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MNTK

Montauk Renewables NasdaqCM:MNTK Stock Report

Last Price

US$17.66

Market Cap

US$2.5b

7D

13.3%

1Y

120.8%

Updated

18 Aug, 2022

Data

Company Financials +
MNTK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends0/6

MNTK Stock Overview

Montauk Renewables, Inc., a renewable energy company, engages in recovery and processing of biogas from landfills and other non-fossil fuel sources.

Rewards

Earnings are forecast to grow 31% per year

Became profitable this year

Risk Analysis

No risks detected for MNTK from our risk checks.

Montauk Renewables, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Montauk Renewables
Historical stock prices
Current Share PriceUS$17.66
52 Week HighUS$17.81
52 Week LowUS$6.79
Beta0
1 Month Change65.20%
3 Month Change48.90%
1 Year Change120.75%
3 Year Changen/a
5 Year Changen/a
Change since IPO50.55%

Recent News & Updates

Aug 09

Montauk Renewables GAAP EPS of $0.13 beats by $0.02, revenue of $67.9M beats by $17.2M

Montauk Renewables press release (NASDAQ:MNTK): Q2 GAAP EPS of $0.13 beats by $0.02. Revenue of $67.9M (+114.2% Y/Y) beats by $17.2M. Updated 2022 Full Year Outlook: RNG revenues expected to range between $200.0 and $220.0 million RNG production volumes expected to range between 5.6 and 6.3 million MMBtu Renewable Electricity revenues expected to range between $17.0 and $18.8 million Renewable Electricity production volumes expected to range between 188 and 208 thousand MWh

Jul 05

Nimble Montauk Renewables Looks Positioned For Gains Ahead

Montauk Renewables went public in January 2021, raising about $26 million in an IPO. The firm operates biogas (renewable natural gas) and related renewable energy facilities in the U.S. MNTK has benefitted from the soaring price of natural gas. Although geopolitical and market forces remain volatile, management appears to be nimble in maximizing its growth and monetization opportunities. My outlook is Bullish at around $9.20 per share on a continued strong future pricing environment for natural gas, especially as we head into colder fall and winter seasons. A Quick Take On Montauk Renewables Montauk Renewables, Inc. (MNTK) went public in January 2021, raising approximately $25.9 million in gross proceeds in an IPO that priced at $8.50 per share. The firm operates U.S. biogas facilities using a variety of feedstock sources. I view the natural gas pricing environment to be a strong if somewhat volatile one in the months ahead and management has proven its ability to correctly time its RIN commitments. My outlook on MNTK is a Buy at its current price level of around $9.20 per share. Montauk Renewables Overview Pittsburgh, Pennsylvania-based Montauk was founded to develop and operate renewable natural gas (biogas) projects such as waste methane from landfills, livestock feed and other non-fossil fuel sources to provide energy for electricity. Management is headed by president and CEO Sean McClain, who has been with the firm since 2014 and previously held management positions at BPL Global Limited, Bayer and Dick's Sporting Goods. The firm's customers include landfill and livestock farm operators, local utilities, large refiners and commercial RIN off-take companies. Electricity customers include electricity utilities that buy electricity according to fixed-price contracts. Montauk's Market & Competition According to a 2019 market research report by Global Market Insights, the global market for biogas was an estimated $72 billion in 2018 and is expected to reach $110 billion by 2025. This represents a forecast CAGR of 7.1% from 2018 to 2025. The main drivers for this expected growth are increasing environmental concern over fossil-fuel emissions as well as a desire to achieve energy diversity across the portfolio of sources. Also, a growing use of renewable energy technologies coupled with increasingly stringent environmental regulations will contribute to the industry's growth trajectory. Major competitive or other industry participants include: Aria Energy Morrow Renewables DTE (DTE) Ameresco (AMRC) Waste Management (WM). Montauk Renewables' Recent Financial Performance Total revenue by quarter has risen over the past 5 quarters: 5 Quarter Total Revenue (Seeking Alpha) Other operating expenses as a percentage of total revenue by quarter have varied without a particular trend: 5 Quarter Other Operating Expenses % Of Revenue (Seeking Alpha) Operating income by quarter has varied significantly, swinging back into negative territory in the most recent reporting period: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have also turned negative in Q1 2022: 5 Quarter Earnings Per Share (Seeking Alpha) In the past 12 months, MNTK's stock price has risen 27.5 percent vs. the U.S. S&P 500 index' fall of around 13.6 percent, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation Metrics For Montauk Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Market Capitalization $1,320,000,000 Enterprise Value $1,330,000,000 Price / Sales [TTM] 8.84 Enterprise Value / Sales [TTM] 8.96 Operating Cash Flow [TTM] $44,710,000 Revenue Growth Rate [TTM] 31.23% Earnings Per Share $0.06 (Source - Seeking Alpha) Commentary On Montauk Renewables In its last earnings call (Source - Seeking Alpha), covering Q1 2022's results, management highlighted increased production at the firm's Pico facility, a dairy cluster RNG (Renewable Natural Gas) project in Idaho. The firm has been actively managing its RIN tactics and chose not to sell into what it perceived to be a temporarily soft market in Q1, thus lowering its revenue for that period. So far in Q2 there has been a rebound of D3 RIN index pricing and management has completed commitments to sell all of its generated RINs, so revenue in Q2 should reflect that timing difference at an average price of $3.40 index price per RIN for the firm's 4.4 million RIN inventory. As to its financial results, revenue has grown due to a higher natural gas price, up 84% in Q1 2022 year-over-year. EBITDA for the quarter was $3.8 million versus negative $6.5 million for Q1 2021.

Shareholder Returns

MNTKUS Renewable EnergyUS Market
7D13.3%4.4%1.4%
1Y120.8%12.4%-8.4%

Return vs Industry: MNTK exceeded the US Renewable Energy industry which returned 9.3% over the past year.

Return vs Market: MNTK exceeded the US Market which returned -9% over the past year.

Price Volatility

Is MNTK's price volatile compared to industry and market?
MNTK volatility
MNTK Average Weekly Movement10.2%
Renewable Energy Industry Average Movement10.3%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: MNTK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: MNTK's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1980132Sean McClainhttps://www.montaukrenewables.com

Montauk Renewables, Inc., a renewable energy company, engages in recovery and processing of biogas from landfills and other non-fossil fuel sources. It operates in two segments, Renewable Natural Gas and Renewable Electricity Generation. The company develops, owns, and operates renewable natural gas (RNG) projects that capture methane and prevents it from being released into the atmosphere by converting it into either RNG or electrical power for the electrical grid.

Montauk Renewables, Inc. Fundamentals Summary

How do Montauk Renewables's earnings and revenue compare to its market cap?
MNTK fundamental statistics
Market CapUS$2.50b
Earnings (TTM)US$32.43m
Revenue (TTM)US$185.06m

77.0x

P/E Ratio

13.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MNTK income statement (TTM)
RevenueUS$185.06m
Cost of RevenueUS$92.49m
Gross ProfitUS$92.57m
Other ExpensesUS$60.14m
EarningsUS$32.43m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.23
Gross Margin50.02%
Net Profit Margin17.52%
Debt/Equity Ratio36.8%

How did MNTK perform over the long term?

See historical performance and comparison