Gevo Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>GEV</div>
GEVO -- USA Stock  

USD 10.86  4.46  69.69%

While some millenniums are indifferent towards basic materials space, it makes sense to outline Gevo Inc. Why are we still confident in anticipation of a complete recovery. Is current Gevo Inc value sustainable? We will go over the entity valuation drivers to give you a better outlook on taking a position in it.
Published over three weeks ago
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Is Gevo (NASDAQ:GEVO) valuation real?
The company currently holds 14.04 M in liabilities with Debt to Equity (D/E) ratio of 0.1, which may suggest the firm is not taking enough advantage from borrowing. We provide advice to complement the regular expert consensus on Gevo. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Gevo Inc using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Gevo Inc based exclusively on its fundamental and basic technical indicators. By analyzing Gevo's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Gevo's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gevo. We calculate exposure to Gevo's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Gevo's related companies.

Gevo Inc Investment Alerts

Gevo investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Gevo Inc performance across your portfolios.Please check all investment alerts for Gevo

Gevo Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Gevo value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Gevo competition to find correlations between indicators driving the intrinsic value of Gevo.

How Gevo utilizes its cash?

To perform a cash flow analysis of Gevo, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Gevo is receiving and how much cash it distributes out in a given period. The Gevo cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Gevo Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (25.86 Million)

Payment of 9834 shares by Smull L Lynn of Gevo subject to Rule 16b-3

Legal trades by Gevo insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Gevo insider trading alert for payment of common stock by Smull L Lynn, Chief Financial Officer, on 17th of December 2020. This event was filed by Gevo Inc with SEC on 2020-12-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Gevo Indicators

The latest price rise of Gevo may raise some interest from institutional investors. The stock closed today at a share price of 3.70 on 108,231,442 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 10.97. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Gevo Inc partners.
 2017 2018 2019 2020 (projected)
Receivables1.05 M526 K1.14 M1.49 M
Inventories4.36 M3.17 M3.2 M3.99 M

Margins Breakdown

Gevo profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Gevo itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Gevo profit margins.
Operating Margin(65.6)
EBITDA Margin(0.84)
Gross Margin(0.51)
Profit Margin(1.26)

Gevo Average Assets is quite stable at the moment. Gevo Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The latest value of Gevo Earnings Before Interest Taxes and Depreciation Amortization EBITDA is -20,741,684. Furthermore, Gevo Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The latest value of Gevo Earnings Before Interest Taxes and Depreciation Amortization USD is -20,741,684. Gevo Average Assets is increasing over the last 8 years. The latest value of Gevo Average Assets is 110,171,566. Gevo Earnings Before Interest Taxes and Depreciation Amortization EBITDA is quite stable at the moment. Furthermore, Gevo Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment.

Gevo implied volatility may change after the rise

Kurtosis is down to 9.69. It may entail a possible volatility slide. Gevo Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Gevo Inc independently to ensure intended market timing strategies are aligned with expectations about Gevo volatility.

The Bottom Line

Whereas some other companies within the specialty chemicals industry are still a little expensive, even after the recent corrections, Gevo may offer a potential longer-term growth to institutional investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor sell any shares of Gevo at this time. The Gevo Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gevo.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Gevo Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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