When looking at revenue, Gevo Inc. (NASDAQ: GEVO) is one of the best performers at the lower end of the Alternative Fuels industry.
In 2018, sales grew 19.3% for total revenue of $32.86 million. However, the bottom line does need focus. Like many biofuel companies, Gevo is investing heavily in new technologies and production. This led to a $8.93 million loss on gross income in 2018. The good news is that the loss was less significant than the previous year. In fact, Gevo’s gross income grew by 19.38%.
EBITDA, the most accurate measure of profitability, increased 5.26% last year. The company still has a negative margin of -47.11%, but this could be turned around if revenue growth continues.
Gevo’s focus on alternatives to petroleum-based fuels will make it a hard sell for mainstream investors. However, for those interested in the alternative market, there are few companies that have the technology or growth potential of Gevo. It’s inevitable that biofuels will become more viable in the future, and there’s already growth in the market today. Biofuels can be used as additives in petroleum products, helping to offset the environmental impact of the oil industry.
Alternative investors seeking a bargain pick should consider Gevo this October.
- 1 Year Price Growth: -20.96%
- YTD Price Growth: 35%
- 3 Month Price Growth: 49%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.