Montauk Renewables Inc. Common Stock (MNTK)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Montauk as a cyclical specialty chemicals business, though it is really a biogas producer. The latest filings show fiscal Q2 2026, the quarter ended 2026-06-30, revenue of $54.0M and net income of $226,000, or $0.00 diluted EPS; that is an improvement from fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $45.1M and net loss was $5.5M. But the annual record is less encouraging: FY2023 revenue $174.9M and net income $14.9M, FY2024 revenue $175.7M and net income $9.7M, FY2025 revenue $176.4M and net income $1.7M. Revenue has been almost flat while profit has shrunk. The business does have an environmental purpose, capturing methane and converting it to RNG or electricity, but the financial returns are weak: FairStock calculations show ROE 3.05%, ROCE 0.67%, and negative trailing FCF of -$83.4M, a -24.9% FCF yield. The balance sheet shows D/E 0.59 and a low Altman Z-Score of 1.22. On valuation at the 2026-10-13 close of $2.35, P/B is 1.27, EV/EBITDA 11.33, and Graham Number $1.44, implying price is 63.19% above that conservative value. The Piotroski F-Score is 7/9, a positive sign, and PEG 0.45 hints at growth if profits normalize. But I prefer businesses that produce cash and earn high returns on capital. Montauk is not there yet. It is a speculative cyclical, not a conservative value compounder.

In plain English: Montauk Renewables turns methane from landfills and other sources into renewable natural gas and electricity. The business has grown sales lately but earns very little profit, burns cash, and its annual profit has fallen over the past three years. At $2.35, the stock looks expensive compared with recent earnings and conservative accounting value, though it trades near its book value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer