Tantech Holdings Ltd

TANH

$21.20

+10.47%

2026-09-04 12:00:59 EDT+$2.01

Consumer Defensive

Household & Personal Products

NASDAQ

Active Trading

Tantech Holdings Ltd (TANH), a diversified enterprise established in 2001 and headquartered in Lishui, People's Republic of China, primarily operates through two ...

Fundamental Analysis of TANH

Key Strengths

Diversified portfolio across charcoal-derived consumer products and an EV/component segment, reducing dependence on a single product line

Brand presence and a differentiated raw material pathway (bamboo-derived charcoal and related byproducts like bamboo vinegar) that can support product differentiation

Risk Factors

Severe profitability deterioration/ongoing losses: net margin ~-80.9% and operating/EBIT margins ~-31.8% (TTM), with ROA and ROE strongly negative

Negative free cash flow (TTM), indicating the business is not currently generating sustainable cash to fund operations and growth

Profitability

Net Margin-80.88%

Operating Margin-31.82%

Valuation

P/E Ratio-0.02x

Current Ratio6.59

Efficiency

ROE-24.71%

ROA-25.02%

Fundamental Analysis of TANH

Tantech Holdings Ltd (NASDAQ: TANH) is a small-cap, China-based manufacturer and distributor with two operating divisions: (1) Consumer Products centered on bamboo-derived charcoal (including branded lines such as “Algold” and “Charcoal Doctor”) and related products (e.g., bamboo vinegar byproducts used in disinfectants, detergents, and agricultural applications), and (2) an Electric Vehicle (EV) segment supplying specialized vehicles and components. Despite the breadth of product categories and stated innovation/award history, the most recent trailing-twelve-month fundamentals provided show clear financial stress, with profitability deeply negative and cash generation weak. On valuation and profitability, the company’s reported net profit margin is about -80.9% (netProfitMarginTTM -0.809) and operating/EBIT margins are also sharply negative (operatingProfitMarginTTM -0.318; ebitMarginTTM -0.318). Returns are similarly depressed: ROA is approximately -25% and ROE about -24.7% (returnOnAssetsTTM -0.25; returnOnEquityTTM -0.247). Free cash flow is negative (freeCashFlowToFirmTTM -5.56M; freeCashFlowToEquityTTM -2.31M), indicating that the business is not currently self-funding growth or deleveraging. Balance-sheet indicators show liquidity ratios that appear very high (currentRatioTTM 6.59; quickRatioTTM 6.569), and leverage is not excessive on a book basis (debtToEquityRatioTTM ~0.042; debtToAssetsRatioTTM 0.038). However, several quality flags temper this: days sales outstanding are extremely high (daysOfSalesOutstandingTTM ~359.7), the operating cash flow ratio is negative (operatingCashFlowRatioTTM -0.518), and solvency ratio is negative (solvencyRatioTTM -2.264). These patterns suggest that liquidity may be concentrated and/or tied up in receivables rather than translating into cash earnings. Given the deeply negative earnings and cash flow, the key question for long-term investors is whether management can stabilize demand, improve working capital conversion, and return to sustainable profitability—particularly in a micro-cap context where financing risk and volatility are typically elevated. Until earnings power and cash generation improve, the stock’s apparent low pricing multiples are not sufficient as an intrinsic-value signal; fundamentals indicate a turnaround risk profile rather than a stable compounder.

Key Strengths of TANH

Diversified portfolio across charcoal-derived consumer products and an EV/component segment, reducing dependence on a single product line
Brand presence and a differentiated raw material pathway (bamboo-derived charcoal and related byproducts like bamboo vinegar) that can support product differentiation
Strong reported liquidity metrics (current ratio and quick ratio are high), which may provide runway if capital is managed conservatively
Low leverage on available measures (debt-to-equity and debt-to-assets are relatively small), which can reduce refinancing pressure versus highly levered peers
History of certifications and awards (e.g., ISO certifications and national/provincial honors) that can support credibility with industrial and institutional buyers
Management/industry positioning in specialty applications (air purification, deodorization, humidification, agricultural/cleaning uses) that may offer niche demand

Risk Factors of TANH

Severe profitability deterioration/ongoing losses: net margin ~-80.9% and operating/EBIT margins ~-31.8% (TTM), with ROA and ROE strongly negative
Negative free cash flow (TTM), indicating the business is not currently generating sustainable cash to fund operations and growth
Working capital stress signals: extremely high days sales outstanding (~360 days) and a long operating cycle, which can lead to cash conversion delays and potential credit risk
Micro-cap liquidity and volatility risk (typical for NASDAQ micro-caps), which can magnify drawdowns and limit exit options
China-specific regulatory, policy, and macro risks (compliance, evolving oversight, and potential impacts on operations and reporting)
Execution/turnaround risk in the EV segment and consumer segment simultaneously—margin compression or demand weakness could prolong losses
Quality of earnings concerns: the provided metrics include weak income quality (incomeQualityTTM 0.188) and negative cash flow coverage ratios
Accounting/reporting and governance risk common to smaller foreign issuers listed in the US, which can affect investor confidence

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$5.48M

-0.0x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin18.56%

Net Profit Margin-80.88%

Debt/Equity Ratio0.04

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of TANH

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of TANH

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	-227.32%	—	—	Flat
Operating Margin	—	-86.72%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of TANH

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	6.590	—	—	Flat
Quick Ratio	—	6.569	—	—	Flat
Debt / Equity	—	0.042	—	—	Flat

Valuation of TANH

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	-0.01x	—	—	Flat
P/B	—	0.02x	—	—	Flat

Supply Chain of TANH

RELATIONS

Upstream

Local bamboo charcoal processors (Zhejiang Province, PRC)Automotive parts & components suppliers (for Shangchi Automobile)Packaging material suppliersBamboo farms and harvesters (Zhejiang, Fujian provinces, PRC)Industrial carbonization equipment manufacturers

Downstream

PRC third-party distributors (Customer A - ~27% of receivables)PRC third-party distributors (Customer B - ~25% of receivables)PRC third-party distributors (Customer C - ~18% of receivables)Heidi Enterprise GroupChina De Ruixiang Industrial Co., Ltd.Ecuador bus customer (school buses)Nigeria midibus customerLocal EV distributors (PRC)Restaurant & food service industry customers (via EPakia Inc.)

Proxies

China Bambro Medical Co., Ltd.UnconfirmedBYD Company LimitedHKEx:1211CATL (Contemporary Amperex Technology Co. Ltd.)SZSE:300750Sealed Air CorporationNYSE:SEE

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Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer