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Fuelcell Energy (FCEL)
NASDAQ:FCEL
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Fuelcell Energy
(NASDAQ:FCEL)
45Neutral
Positive Factors
Cost Management
Cost-cutting measures are beginning to show results, with projected reductions in R&D and capex expenses for FY2025.
Market Opportunities
Data centers represent a potential opportunity for FCEL due to the ability to deliver power quickly and the demand for low emission solutions.
Valuation
FuelCell has a market cap that is significantly lower than its net cash, suggesting potential hidden value in its stock.
Negative Factors
Financial Performance
Revenue and EBITDA for FQ1'25 missed consensus expectations, leading to a lowered Underweight rating due to uncertainty around achieving positive EBITDA margins.
Growth Uncertainty
The company continues to report losses, and there are concerns about cash usage and the need to see promised growth manifest.
Revenue
Product revenue was significantly lower than expected, contributing to a negative outlook.
Fuelcell Energy (FCEL) vs. S&P 500 (SPY)
Market Cap
$94.30M
Dividend YieldN/A
Average Volume (3M)741.23K
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth11.09%
EPS Growth0.41%
CountryUS
Employees584
SectorIndustrials
Sector Strength64
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-7.81
Shares Outstanding21,143,772
10 Day Avg. Volume663,798
30 Day Avg. Volume741,228
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.95
Price to Cash Flow (P/CF)-0.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.80Price Target Upside124.49% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering6
Fuelcell Energy Business Overview & Revenue Model
Company DescriptionFuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation. It offers SureSource1500, a 1.4-megawatt (MW) platform; SureSource 3000, a 2.8 MW platform; SureSource 4000, a 3.7 MW platform; SureSource 250, a 250- kilowatt (kW) platform; SureSource 400, a 400-kW platform; and SureSource Hydrogen, a 2.3 MW platform that is designed to produce up to 1,200 kilograms of hydrogen per day for multi-megawatt utility, microgrid, and distributed hydrogen applications, as well as on-site heat and chilling applications. It also provides SureSource Capture system that separates and concentrates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities; solid oxide fuel cell/solid oxide electrolysis cell stack technology. The company's SureSource power plants generate clean electricity, usable heat, water, and hydrogen. In addition, it provides engineering, procurement, and construction services; project financing services; and real-time monitoring and remote operation, online support system, preventative maintenance, parts and supplies, on-site and classroom training, and power plant refurbishment/recycling services, as well as technical services in the areas of plant operation and performance, and fuel processing. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, microgrids, food and beverage, and commercial and hospitality. The company primarily operates in the United States, South Korea, England, Germany, and Switzerland. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
How the Company Makes MoneyFuelCell Energy makes money primarily through the sale and servicing of its fuel cell power plants. The company's revenue model includes direct sales of fuel cell systems, long-term service agreements, and power purchase agreements (PPAs) where the company sells the electricity generated by its systems to customers. Additionally, FuelCell Energy earns income from government contracts and strategic partnerships aimed at advancing fuel cell technology and expanding its market reach. Key revenue streams are derived from its SureSource power plants, which are utilized for distributed power generation, and from providing ongoing maintenance and operational services to ensure optimal performance of installed systems.
Fuelcell Energy Financial Statement Overview
Summary
Fuelcell Energy faces significant financial challenges, with declining revenues and persistent net losses affecting all financial statements. While leverage is low, indicating conservative financial management, the company struggles with profitability and cash flow generation. The negative growth trends and high costs relative to revenues pose risks to financial stability and require strategic improvements for recovery.Income Statement
Fuelcell Energy's income statement shows declining revenues over the years, with a TTM revenue of $114.44 million compared to $130.48 million in 2022. The company has negative profitability metrics, such as a negative gross profit margin and net profit margin, indicating that costs exceed revenues. The EBIT and EBITDA margins are also negative, showing ongoing operational challenges. The revenue growth rate is negative, reflecting a contraction in sales.40
Negative
Balance Sheet
The balance sheet reflects a relatively low debt-to-equity ratio, indicating conservative leverage levels, which is positive for financial stability. However, the return on equity is negative due to net losses. The equity ratio is above 50%, suggesting a strong reliance on equity financing. The declining trend in stockholders' equity from $744.25 million in 2022 to $635.21 million TTM highlights potential risks.45
Neutral
Cash Flow
Fuelcell Energy's cash flow statement reveals negative operating cash flow and free cash flow, pointing to cash flow challenges. The free cash flow has shown volatility with a TTM figure of -$188.88 million. The operating cash flow to net income ratio is negative, further emphasizing difficulties in generating positive cash flows from operations.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 114.44M | 112.13M | 123.39M | 130.48M | 69.58M | 70.87M | Gross Profit |
| -29.40M | -35.92M | -10.54M | -29.57M | -15.64M | -7.72M | EBIT |
| -148.86M | -158.49M | -136.08M | -143.72M | -64.90M | -39.17M | EBITDA |
| -97.24M | -110.87M | -74.85M | -118.75M | -73.79M | -54.99M | Net Income Common Stockholders |
| -135.34M | -129.21M | -107.57M | -147.23M | -101.03M | -89.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 45.49M | 257.26M | 353.71M | 458.06M | 432.21M | 149.87M | Total Assets |
| 150.53M | 944.12M | 955.52M | 939.72M | 875.25M | 523.54M | Total Debt |
| 5.03M | 25.63M | 139.25M | 104.29M | 97.84M | 182.77M | Net Debt |
| -15.44M | -134.67M | -110.71M | -353.77M | -334.37M | 32.91M | Total Liabilities |
| 125.99M | 216.66M | 195.22M | 185.33M | 169.92M | 269.13M | Stockholders Equity |
| 8.35M | 656.92M | 742.35M | 744.25M | 702.29M | 254.41M |
| Cash Flow | Free Cash Flow | ||||
| -188.88M | -200.63M | -232.61M | -158.82M | -143.67M | -68.69M | Operating Cash Flow |
| -140.35M | -152.91M | -140.25M | -112.17M | -70.44M | -36.78M | Investing Cash Flow |
| -154.30M | -60.05M | -192.37M | -46.65M | -73.23M | -32.52M | Financing Cash Flow |
| 106.42M | 122.15M | 151.07M | 180.58M | 411.91M | 221.67M |
Fuelcell Energy Technical Analysis
Negative
3.92
Price Trends
6.32
Negative
8.10
Negative
10.96
Negative
Market Momentum
-0.64
Positive
28.28
Positive
13.41
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 3.92 is below the 20-day moving average (MA) of 5.26, below the 50-day MA of 6.32, and below the 200-day MA of 10.96, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 28.28 is Positive, neither overbought nor oversold. The STOCH value of 13.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCEL.
