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.
Montauk Renewables, Inc. Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$14.11|
|52 Week High||US$16.65|
|52 Week Low||US$6.79|
|1 Month Change||35.80%|
|3 Month Change||40.54%|
|1 Year Change||74.63%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||20.29%|
Recent News & Updates
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.
Be Wary Of Montauk Renewables (NASDAQ:MNTK) And Its Returns On Capital
When researching a stock for investment, what can tell us that the company is in decline? A business that's potentially...
|MNTK||US Renewable Energy||US Market|
Return vs Industry: MNTK exceeded the US Renewable Energy industry which returned 0.7% over the past year.
Return vs Market: MNTK exceeded the US Market which returned -12.9% over the past year.
|MNTK Average Weekly Movement||10.8%|
|Renewable Energy Industry Average Movement||10.6%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.1%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: MNTK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: MNTK's weekly volatility (11%) has been stable over the past year.
About the Company
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
|MNTK fundamental statistics|
Is MNTK overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MNTK income statement (TTM)|
|Cost of Revenue||US$81.74m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 09, 2022
|Earnings per share (EPS)||0.061|
|Net Profit Margin||5.79%|
How did MNTK perform over the long term?See historical performance and comparison