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OPAL Fuels Inc. (including its subsidiaries, the Company, OPAL, we, us or our ) is a vertically integrated leader in the capture and conversion of biogas into low carbon intensity renewable natural gas ("RNG") and Renewable Power. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to de-carbonize industrial sectors.
Operating margin is thin at 2.12%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 16.4%, still solid. Margins contracted 4.9pp, which offsets some of the top-line progress.
ROIC dropped from 6.46% to 1.71%, capital efficiency is deteriorating. Negative free cash flow of -$34M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$337M
▲ +16.4% YoY
Net Income (TTM)
$2M
▲ +663.5% YoY
Op. Margin
1.34%
▼ -4.9pp YoY
ROIC
0.94%
▼ -4.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$64M
▲ +64.3% YoY
Op. Cash Flow (TTM)
$20M
▲ +16.3% YoY
Net Debt
$323M
Cash & Equiv.
$133M
3Y CAGR: +14.1%
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