BNRG

We rate Brenmiller Energy Ltd. (BNRG) as Avoid with a composite score of 27.6/100 at a current price of $1.27. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in investment (36th percentile) and stability (12th percentile), which together account for the majority of the composite score. Offsetting weakness in value (1th percentile) and quality (2th percentile) tempers our overall conviction. We assign a No Moat rating (20/100), High uncertainty, and Poor capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs; balance sheet deleveraging progress; valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is widening, which provides additional comfort in the durability of the competitive position.

Brenmiller Energy Ltd. holds a top-quartile position (#0 of 50) within the Construction sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 27.6/100 places it at rank #4658 in our full 7,333-stock universe. At $3M in market capitalization, Brenmiller Energy Ltd. is a small-cap player in the Construction space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue contraction of -100% combined with momentum at the 10th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.

Margin data is not available for Brenmiller Energy Ltd., which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.

At a current price of $1.27, Brenmiller Energy Ltd. is trading at a premium to fundamental value. Our value factor score of 1/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at P/B of 0.2x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.

We assign a High uncertainty rating to Brenmiller Energy Ltd.. Key risk factors include significant leverage (132% debt-to-equity), below-average price stability (12th percentile), weak quality scores (2th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: significant leverage (132% debt-to-equity); below-average price stability (12th percentile); weak quality scores (2th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 12th percentile and quality factor at the 2th percentile provide a quantitative summary of the overall risk landscape.

We identify limited risk mitigants at this time, which contributes to our high uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.

We rate Brenmiller Energy Ltd.'s capital allocation as Poor. Key concerns include low returns on equity (-265.9%), weak asset returns (ROA -100.1%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Brenmiller Energy Ltd. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, Brenmiller Energy Ltd. receives a Avoid rating with a composite score of 27.6/100 (rank #4658 of 7,333). Our quantitative framework assigns a No Moat (20/100, trend: widening), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 12/100.

Our analysis does not support a constructive view on Brenmiller Energy Ltd. at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.