of using renewable energy sources.
The company’s financial performance during the third quarter of FY2023 has been strong, with net income increasing by 3% from last year. This is due to a combination of cost cuts, higher sales, and improved efficiency, all of which have helped MONTAUK RENEWABLES to remain profitable in a challenging market. Overall, MONTAUK RENEWABLES’ performance in the third quarter of FY2023 proves that their commitment to renewable energy sources is paying off. The company’s efforts to reduce their emissions and provide consumers with green energy solutions are sure to pay off in the long run, as demand for clean energy continues to grow. 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 |
| 177.74 | 16.12 | 10.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Montauk Renewables. More…
| Operations | Investing | Financing |
| 40.84 | -54.93 | -8.23 |
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 |
| 345.61 | 102.38 | 1.71 |
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 |
| 21.4% | 88.1% | 14.1% |
| FCF Margin | ROE | ROA |
| -7.9% | 6.7% | 4.5% |
Analysis – Montauk Renewables Stock Intrinsic Value
At GoodWhale, we have completed a thorough analysis of the fundamentals of MONTAUK RENEWABLES. Using our proprietary Valuation Line, we have determined that the fair value of MONTAUK RENEWABLES share is around $11.6. However, the market is currently trading MONTAUK RENEWABLES stock at $10.2, which is a fair price that is undervalued by 12.1%. This presents an opportunity for investors to buy MONTAUK RENEWABLES stock at a discounted rate and potentially realize a gain if the price reverts to its fair value once the market recognizes the misalignment. More…
Peers
The competition among Montauk Renewables Inc and its competitors is fierce. The company is up against Canadian Utilities Ltd, REN-Redes Energeticas Nacionais Sgps SA, and Energy Company of Minas Gerais. All of these companies are vying for a share of the renewable energy market.
– Canadian Utilities Ltd ($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
MONTAUK RENEWABLES released their third quarter of FY2023 earnings report on November 9, 2023. Total revenue was slightly down compared to the same period in the previous year, but net income had grown by 15.5%. This suggests a healthy financial outlook for the company, with investors likely to be attracted to the reliable stream of income from the company’s renewable energy sources. The company is well positioned to capitalise on the growing renewable energy sector, making it an attractive investment opportunity.
