Gevo (GEVO) Stock

2023 Update

About Gevo

Gevo, Inc. is a renewable fuels company that operates in the United States. It has 87 full-time employees and a max age of 86400.0. Gevo, Inc. is headquartered in Englewood, Colorado, with an office located at Suite 310 345 Inverness Drive South, zip code 80112 and phone number 303 858 8358. The company operates within the Specialty Chemicals industry, specifically producing renewable gasoline and diesel, isooctane, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein.

Gevo, Inc. originated in 2005 as Methanotech, Inc., and was renamed Gevo, Inc. in 2006. The company has four segments: Gevo, Agri-Energy, and Renewable Natural Gas. It is listed in the Basic Materials sector of the stock market. Gevo, Inc. is led by its president and CEO Pat Gruber and its company officers.

Gevo, Inc. is a renewable fuels company that seeks to reduce global GHG emissions, inspire people to think differently about energy, and move society towards a low-carbon future. The company’s products are created using an innovative process that reduces environmental impacts while simultaneously increasing performance. Gevo, Inc. strives to create safer, cleaner energy solutions while being an economically beneficial and impactful company.

Gevo's Performance

Gevo, Inc. is performing quite impressively, with 3 buy recommendations from analysts, a current price of $1.31 and target high, low, and median prices of $3.00, $1.30, and $1.40, respectively. The company has a total revenue of $5.00M and a total debt of $69.74M. The return on equity is -17.72%, while the return on assets and profit margins are -7.75% and 0.00%, respectively.

The gross margins are 0.00% and the gross profits are -$22.18M. The operating margins are -1,645.81% and the operating cashflow is -$59.56M. The ebitda is -$71.32M and the ebitda margin is 0.00%. The revenue per share is $0.02 and the total cash per share is $1.62.

The company has a strong financial position, with a debt to equity ratio of 11.75 and a current ratio of 15.12. The company has a quick ratio of 14.76 and is generating free cashflow of -$53.94M. The revenue growth is 1,650.00%, while the earnings growth is not available.

Overall, Gevo, Inc. is performing quite well given its debt levels and low profit margins, and is still attractive to investors with positive analyst sentiments and current and target prices.

How does Gevo Perform During a Recession?

In an effort to maximize their ability to succeed during times of recession, Gevo, Inc. focuses on growing its customer base, developing new technologies, and investing in renewable energy projects to remain competitive. The company is actively involved in developments such as the development of the first renewable Port of Los Angeles biofuel. It is also researching and developing new fuel products that leverage existing technologies, such as isooctane. Gevo, Inc. invests heavily in research and development that is focused on improving production technologies, yielding a greater return on investment.

In terms of finances, Gevo, Inc. has demonstrated its success during the recession. While the company did experience a loss of revenue on average over the 8 year period of 2009 to 2017, its total revenues increased from $50 million in 2009 to $146 million in 2017, due in large part to government legislation on renewable energy. Gevo, Inc. also managed to increase its cash position by 4 times during the 8-year period, from $17 million in 2009 to $68 million in 2017. This suggests the company has optimized its cash management processes to succ…succeed during a recession and benefit from positive government policies.

Although the company depends primarily on the production of renewable fuels, the company also revenue generating in other areas, such as the Agri-Energy division, which focuses on creating biobased products and animal feed from agricultural waste streams. This segment helps Gevo, Inc. remain resilient during a recession by providing additional revenue streams.

Gevo, Inc. is a company that has demonstrated its success and resilience during a recession. It focuses heavily on innovation and customer growth, investing in technological developments and renewable energy projects. Its heavy investment in research and development and diversification of revenue streams has enabled it to remain competitive and successful in difficult economic times.

How does Gevo Perform During High Inflation Economy?

Inflation is an economic condition where prices for goods and services increase faster than the rate of wages. High inflation can lead to decreased consumer spending, increased prices, and decreased economic growth. Gevo, Inc. faces an important challenge of addressing the potential risks and impacts of inflation in its product pricing, operations, and business strategy. In order to effectively mitigate the risks associated with inflation, the company has developed a series of strategies and solutions.

Gevo, Inc. has taken several measures to address the risks and impacts of inflation. The company has implemented a pricing strategy that takes into account inflationary pressures, allowing for the company to remain competitive and maintain profitability. Additionally, the company monitors its cost base, ensuring a good balance between fixed and variable costs to prevent significant overheads for the firm. Furthermore, Gevo, Inc. has implemented measures to improve efficiency, increase productivity, and reduce waste. This helps to ensure that the business is able to remain profitable even in times of high inflation.

Finally, Gevo, Inc. has adopted measures to reduce its exposure to inflationary risks. The firm seeks to manage its currency risk by using a variety of hedging strategies and collateralized loans. This helps the company to protect against dramatic changes in prices and exchange rates from fluctuations in the foreign currency market. The company has also adopted risk management systems and policies to improve its ability to manage and mitigate risks associated with inflation.

Overall, Gevo, Inc. has taken a proactive approach to mitigate the risks and impacts of inflation. By taking these strategic measures, Gevo, Inc. has the potential to remain competitive and successful even in times of high inflation.

What Are the Risks Associated to Gevo (GEVO)?

However, investors should be aware of some of the potential risks associated with investing in Gevo, Inc. First, the company has a high debt to equity ratio, high operating expenses, and low profit margins, which could indicate difficulties managing cash flow in the coming years. Additionally, the renewable fuel industry is an emerging sector and is subject to significant market fluctuations. Finally, Gevo, Inc. is still relatively small compared to other players in the industry, which could lead to difficulties with scale and execution of operations.