Fuelcell Energy (FCEL) AI Stock Analysis

• Market Cap: $125.58M
• Dividend Yield: N/A
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 48.62%
• EPS Growth: 0.23%
• Country: US
• Employees: 584
• Sector: Industrials
• Sector Strength: 86
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.79
• Shares Outstanding: 22,790,932
• 10 Day Avg. Volume: 1,963,329
• 30 Day Avg. Volume: 2,047,712
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.79
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: -5.36
• Enterprise Value/Ebitda: -0.42
• 1Y Price Target: $7.24
• Price Target Upside: 29.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 51 Neutral
• Price Target: $5.50 ▼(-1.96%Downside)

FuelCell Energy's overall stock score reflects significant financial challenges marked by ongoing losses and negative cash flows. While restructuring efforts and strategic partnerships show potential, current operational inefficiencies and valuation concerns weigh heavily on the outlook. Technical indicators offer limited optimism, with mixed momentum signals and no dividend support.

Positive Factors

Cost Management

EBITDA estimates have been increased, reflecting higher service revenues and a planned reduction in operating expenses.

Revenue Projections

Revenue estimates have been raised due to higher sales of carbonate fuel cells and increased service revenue.

Strategic Partnerships

The partnership with Diversified Energy and TESIAC targets a 360MW distributed power project for data centers in key states facing grid constraints.

Negative Factors

Financial Performance

FuelCell reported 1Q25 revenue of $19mn, missing the Street's expectations, despite improving year-over-year.

Profitability Concerns

The recommendation remains Underweight despite positive revisions, due to ongoing challenges in achieving profitability.

Revenue and EBITDA

Revenue and EBITDA for FQ1'25 missed consensus expectations, leading to a lowered Underweight rating due to uncertainty around achieving positive EBITDA margins.

Fuelcell Energy Business Overview & Revenue Model

Company Description

FuelCell Energy, Inc. is a global leader in designing, manufacturing, operating, and servicing Direct FuelCell power plants. The company is primarily engaged in providing clean, efficient, and reliable fuel cell solutions for various applications, including utilities, industrial operations, and commercial enterprises. FuelCell Energy's offerings cater to the growing demand for sustainable energy solutions, enabling customers to generate clean power on-site while reducing carbon emissions.

How the Company Makes Money

FuelCell Energy generates revenue through the sale and long-term service agreements of its fuel cell power plants. The company's key revenue streams include product sales, which involve selling fuel cell power plant equipment, and service agreements, which cover maintenance and operational support for installed systems. Additionally, FuelCell Energy earns income from power purchase agreements (PPAs), where it owns and operates power plants and sells the electricity generated to customers. Strategic partnerships and collaborations with government entities, utility companies, and industrial clients also play a significant role in boosting the company's market presence and revenue growth.

Fuelcell Energy Financial Statement Overview

Summary

Fuelcell Energy faces significant financial difficulties, marked by persistent losses and negative cash flow. The company's strong equity position is overshadowed by increasing debt and operational inefficiencies. These issues underscore the necessity for strategic improvements to ensure future viability.

Income Statement

The income statement shows persistent losses, with negative gross profit and net income over the years. Revenue growth is inconsistent, with a recent decline in TTM revenue compared to previous periods. Margins are severely negative, indicating challenges in covering costs and achieving profitability.

Balance Sheet

The balance sheet reflects a relatively strong equity position compared to total assets, suggesting financial stability. However, the debt levels are increasing, which could pressure future financial flexibility. The company’s ability to cover its debts solely with equity is a positive aspect.

