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Fuelcell Energy (FCEL)
NASDAQ:FCEL
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Fuelcell Energy
(NASDAQ:FCEL)38Underperform
Positive Factors
Partnerships
The expanded partnership with ExxonMobil provides opportunities to leverage technological advances for additional projects.
Revenue Growth
Revenue beat expectations due to higher sales from Product and Service segments.
Negative Factors
Cost Management
Gross loss of approximately $10.9M came in worse than anticipated, driven by increased costs associated with product revenues and higher generation cost of sales.
Financial Performance
Adjusted EBITDA was below consensus estimates, indicating financial performance concerns.
Fuelcell Energy (FCEL) vs. S&P 500 (SPY)
Market Cap
$130.35M
Dividend YieldN/A
Average Volume (3M)812.24K
Price to Earnings (P/E)―
Beta (1Y)1.59
Revenue Growth-9.13%
EPS Growth1.93%
CountryUS
Employees584
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)-7.76
Shares Outstanding21,143,772
10 Day Avg. Volume742,018
30 Day Avg. Volume812,243
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.12
Price to Cash Flow (P/CF)5.40
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
$9.88Price Target Upside49.92% Upside
Rating ConsensusHold
Number of Analyst Covering6
Fuelcell Energy Business Overview & Revenue Model
Company DescriptionFuelCell Energy, Inc. is a global leader in the design, manufacture, operation, and service of ultra-clean, efficient, and reliable fuel cell power plants. The company operates within the renewable energy sector, focusing on providing solutions for baseload and on-site power generation, carbon capture, and hydrogen production. Its core products include the SureSource product line, which offers scalable power generation solutions for commercial, industrial, and utility customers.
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's financial performance is challenged by persistent negative gross profit and net income, high debt levels, and ongoing negative cash flows. Despite some past revenue growth, the company's inability to convert sales into profits and cash highlights sustainability concerns.Income Statement
Fuelcell Energy's income statement shows significant challenges with persistent negative gross profit and net income indicating operational inefficiencies. The negative revenue growth from the previous year underscores the company's struggle to expand its market share in the competitive industrial goods sector. Despite the growth in revenue from earlier years, the inability to convert sales into profit is concerning.25
Negative
Balance Sheet
The balance sheet reflects a relatively stable equity position, but high levels of debt compared to equity indicate potential financial risk. Although the equity ratio remains healthy, the increasing debt-to-equity ratio could pressure future financial flexibility. The decline in stockholders' equity over the years is a negative sign for long-term stability.40
Negative
Cash Flow
Cash flow analysis reveals continued negative free cash flow and operating cash flow, indicating cash burn without sufficient inflows. The free cash flow to net income ratio highlights significant inefficiencies in converting revenue into cash profits. Despite this, positive financing cash flow suggests reliance on external funding, which might not be sustainable in the long run.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 112.13M | 123.39M | 130.48M | 69.58M | 70.87M | Gross Profit |
| -35.92M | -10.54M | -29.57M | -15.64M | -7.72M | EBIT |
| -158.49M | -136.08M | -143.72M | -64.90M | -39.17M | EBITDA |
| -110.87M | -74.85M | -118.75M | -73.79M | -54.99M | Net Income Common Stockholders |
| -129.21M | -107.57M | -147.23M | -101.03M | -89.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 257.26M | 353.71M | 458.06M | 432.21M | 149.87M | Total Assets |
| 944.12M | 955.52M | 939.72M | 875.25M | 523.54M | Total Debt |
| 25.63M | 139.25M | 104.29M | 97.84M | 182.77M | Net Debt |
| -134.67M | -110.71M | -353.77M | -334.37M | 32.91M | Total Liabilities |
| 216.66M | 195.22M | 185.33M | 169.92M | 269.13M | Stockholders Equity |
| 656.92M | 742.35M | 744.25M | 702.29M | 254.41M |
| Cash Flow | Free Cash Flow | |||
| -200.63M | -232.61M | -158.82M | -143.67M | -68.69M | Operating Cash Flow |
| -152.91M | -140.25M | -112.17M | -70.44M | -36.78M | Investing Cash Flow |
| -60.05M | -192.37M | -46.65M | -73.23M | -32.52M | Financing Cash Flow |
| 122.15M | 151.07M | 180.58M | 411.91M | 221.67M |
Fuelcell Energy Technical Analysis
Negative
6.59
Price Trends
8.39
Negative
9.08
Negative
13.19
Negative
Market Momentum
-0.64
Negative
44.11
Neutral
59.28
Neutral
