Cash generation is highly efficient with OCF/NI ratios frequently exceeding 2.0x, yet free cash flow remains unstable, swinging between 23.1% and 119.6% margins due to lumpy capital expenditures.
Generation Essentials Group (TGE) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Cash from Operations | 679.01M | 4.57M | 1.13M | -1.42M | 679.01M | 672.52M | 571.4M | 413.3M | 300.22M |
| Operating CF Margin % | - | 9.01% | 1.41% | -7.79% | 78.18% | 84.78% | 87.12% | 67.57% | 55.32% |
| Operating CF Growth % | 15.72% | 303.45% | 179.66% | -100.21% | 0.96% | 17.7% | 38.25% | 37.67% | - |
| Net Income | 248.81M | 46.37M | 19.06M | 23.72M | 248.81M | 137.13M | -128.73M | 33.79M | 44.31M |
| Depreciation & Amortization | 135.5M | 11.72M | 2.83M | 1.08M | 135.5M | 117.43M | 98.54M | 94.04M | 89.17M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 69.86M | 0 | 0 | 0 | 69.86M | 55.71M | 208.46M | 17.74M | -7.28M |
| Other Non-Cash Items | 233.57M | -48.61M | -17.43M | -22.97M | 233.57M | 319.64M | 350.69M | 219.91M | 161.39M |
| Working Capital Changes | -8.73M | -4.92M | -3.33M | -3.25M | -8.73M | 33.98M | 40.84M | 41.85M | 7.19M |
| Change in Receivables | 18K | -3.73M | -1.83M | -929K | 18K | -102.11M | -57.93M | 2.04M | -15.57M |
| Change in Inventory | 489.94M | 0 | 0 | 0 | 123.07M | 170.54M | 115.59M | -938K | -5.17M |
| Change in Payables | -2K | 924K | -1.44M | -1.64M | -2K | 112.47M | 84.73M | 10.15M | 9.89M |
| Cash from Investing | -287.28M | 3.31M | 6.7M | 247K | -287.28M | -987.21M | -898.54M | -595.54M | -899.43M |
| Capital Expenditures | -225.46M | -8K | 0 | 0 | 6K | -368.87M | -145.14M | -84.49M | -75M |
| CapEx % of Revenue | 25.96% | 0.02% | - | - | 0% | 46.5% | 22.13% | 13.81% | 13.82% |
| Acquisitions | 0 | 3.32M | 6.7M | 247K | 0 | -95M | -57.2M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -61.83M | 0 | 0 | 0 | -287.29M | -523.34M | -623.81M | -306.41M | -824.43M |
| Cash from Financing | -391.92M | 6.23M | -2.47M | 1.06M | -391.92M | 321.69M | 327.28M | 182.47M | 600.58M |
| Debt Issued (Net) | 0 | -2.04M | -589K | 5.3M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 4.7M | 133.04M | 1.87B | 320.38M |
| Other Financing | -391.92M | 8.27M | -1.88M | -4.24M | -391.92M | 321.69M | 327.28M | 182.47M | 600.58M |
| Net Change in Cash | -202K | 13.86M | 4.91M | -60K | -202K | 7M | 134K | 225K | 1.37M |
| Free Cash Flow | 453.55M | 4.56M | 1.13M | -1.42M | 679.01M | 303.65M | 426.25M | 328.81M | 225.22M |
| FCF Margin % | 52.22% | 9% | 1.41% | -7.79% | 78.18% | 38.28% | 64.99% | 53.76% | 41.5% |
| FCF Growth % | 49.37% | 302.74% | 179.66% | -100.21% | 123.62% | -28.76% | 29.64% | 46% | - |
| FCF per Share | 2.50 | 0.09 | 0.02 | -0.03 | 3.85 | 1.87 | 7.34 | 6.73 | 4.71 |
| FCF Conversion (FCF/Net Income) | 1.82x | 0.16x | 0.14x | -0.09x | 2.73x | 4.90x | -4.44x | 12.23x | 6.77x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying TGE stock.
Generation Essentials Group (TGE) generated $4.6M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Generation Essentials Group (TGE) generated $4.6M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Generation Essentials Group (TGE) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Project-based revenue volatility
Earnings Quality Decoupled from Cash
As reported in financial statements, TGE consistently generates operating cash flow significantly higher than net income, with OCF/NI ratios frequently exceeding 2.0x, which suggests that reported earnings are heavily influenced by non-cash accounting charges rather than pure operational cash generation.
The persistent gap between net income and operating cash flow indicates that TGE's accounting earnings may be conservative or heavily impacted by non-cash items like depreciation. Investors should monitor whether this divergence reflects genuine operational efficiency or merely the timing of project-based revenue recognition.
Volatile Free Cash Flow Generation
Based on TGE's reported figures, free cash flow margins exhibit extreme fluctuations, ranging from 23.1% to 119.6%, which underscores the inherent instability of a business model tied to the lumpy, project-based nature of movie production and high-end media cycles.
The lack of a stable FCF trajectory suggests that TGE's cash generation is highly sensitive to the timing of production milestones. This volatility makes it difficult to forecast long-term cash availability for reinvestment or shareholder returns without deeper insight into the production pipeline.
High Capital Intensity of Production
According to recent SEC filings, TGE's capital intensity is substantial, with CapEx/Revenue ratios occasionally exceeding 60%, reflecting the heavy upfront investment required to maintain its competitive position in the high-fashion and film production sectors.
The high level of capital expenditure relative to revenue suggests that TGE must continuously reinvest in its intellectual property to remain relevant. This heavy reliance on capital-intensive projects may limit the company's ability to generate consistent free cash flow during periods of lower production output.
Working Capital Swings Mask Liquidity
As indicated by historical data, TGE experiences significant working capital volatility, with quarterly changes swinging from -$26.6M to +$26.5M, which suggests that the company's cash position is highly susceptible to the timing of collections and production-related payables.
These erratic working capital movements imply that TGE's cash flow is frequently disrupted by the timing of project delivery and client payments. Analysts should investigate whether these swings are indicative of underlying collection inefficiencies or simply the natural rhythm of the entertainment production cycle.