Fuelcell Energy Risk Analysis
Fuelcell Energy disclosed 40 risk factors in its most recent earnings report. Fuelcell Energy reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fuelcell Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $60.57M | 5.37 | 10.06% | ― | -13.61% | ― | |
62 Neutral | $7.16B | 12.21 | 3.08% | 3.43% | 3.62% | -14.48% | |
45 Neutral | $94.30M | ― | -18.96% | ― | 11.09% | 0.41% | |
45 Neutral | $20.17M | ― | -161.00% | ― | -54.59% | -504.44% | |
44 Neutral | $60.05M | ― | -80.51% | ― | 23.98% | 52.50% | |
41 Neutral | $34.27M | ― | 77.71% | ― | -8.18% | -20.81% |
* Industrials Sector Average
Performance Comparison
FCEL
Fuelcell Energy
3.92
-32.38
-89.20%
CBAT
CBAK Energy Technology
0.71
-0.25
-26.04%
OPTT
Ocean Power Technologies
0.34
0.09
36.00%
TPIC
TPI Composites
0.68
-2.10
-75.54%
CETY
Clean Energy Technologies
0.40
-1.24
-75.61%
RAYA
Erayak Power Solution Group Incorporation Class A
1.25
0.69
123.21%
Fuelcell Energy Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -38.07% | Next Earnings Date: Jun 5, 2025
Earnings Call Sentiment Positive
The earnings call showcased significant achievements in cost reduction, strategic partnerships, and technological advancements, which are anticipated to drive future growth. However, the company continues to face challenges with net losses and some uncertainty in the clean hydrogen market.Highlights
Global Restructuring and Cost Discipline
FuelCell Energy launched a global restructuring plan at the start of the fiscal year, successfully reducing operating expenses and narrowing losses. Operating costs are expected to be reduced by approximately 15% in fiscal year 2025 compared to fiscal year 2024.
Significant Partnerships and Growth Opportunities
FuelCell Energy announced a partnership with Diversified Energy and Tessiak to deliver up to 360 megawatts of electricity to data centers in Virginia, West Virginia, and Kentucky. Additionally, a joint development agreement was signed with Malaysia Marine and Heavy Engineering to co-develop hydrogen production systems across Asia, New Zealand, and Australia.
Advanced Technology and Demonstration Projects
The company progressed on advanced demonstration projects, including a collaboration with ExxonMobil for carbon capture technology and a delivered solid oxide electrolysis sales system to the US Department of Energy Idaho's National Laboratory.
Revenue Growth and Financial Performance
Total revenues for the first quarter of fiscal 2025 were $19 million, up from $16.7 million in the prior year. The gross loss decreased from $11.7 million in the previous year to $5.2 million. Backlog increased to $1.31 billion from $1.03 billion year-over-year.
Lowlights
Continued Net Loss
The net loss attributable to common stockholders was $29.1 million for the quarter, compared to $20.6 million in the first quarter of fiscal 2024. The net loss per share was $1.42 compared to $1.37 in the previous year.
Uncertainty in Clean Hydrogen Adoption
Uncertainty around tax credits and hydrogen production incentives slowed down progress in the clean hydrogen transportation sector, affecting potential new projects.
Company Guidance
In the first quarter of fiscal year 2025, FuelCell Energy has focused on cost discipline and strategic growth, resulting in a significant reduction in operating losses compared to the previous year. The company has launched a global restructuring plan, aiming to reduce operating costs by approximately 15% for the fiscal year. Revenue for the first quarter was reported at $19 million, up from $16.7 million the previous year, with a net loss of $29.1 million compared to a $20.6 million loss in the prior year. The adjusted EBITDA improved to negative $21.1 million from negative $29.1 million. FuelCell Energy has also expanded its partnerships, including a memorandum of understanding to deliver 360 megawatts of electricity for data centers and a joint development agreement with Malaysia Marine and Heavy Engineering, to enhance their clean energy solutions internationally. The company's backlog increased to $1.31 billion, significantly influenced by long-term service agreements and new project developments, indicating a positive trajectory for the remainder of fiscal year 2025.Fuelcell Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
FuelCell Energy Reports Q1 2025 Financial Results
Positive
Mar 11, 2025
FuelCell Energy reported its financial results for the first quarter of fiscal 2025, showing a revenue increase to $19.0 million, up from $16.7 million the previous year, and a narrowed gross loss of $5.2 million compared to $11.7 million. The company has made significant progress following its global restructuring, with reduced operating expenses and a focus on growth opportunities, including partnerships to capture the data center market and collaborations on large-scale electrolysis systems. Despite a net loss of $32.4 million, the company is optimistic about future revenue growth and operational improvements.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.