Gevo Inc. (NASDAQ: GEVO) is an alternative energy company that specializes in renewable chemicals and emerging biofuels. Unlike some of its peers, Gevo develops true alternatives to petroleum products. It aims to create solutions that can be used as direct replacements for fossil fuels. Ease of transition could help to increase the global utilization of biofuels.
Gevo had a strong fiscal year in 2018. It generated $32.86 million in revenue, its best year on record. Total revenue growth was 19.35% year over year. The company is yet to achieve profitability, but this is understandable considering the emerging technologies and concepts that it deals with. This is a stock for long-term investors, rather than those who want a quick return. Gevo is setting a foundation in biofuels and renewables that will allow it to compete with traditional fuel companies within the next decade.
Even without profitability, a high level of fiscal responsibility should give confidence to investors. In 2018, income increased by 19.38%, and net loss was the lowest in five years. In its most recent quarterly report, the company revealed that it had $33 million of cash on hand, with debt below $14 million.
Gevo won’t impress mainstream investors, but for alternative portfolios it’s a bargain with potential. The long-term target price of $10 on this stock suggests a profitable upside for early investors.
- 1 Year Price Growth: -44.18%
- YTD Price Growth: 90%
- 3 Month Price Growth: 33%
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