Tecogen Inc. (TGEN – $3.51) designs, manufactures and sells industrial and commercial CHP (Combined Heat & Power), or cogeneration, systems that produce combinations of electricity, hot water, and air conditioning. It’s a well-established Company, as it has already shipped over 2,500 units, some of which have been operating for more than 25 years.
Tecogen couldn’t have started 2017 in a better way. For its first quarter, ended March 31, 2017, the Company reported revenue of $6,846,767 compared to $5,075,515 for the same period in 2016, an astonishing increase of 34.9%.
Net income for the quarter ended March 31, 2017 was $44,787 or $0.00 per diluted share, compared to a loss of $893,168 or $0.05 per diluted share for the comparable period last year. Another excellent achievement, especially knowing that this is Tecogen’s third straight quarter of profitability.
The Company’s sales backlog of equipment and installations currently stands at $17.5 million driven by strong traction in the InVerde product line. The number is well above Tecogen’s goal of maintaining sales backlog above $10 million.
The merger between Tecogen and American DG Energy is now complete, creating a vertically integrated clean energy company with strong recurring revenues, which will supplement Tecogen’s existing revenues. This will add steady revenue with good margins to the financials of Tecogen, helping to offset some of the peaks and valleys of products sales.
We expect 2017 to be a very successful year for the Company. This is clearly an exciting time for Tecogen and its shareholders.
Based on the intrinsic value of Tecogen’s shares derived from our model, we reiterate our buy recommendation for Tecogen Inc. with a price target of $9.44, which is 169% above today’s stock price.
|Download the first quarter 2017 Tecogen Inc. Company Report.|
|Smallcaps.us Advice: Buy||Price Target: $8.41||Latest Company Report (pdf)|
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