Gevo stock: why are investors still punishing it?

3:51 pm ET, 01 Aug 2018

Gevo, Inc. (GEVO) shares are trading at 3.89, up 4.01%.  What's driving GEVO stock price?  What should investors be aware of when it comes to GEVO?

Gevo is a company in the renewable fuel space, and it's well known for creating jet fuel from alcohol.  While the technology is promising, Gevo might not be able to commercialize it cost-efficiently.  

The company has a negative gross margin.  As debt payments are approaching, Gevo may have to dilute shareholders to be able to repay the loan. The market is punishing the company severely, and there may be further losses.

What is the sentiment towards the GEVO stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is negative. 


Over the last month, Gevo, Inc. (GEVO) returned +2.37%.

Gevo, Inc. (GEVO) short share of float is 10.94%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

For the latest price and information on Gevo, Inc., please visit Finstead and search for "GEVO price" or "GEVO news".

Gevo is a US-based renewable chemicals and biofuels company.  It develops alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. The company operates in two operating segments, the Gevo segment, and the Gevo Development/Agri-Energy segment.

GEVO is soaring today: how long will this last?

3:55 pm ET, 18 Jun 2018

Gevo Inc. (NASDAQ: GEVO) soared 270% today.  The stock price more than tripled on the news that the Environmental Protection Agency (EPA) approved the use of isobutanol at a 16% blend level in gasoline for cars.  The previously accepted level was 12.5%.

What is the GEVO stock forecast?  Can it keep up the pace?  

Per Finstead, there is no analyst coverage for the GEVO stock, because the stock is a micro-cap (GEVO market cap is $4.21M--search for "GEVO market cap" on Finstead.com).  You can check out the latest news on GEVO by searching for "GEVO news".    

Our technical analysis shows a strong short-term sentiment.  At 3.99, the social score for GEVO is extremely positive, which indicates market excitement about the stock.  However, the mid-term sentiment for GEVO is looking relatively weak, while long-term sentiment is somewhat neutral.   

Gevo praised the EPA's decision, saying 16% blend levels will allow more RINS per gallon and higher octane gasoline.  The EPA approved the higher level of isobutanol after a request from Butamax Advanced Biofuels.

Gevo is a renewable biofuels company, which main business is the development and commercialization of alternatives to gasoline based on isobutanol produced from renewable feedstocks in the United States. The company runs two distinct business lines: Gevo, Inc. and Gevo Development/Agri-Energy. The company was formerly known as Methanotech and changed its name to Gevo in March 2006.  It was founded in 2005 and is headquartered in Englewood, Colorado.

Gevo, Inc. (GEVO) Stock Guide

Updated at: 10:11 pm ET, 17 Sep 2020

Before we start: if you're looking for GEVO stock price, you can quickly find it out by visiting Finny and typing "GEVO quote". If you're looking for a quick scoop on GEVO stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "GEVO". You'll get all this info in one place. Or you can just type "GEVO news" to get the latest stock news.

Looking to buy or sell Gevo, Inc. (GEVO)? Interested in getting the full scoop on GEVO, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this GEVO stock guide, we'll address key questions about GEVO, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are GEVO earnings?
2. What is GEVO stock forecast (i.e., prediction)?
3. GEVO buy or sell? What is GEVO Finny Score?
4. What are the reasons to buy GEVO? Why should I buy GEVO stock?
5. What are the reasons to sell GEVO? Why should I sell GEVO stock?
6. What are GEVO key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are GEVO earnings?

GEVO trailing 12-month earnings per share (EPS) is -$2.19.

Analyst Predictions

2. What is GEVO stock forecast (i.e., prediction)?

Based on GEVO analyst price targets, GEVO stock forecast is $3.52 (for a year from now). That means the average analyst price target for GEVO stock is $3.52. The prediction is based on 2 analyst estimates.

The low price target for GEVO is $2.05, while the high price target is $5.00.

GEVO analyst rating is Hold.

Analysis

3. GEVO buy or sell? What is GEVO Finny Score?

#{finnyScore:63}Our quantitative analysis shows 5 reasons to buy and 3 reasons to sell GEVO, resulting in Finny Score of 63.

4. What are the reasons to buy GEVO? Why should I buy GEVO stock?

Here are the reasons to buy GEVO stock:

  • GEVO stock price ($0.90) is close to the 52-week low ($0.48). Perhaps now is a good time to buy? See GEVO price chart.
  • GEVO profitability is improving. The YoY profit margin change was 47.36 percentage points. See GEVO profitability chart.
  • GEVO Price/Book ratio is 0.31, which is low compared to its industry peers’ P/B ratios. See GEVO forward Price/Book ratio chart.
  • GEVO average analyst price target ($3.52) is above its current price ($0.90). See GEVO price target chart.
  • GEVO cash to debt ratio is 0.40, higher than the average industry (0.13) and sector (0.07) cash to debt ratio. See GEVO cash to debt chart.

5. What are the reasons to sell GEVO? Why should I sell GEVO stock?

Let's look at the reasons to sell GEVO stock (i.e., the bear case):

Key Stats

6. What are GEVO key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for GEVO:

Metrics GEVO
Price $0.97
Average Price Target / Upside $3.52 / 261.84%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Specialty Chemicals
Sector Basic Materials
Number of Employees 51
Market Cap $93.9M
Forward P/E Ratio -7.75
Price/Book Ratio 5.27
Revenue (TTM) $17.81M
YoY Quarterly Revenue Growth -80.60%
Profit Margin -172.53%

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