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 6.59 is below the 20-day moving average (MA) of 6.80, below the 50-day MA of 8.39, and below the 200-day MA of 13.19, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 59.28 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $5.16B | ― | -5.49% | ― | 10.53% | 90.76% | |
49 Neutral | $556.92M | ― | -45.73% | ― | 20.29% | -106.22% | |
43 Neutral | $1.56B | ― | -90.88% | ― | -29.45% | -10.79% | |
38 Underperform | $130.35M | ― | -17.27% | ― | -9.13% | 1.93% |
* Industrials Sector Average
Performance Comparison
FCEL
Fuelcell Energy
6.59
-26.71
-80.21%
PLUG
Plug Power
1.78
-1.88
-51.37%
BE
Bloom Energy
23.08
12.62
120.65%
TSE:BLDP
Ballard Power Systems
1.78
-2.25
-55.83%
Fuelcell Energy Earnings Call Summary
Earnings Call Date: Dec 19, 2024 | % Change Since: -32.89% | Next Earnings Date: Mar 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with significant revenue growth and strategic restructuring initiatives being positive aspects. However, challenges such as the full-year revenue decline and increased net losses highlighted ongoing difficulties.Highlights
Fourth Quarter Revenue Surge
Fourth quarter revenue more than doubled year-over-year, reaching $49.3 million, driven mainly by module sales to Gyeonggi Green Energy in South Korea.
Global Restructuring Plan
FuelCell Energy announced a global restructuring plan focused on realigning team and capital to focus on core technologies, aiming for a 15% reduction in operating costs in fiscal year 2025.
Increase in Backlog
Finished the fiscal year with a backlog of approximately $1.16 billion, an increase of approximately 13.1% compared to the previous year.
Strong Liquidity Position
The company ended the fourth quarter with $318 million in cash, cash equivalents, and short-term investments, providing a strong position to invest in growth.
Lowlights
Full Fiscal Year Revenue Decline
Despite the strong fourth-quarter performance, full fiscal year 2024 revenue was down compared to the prior year.
Net Loss Increase
Net loss in the fourth quarter of fiscal year 2024 was $39.6 million, compared to a net loss of $29.5 million in the fourth quarter of fiscal year 2023.
Continued Negative Adjusted EBITDA
Adjusted EBITDA was negative $25.3 million in the fourth quarter of fiscal year 2024, although it showed improvement from the prior year.
Company Guidance
During the FuelCell Energy Q4 2024 earnings call, the company outlined its strategic guidance focusing on strengthening its financial and operational footing. The restructuring plan aims to reduce operating costs by approximately 15% in fiscal year 2025, primarily through workforce reductions and streamlined operations. The company anticipates significant revenue growth in fiscal year 2025, driven by module sales to Gyeonggi Green Energy in South Korea and other opportunities, despite a decrease in fiscal year 2024 revenue. FuelCell Energy ended the fourth quarter with $318 million in cash, cash equivalents, and short-term investments, positioning it to invest in growth and technology development. The company remains focused on optimizing its platform and maintaining commercial excellence, with a production capacity that can scale up to 200 megawatts to meet growing demand. Additionally, FuelCell Energy is closely monitoring developments around the 45V tax credit, which could impact future opportunities in hydrogen production.Fuelcell Energy Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
FuelCell Energy Unveils 2025 Plan and Leadership Changes
Neutral
Jan 6, 2025
FuelCell Energy announced its 2025 Long Term Incentive Plan, which includes awards combining relative total shareholder return performance shares and time-vesting restricted stock units for its named executive officers. In addition, Shankar Achanta was appointed as Executive Vice President, Chief Product and Technology Officer, with an employment agreement that details his compensation and severance terms, reflecting the company’s strategic focus on strengthening its leadership team.
Business Operations and StrategyFinancial Disclosures
FuelCell Energy Sees Revenue Rise Despite Increased Losses
Neutral
Dec 19, 2024
FuelCell Energy reported a significant increase in fourth-quarter revenue, driven primarily by module sales to Gyeonggi Green Energy Co., Ltd. in South Korea. Despite the revenue growth, the company experienced a higher gross loss and operational loss compared to the previous year, influenced by increased product revenue costs and higher generation costs. Looking forward, FuelCell Energy anticipates stronger financial footing in 2025 due to its restructuring strategy focused on core technologies, aiming for top-line revenue growth and future profitability. The company is strategically positioning itself to meet the growing global demand for resilient and clean energy solutions.
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.