📊 OPAL Key Takeaways
Is OPAL Fuels Inc. (OPAL) a Good Investment?
OPAL Fuels exhibits deteriorating fundamentals with net income down 88.2% YoY despite modest 6.8% revenue growth, signaling operational distress. The balance sheet is structurally unsound with a debt-to-equity ratio of 55.55x and only $8.2M in equity against $456.6M in long-term debt, creating significant solvency risk. Negative free cash flow of -$11.5M indicates the company is burning cash despite positive operating cash flow, unsustainable without near-term profitability improvements.
Modest top-line growth is offset by very thin profitability (2.1% operating margin, 1.2% net margin) and low ROA, indicating limited earning power on a sizable asset base. Free cash flow is negative due to heavy capex, liquidity is only modest, and negative stockholders' equity alongside substantial long‑term debt elevates financial and refinancing risk. Until margins broaden, FCF turns sustainably positive, and equity is repaired, fundamentals remain unattractive.
OPAL Fuels Inc. Key Strengths (OPAL)
- Positive operating cash flow of $12.9M demonstrates underlying business can generate cash
- Strong cash position of $133.2M provides near-term runway for operations and debt service
- Solid liquidity with current and quick ratios at 2.20x indicates short-term ability to meet obligations
- Revenue growth of 6.8% YoY shows some business demand persists
- Revenue growth of 6.8% YoY
- Positive operating income and operating cash flow
- Current and quick ratios at 1.18x indicate adequate near-term liquidity
OPAL Stock Risks: OPAL Fuels Inc. Investment Risks
- Severely deteriorated profitability with net income down 88.2% YoY indicates accelerating operational problems
- Critically high leverage with 55.55x debt-to-equity ratio creates distress risk; minimal equity cushion of only $8.2M
- Negative free cash flow of -$11.5M shows cash burn at enterprise level despite positive OCF; capital intensity exceeds profitability
- Negative operating margin (-6.6%), net margin (-3.6%), ROE (-32.1%), and ROA (-0.2%) indicate value destruction across all metrics
- CapEx of $24.4M exceeds OCF of $12.9M, suggesting unsustainable capital investment relative to operations
- Negative stockholders' equity signaling balance sheet weakness
- High leverage with $361M long-term debt and uncertain interest coverage
- Negative free cash flow and thin margins increase execution and refinancing risk
Key Metrics to Watch
- Net income trajectory and path to profitability in next 2-4 quarters
- Free cash flow trend and whether it can turn positive without cash depletion
- Debt refinancing ability and covenant compliance given extreme leverage and deteriorating performance
- Free cash flow (OCF minus capex)
- Interest coverage and cash/liquidity levels
OPAL Fuels Inc. (OPAL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.20x current ratio provides a solid financial cushion.
OPAL Profit Margin, ROE & Profitability Analysis
OPAL vs Services Sector: How OPAL Fuels Inc. Compares
How OPAL Fuels Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is OPAL Fuels Inc. Stock Overvalued? OPAL Valuation Analysis 2026
Based on fundamental analysis, OPAL Fuels Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
OPAL Fuels Inc. Balance Sheet: OPAL Debt, Cash & Liquidity
OPAL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: OPAL Fuels Inc.'s revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.02 reflects profitable operations.
OPAL Revenue Growth, EPS Growth & YoY Performance
OPAL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $67.4M | $1.3M | $-0.01 |
| Q3 2025 | $77.9M | $11.4M | $0.05 |
| Q2 2025 | $69.8M | $1.9M | $-0.01 |
| Q1 2025 | $64.0M | $677.0K | $-0.01 |
| Q3 2024 | $70.0M | $227.0K | $-0.01 |
| Q2 2024 | $54.1M | $1.9M | $-0.01 |
| Q1 2024 | $42.1M | $677.0K | $-0.01 |
| Q3 2023 | $65.3M | $227.0K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
OPAL Fuels Inc. Dividends, Buybacks & Capital Allocation
OPAL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for OPAL Fuels Inc. (CIK: 0001842279)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OPAL
What is the AI rating for OPAL?
OPAL Fuels Inc. (OPAL) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OPAL's key strengths?
Claude: Positive operating cash flow of $12.9M demonstrates underlying business can generate cash. Strong cash position of $133.2M provides near-term runway for operations and debt service. ChatGPT: Revenue growth of 6.8% YoY. Positive operating income and operating cash flow.
What are the risks of investing in OPAL?
Claude: Severely deteriorated profitability with net income down 88.2% YoY indicates accelerating operational problems. Critically high leverage with 55.55x debt-to-equity ratio creates distress risk; minimal equity cushion of only $8.2M. ChatGPT: Negative stockholders' equity signaling balance sheet weakness. High leverage with $361M long-term debt and uncertain interest coverage.
What is OPAL's revenue and growth?
OPAL Fuels Inc. reported revenue of $73.4M.
Does OPAL pay dividends?
OPAL Fuels Inc. does not currently pay dividends.
Where can I find OPAL SEC filings?
Official SEC filings for OPAL Fuels Inc. (CIK: 0001842279) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OPAL's EPS?
OPAL Fuels Inc. has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is OPAL's fundamental grade?
Based on our AI fundamental analysis in May 2026, OPAL Fuels Inc. has a C grade with 73% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OPAL stock overvalued or undervalued?
Valuation metrics for OPAL: ROE of -32.1% (sector avg: 16%), net margin of -3.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is OPAL's AI grade for 2026?
Our dual AI analysis gives OPAL Fuels Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OPAL's free cash flow?
OPAL Fuels Inc.'s operating cash flow is $12.9M, with capital expenditures of $24.4M. FCF margin is -15.6%.
How does OPAL compare to other Services stocks?
Vs Services sector averages: Net margin -3.6% (avg: 10%), ROE -32.1% (avg: 16%), current ratio 2.20 (avg: 1.5).
Is OPAL Fuels Inc. carrying too much debt?
OPAL has a debt-to-equity ratio of 55.55x, which is above the Services sector average of 0.7x. However, the current ratio of 2.20 suggests adequate short-term liquidity.