We Think Augwind Energy Tech Storage (TLV:AUGN) Can Afford To Drive Business Growth

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?

Given this risk, we thought we'd take a look at whether Augwind Energy Tech Storage (TLV:AUGN) shareholders should be worried about its cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Let's start with an examination of the business' cash, relative to its cash burn.

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How Long Is Augwind Energy Tech Storage's Cash Runway?

You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. In June 2025, Augwind Energy Tech Storage had ₪43m in cash, and was debt-free. Looking at the last year, the company burnt through ₪11m. So it had a cash runway of about 3.8 years from June 2025. There's no doubt that this is a reassuringly long runway. Depicted below, you can see how its cash holdings have changed over time.

Check out our latest analysis for Augwind Energy Tech Storage

How Well Is Augwind Energy Tech Storage Growing?

Augwind Energy Tech Storage reduced its cash burn by 15% during the last year, which points to some degree of discipline. Revenue also improved during the period, increasing by 12%. On balance, we'd say the company is improving over time. In reality, this article only makes a short study of the company's growth data. This graph of historic earnings and revenue shows how Augwind Energy Tech Storage is building its business over time.

How Easily Can Augwind Energy Tech Storage Raise Cash?

While Augwind Energy Tech Storage seems to be in a decent position, we reckon it is still worth thinking about how easily it could raise more cash, if that proved desirable. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.

Since it has a market capitalisation of ₪83m, Augwind Energy Tech Storage's ₪11m in cash burn equates to about 13% of its market value. Given that situation, it's fair to say the company wouldn't have much trouble raising more cash for growth, but shareholders would be somewhat diluted.

So, Should We Worry About Augwind Energy Tech Storage's Cash Burn?

As you can probably tell by now, we're not too worried about Augwind Energy Tech Storage's cash burn. For example, we think its cash runway suggests that the company is on a good path. On this analysis its cash burn reduction was its weakest feature, but we are not concerned about it. Considering all the factors discussed in this article, we're not overly concerned about the company's cash burn, although we do think shareholders should keep an eye on how it develops. On another note, we conducted an in-depth investigation of the company, and identified 4 warning signs for Augwind Energy Tech Storage (1 doesn't sit too well with us!) that you should be aware of before investing here.

Of course Augwind Energy Tech Storage may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.