Cash Flow

Cash flow analysis shows negative free cash flow, indicating that the company is consuming more cash than it generates. Operating cash flow is also negative, reflecting operational challenges. Financing activities have been a primary source of cash, which may not be sustainable in the long term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.42M	112.13M	123.39M	130.48M	69.58M	70.87M
Gross Profit	-31.76M	-35.92M	-10.54M	-29.57M	-15.64M	-7.72M
EBITDA	-95.64M	-110.87M	-74.85M	-118.75M	-73.79M	-54.99M
Net Income	-141.25M	-129.21M	-107.57M	-147.23M	-101.03M	-89.11M
Balance Sheet
Total Assets	883.84M	944.12M	955.52M	939.72M	875.25M	523.54M
Cash, Cash Equivalents and Short-Term Investments	176.97M	257.26M	353.71M	458.06M	432.21M	149.87M
Total Debt	150.42M	156.47M	139.25M	104.29M	97.84M	182.77M
Total Liabilities	205.05M	216.66M	195.22M	185.33M	169.92M	269.13M
Stockholders Equity	669.03M	716.78M	742.35M	744.25M	702.29M	254.41M
Cash Flow
Free Cash Flow	-172.94M	-200.63M	-232.61M	-158.82M	-143.67M	-68.69M
Operating Cash Flow	-133.11M	-152.91M	-140.25M	-112.17M	-70.44M	-36.78M
Investing Cash Flow	5.27M	-60.05M	-192.37M	-46.65M	-73.23M	-32.52M
Financing Cash Flow	94.86M	122.15M	151.07M	180.58M	411.91M	221.67M

Fuelcell Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCEL, the sentiment is Negative. The current price of 5.61 is below the 20-day moving average (MA) of 6.03, above the 50-day MA of 5.00, and below the 200-day MA of 7.83, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 12.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCEL.

Fuelcell Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$10.56B	15.51	5.57%	1.96%	2.71%	-26.32%
CBAT	58 Neutral	$107.03M	295.00	0.31%	―	-30.85%	-95.67%
OPTT	52 Neutral	$85.44M	―	-80.51%	―	23.98%	52.50%
FCEL	51 Neutral	$125.58M	―	-20.52%	―	48.62%	0.23%
CETY	44 Neutral	$15.85M	―	-90.36%	―	-87.59%	51.14%
TPIC	40 Underperform	$43.60M	―	77.71%	―	1.71%	-3.55%

Fuelcell Energy Corporate Events

FuelCell Energy Announces Executive Vice President Departure

FuelCell Energy, Inc. announced the termination of its employment relationship with Michael Lisowski, Executive Vice President of Strategic Partnerships, effective July 4, 2025. As part of the separation agreement, Lisowski will receive a severance package including a $400,000.12 payment, stock unit vesting, and potential performance-based incentives, impacting the company’s executive structure and stakeholder interests.

The most recent analyst rating on (FCEL) stock is a Sell with a $30.00 price target. To see the full list of analyst forecasts on Fuelcell Energy stock, see the FCEL Stock Forecast page.

FuelCell Energy Announces Restructuring to Boost Profitability

FuelCell Energy reported a 67% increase in revenue for the second quarter of fiscal 2025, reaching $37.4 million, despite a gross loss increase to $9.4 million. The company announced a restructuring plan to reduce operating expenses by 30% and focus on its carbonate platform, aiming to accelerate profitability and expand its presence in the data center market through strategic partnerships.

The most recent analyst rating on (FCEL) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Fuelcell Energy stock, see the FCEL Stock Forecast page.

FuelCell Energy Appoints Michael Hill as EVP and CCO

FuelCell Energy announced the appointment of Michael Hill as Executive Vice President and Chief Commercial Officer, effective May 5, 2025. Hill’s previous experience includes serving as President of Global Sales at Danfoss Power Solutions. His employment agreement includes a base salary of $450,000 and a target annual bonus equal to his base salary. The agreement outlines severance terms in case of termination, including payments and COBRA premium coverage, with additional provisions for change in control scenarios.

FuelCell Energy Announces Executive Departure Agreement

On April 23, 2025, FuelCell Energy, Inc. decided to terminate the employment of Mark Feasel, its Executive Vice President and Chief Commercial Officer, without cause, effective May 2, 2025. Subsequently, on April 28, 2025, the company and Mr. Feasel agreed on a separation package that includes a severance payment, accelerated stock vesting, and other benefits, contingent upon compliance with certain conditions.

FuelCell Energy Approves New Incentive Plan at Annual Meeting

At the 2025 Annual Meeting of Stockholders, held between April 3 and April 17, FuelCell Energy, Inc. announced the approval of the Fifth Amended and Restated Incentive Plan by its stockholders. Additionally, the meeting saw the re-election of eight directors, approval of executive compensation, and ratification of KPMG LLP as the independent auditor for the fiscal year ending October 31, 2025. These decisions are expected to impact the company’s governance and operational strategies positively, reinforcing its commitment to sustainable energy solutions.