OPAL · Nasdaq · CIK 1842279
OPAL Fuels Inc.
Stage 1 · Must have
1/7
6 of 7 needed
Stage 2 · Refinement
45%
70% needed
Verdict
Financially weak
Rules v1.0.0
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Stage 1 · Must have
1 of 7 passed · at least 6 needed
Debt / Equity
Financial debt compared with shareholders' equity
Failn/aThreshold < 1FY 2025< 1
Shareholders' equity is zero or negative in the 2025 report, so liabilities exceed assets on the books. The debt-to-equity ratio has no meaning in that case and the check counts as not met.
S1.1 · Source: 2025 annual report, SEC EDGAR · Original filing
Operating margin vs. industry
Operating profit as a share of revenue, compared with peers (no gross profit reported)
Fail2.1%Threshold >= 23.0% (median 22.0% + 1 pp)FY 2025>= 23.0% (median 22.0% + 1 pp)
Operating margin: 2.1% in 2025, against a median of 22.0% for Utilities (59 companies). The company does not report gross profit, so its operating margin is compared instead. It keeps less of each unit of revenue after running costs than the bar set by its peers.
Compared with 59 companies in Utilities. Peer median 22.0%.
S1.2 · Source: 2025 annual report, SEC EDGAR · Original filing
Operating cash flow vs. net income
Cash from operations over reported profit, last 3 years
Fail59.7%Threshold > 100% (3-year sums)FY 2025> 100% (3-year sums)
Operating cash flow vs. net income: 60% over 2023-2025. Less cash comes in than the profit reported, which can mean money tied up in inventory and receivables or earnings that exist mostly on paper.
S1.3 · 3 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing
Free cash flow vs. net income
Cash left after investment over reported profit, last 3 years
Fail-115.7%Threshold > 80% (3-year sums); 70-80% is closeFY 2025> 80% (3-year sums); 70-80% is close
Free cash flow vs. net income: -116% over 2023-2025. The company turns only part of its profit into cash it can actually use, which often means heavy reinvestment or profits that exist mostly on paper.
S1.4 · 3 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing
ROIC stable and rising
Return on invested capital over 5 years
No datan/aThreshold latest >= 5-year median - 1 pp and >= first year + 0.5 ppFY 2025latest >= 5-year median - 1 pp and >= first year + 0.5 pp
This check needs at least 3 years of return on invested capital, and only 2 are available. It is left out of the score until more annual reports are on file.
S1.5 · Source: 2025 annual report, SEC EDGAR · Original filing
Return on equity vs. industry
Net income over shareholders' equity, compared with peers
No datan/aThreshold >= 10.4% (median 9.4% + 1 pp)FY 2025>= 10.4% (median 9.4% + 1 pp)
Shareholders' equity is zero or negative in the 2025 report, so return on equity has no meaning. This check is left out of the score.
S1.6 · Source: 2025 annual report, SEC EDGAR · Original filing
Positive EBITDA
Operating profit before depreciation and amortization
Pass$29.9MThreshold > 0FY 2025> 0
EBITDA: USD 29.9 million in 2025. The core business makes money before depreciation, interest and tax, so day-to-day operations pay for themselves.
S1.7 · Source: 2025 annual report, SEC EDGAR · Original filing
Company snapshot
Market dataMarket data widgets by TradingView. Market prices are not part of the EdgeScore model.
Stage 2 · Refinement
5 of 11 applicable passed · at least 70% needed
SG&A stable or falling
Overhead costs as a share of revenue, over 5 years
Pass18.3%Threshold <= 18.8% (median 18.3% + 0.5 pp)FY 2025<= 18.8% (median 18.3% + 0.5 pp)
SG&A: 18.3% of revenue in 2025, against a median of 18.3% over 2021-2025. Overhead costs are not growing faster than the business, a sign of cost discipline.
S2.1 · 5 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing
Interest coverage
Operating income over interest expense
Fail0.3xThreshold > 5FY 2025> 5
Interest coverage: 0.3x in 2025, at or below 5. A large part of operating income goes to interest, leaving less room if profits fall.
S2.2 · Source: 2025 annual report, SEC EDGAR · Original filing
Net margin vs. industry
Net income as a share of revenue, compared with peers
Fail10.4%Threshold >= 13.6% (median 12.6% + 1 pp)FY 2025>= 13.6% (median 12.6% + 1 pp)
Net margin: 10.4% in 2025, against a median of 12.6% for Utilities (59 companies). After all costs, interest and tax, the company keeps less of its revenue as profit than the bar set by its peers.
Compared with 59 companies in Utilities. Peer median 12.6%.
S2.3 · Source: 2025 annual report, SEC EDGAR · Original filing
ROA vs. industry
Net income over total assets, compared with peers
Pass3.8%Threshold >= 3.6% (median 2.6% + 1 pp)FY 2025>= 3.6% (median 2.6% + 1 pp)
Return on assets: 3.8% in 2025, against a median of 2.6% for Utilities (59 companies). The company produces more profit from the assets it holds than most of its peers, a sign that its resources are used efficiently.
Compared with 59 companies in Utilities. Peer median 2.6%.
S2.4 · Source: 2025 annual report, SEC EDGAR · Original filing
Current ratio
Current assets over current liabilities
Fail1.18Threshold > 1.5FY 2025> 1.5
Current ratio: 1.18 in 2025, at or below 1.5. The cushion of short-term assets over bills due within a year is thin, although some business models run this way on purpose.
S2.5 · Source: 2025 annual report, SEC EDGAR · Original filing
Total assets growing, 5 years
Average yearly growth of total assets
Pass26.0%Threshold average growth > 0%, at most 1 year with a drop over 3%FY 2025average growth > 0%, at most 1 year with a drop over 3%
Total assets grew 26.0% a year on average over 5 annual reports, with 0 years of decline beyond 3%. The company has been building its asset base steadily.
S2.6 · 5 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing
Free cash flow CAGR, 5 years
Average yearly growth of free cash flow
Failn/aThreshold >= 5% a yearFY 2025>= 5% a year
Free cash flow was negative or zero in 2021, so a growth rate cannot be measured from 2021 to 2025. The check counts as not met.
S2.7 · 5 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing
Quick ratio
Current assets excluding inventory over current liabilities
Pass1.18Threshold > 1FY 2025> 1
Quick ratio: 1.18 in 2025. Even without counting inventory, the company can cover the bills due within a year.
S2.8 · Source: 2025 annual report, SEC EDGAR · Original filing
Net debt / EBITDA
Years of operating profit needed to repay net debt
Fail11.3xThreshold < 3FY 2025< 3
Net debt / EBITDA: 11.3x in 2025, at or above 3. Repaying debt net of cash would take three or more years of operating profit, a heavy load if earnings dip.
S2.9 · Source: 2025 annual report, SEC EDGAR · Original filing
Positive free cash flow
Operating cash flow minus capital expenditure
Fail-$34.2MThreshold > 0FY 2025> 0
Free cash flow: -USD 34.2 million in 2025. Investment used up more cash than operations brought in, so the gap had to be covered from reserves or funding.
S2.10 · Source: 2025 annual report, SEC EDGAR · Original filing
Revenue CAGR, 5 years
Average yearly growth of revenue
Pass20.4%Threshold >= 7% a yearFY 2025>= 7% a year
Revenue grew 20.4% a year from 2021 to 2025. Sales are expanding at a solid pace.
S2.11 · 5 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing
Indicator guide
- Debt / Equity
- Financial debt divided by shareholders' equity shows how much of the business is funded by lenders. Below 1 means owners fund more of the company than creditors do.
- Gross margin vs. industry
- Gross margin is the share of revenue left after the direct cost of products and services. Beating the industry median by at least one point suggests pricing power or a cost advantage.
- Operating margin vs. industry
- Used instead of gross margin when a company does not report gross profit. It is the share of revenue left after all operating costs, compared with the same peer group.
- Operating cash flow vs. net income
- Compares three years of operating cash flow with three years of reported profit. Above 100% means accounting profit is fully backed by cash coming in.
- Free cash flow vs. net income
- Free cash flow is operating cash flow minus capital spending, compared with profit over three years. Above 80% means most of the profit is cash the company can actually use.
- ROIC stable and rising
- Return on invested capital measures the profit earned on all money invested in the business, by owners and lenders. The latest value must hold near its five-year median and be higher than five years ago.
- Return on equity vs. industry
- Return on equity is net income divided by shareholders' equity. It is compared with the industry median because normal levels differ a lot between industries.
- Positive EBITDA
- EBITDA is operating profit before interest, taxes, depreciation and amortization. A positive value means the core business earns money before financing and accounting charges.
- SG&A stable or falling
- Selling, general and administrative costs as a share of revenue show how heavy the overhead is. Staying at or below the five-year median means costs are under control.
- Interest coverage
- Operating income divided by interest expense shows how easily the company pays its lenders. Above 5 leaves a wide safety margin if profits fall.
- Net margin vs. industry
- Net margin is the share of revenue that ends up as net profit. It is compared with the industry median to account for different business models.
- ROA vs. industry
- Return on assets is net income divided by total assets. It shows how efficiently the company turns everything it owns into profit, compared with its peers.
- Current ratio
- Current assets divided by current liabilities measures the ability to pay bills due within a year. Above 1.5 indicates a comfortable short-term buffer.
- Total assets growing, 5 years
- Checks that total assets grew on average over five years, with at most one sharp annual decline. The allowed decline depends on the sector, and the check is skipped for software companies.
- Free cash flow CAGR, 5 years
- The average yearly growth rate of free cash flow over five years. At least 5% a year shows the cash a business produces is growing.
- Quick ratio
- Like the current ratio, but without inventory, which can be slow to turn into cash. Above 1 means short-term debts are covered by the most liquid assets.
- Net debt / EBITDA
- Financial debt minus cash, divided by EBITDA, estimates how many years of operating earnings would repay the debt. Below 3 is generally considered manageable.
- Positive free cash flow
- Free cash flow in the latest year must be above zero. It means operations fund investment without new debt or new shares.
- Revenue CAGR, 5 years
- The average yearly growth rate of revenue over five years. At least 7% a year points to a business that keeps expanding.
Data source: SEC EDGAR, company annual reports. Original 10-K (FY 2025). Last updated Oct 29, 2026. Latest fiscal year ends Dec 31, 2025.
How the score works: EdgeScore methodology. Rules version 1.0.0.
For information and education only. Not investment advice. Data may contain errors.