Fuelcell Energy (FCEL) AI Stock Analysis

• Market Cap: $212.83M
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 78.82%
• EPS Growth: -20.81%
• Country: US
• Employees: 584
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -3.78
• Shares Outstanding: 32,295,475
• 10 Day Avg. Volume: 3,915,483
• 30 Day Avg. Volume: 2,240,087
• PEG Ratio: -0.19
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 22.41
• P/FCF Ratio: -12.53
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: -4.40
• Enterprise Value/Ebitda: -0.80
• 1Y Price Target: $8.41
• Price Target Upside: 0.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 42 Neutral
• Price Target: $8.00 ▼(-3.96% Downside)

Fuelcell Energy's overall stock score is driven by significant financial challenges, including persistent losses and negative cash flows, which weigh heavily on the score. While technical indicators show short-term bullish momentum, valuation concerns and financial inefficiencies remain critical issues. The earnings call provides some optimism with revenue growth and strategic partnerships, but financial hurdles persist.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong demand for FuelCell Energy's products and services, suggesting a positive trajectory for market expansion and increased adoption of their technology.

Strategic Partnerships

These partnerships enhance FuelCell Energy's global presence and revenue potential, providing a stable foundation for future growth and market penetration in key regions.

Supportive US Policy

Favorable US policy tailwinds, such as the ITC, bolster FuelCell Energy's growth prospects by incentivizing the adoption of their clean energy solutions, enhancing long-term competitiveness.

Negative Factors

Increased Net Loss

The rising net loss reflects ongoing financial challenges, which could strain resources and hinder the company's ability to invest in growth initiatives and innovation.

Negative Cash Flow

Persistent negative cash flow undermines FuelCell Energy's financial stability, limiting its ability to fund operations and strategic projects without external financing.

Ongoing Gross Loss

Continued gross losses indicate challenges in achieving cost efficiency and profitability, which could impact long-term financial health and operational sustainability.

Fuelcell Energy Business Overview & Revenue Model

Company Description

FuelCell 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 Money

FuelCell Energy generates revenue through several key streams, primarily from the sale and installation of its fuel cell power plants and systems. The company engages in long-term power purchase agreements (PPAs) which provide stable revenue by selling the electricity generated by their systems to utilities and other customers. Additionally, FuelCell Energy earns money through service agreements that involve the maintenance and operation of their fuel cell facilities. The company also benefits from government grants and incentives aimed at promoting clean energy technologies, which can enhance its financial position. Significant partnerships with various energy and utility companies further bolster its revenue potential by expanding market access and enabling joint projects.

Fuelcell Energy Financial Statement Overview

Summary

Fuelcell Energy faces significant financial challenges, with persistent losses and negative cash flows. Despite revenue growth, the company struggles with profitability and cash generation. The balance sheet shows a strong equity position, but inefficiencies in generating returns remain a concern.

Income Statement

Fuelcell Energy's income statement shows a challenging financial position with negative margins across the board. The TTM gross profit margin is -24.54%, indicating significant cost challenges. The net profit margin is also deeply negative at -109.14%, reflecting substantial losses. Despite a revenue growth rate of 17.81% in the TTM period, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins of -103.94% and -73.90%, respectively.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.22, suggesting manageable leverage. However, the return on equity is negative at -20.06%, indicating inefficiencies in generating returns from shareholders' equity. The equity ratio stands at 66.95%, showing a strong equity base relative to total assets, which is a positive aspect.

Cash Flow

Cash flow analysis highlights significant challenges, with negative operating cash flow and free cash flow. The free cash flow growth rate is -27.85% in the TTM period, indicating worsening cash generation. The operating cash flow to net income ratio is -1.95, and the free cash flow to net income ratio is 1.30, reflecting cash flow issues despite some alignment with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	152.47M	112.13M	123.39M	130.48M	69.58M	70.87M
Gross Profit	-30.69M	-35.92M	-10.54M	-29.57M	-15.64M	-7.72M
EBITDA	-167.68M	-110.87M	-74.85M	-118.75M	-73.79M	-54.99M
Net Income	-201.05M	-126.01M	-107.57M	-147.23M	-101.03M	-89.11M
Balance Sheet
Total Assets	830.53M	944.12M	955.52M	939.72M	875.25M	523.54M
Cash, Cash Equivalents and Short-Term Investments	190.75M	257.26M	353.71M	458.06M	432.21M	149.87M
Total Debt	29.22M	141.36M	139.25M	104.29M	97.84M	182.77M
Total Liabilities	205.46M	216.66M	195.22M	185.33M	169.92M	269.13M
Stockholders Equity	556.17M	716.78M	742.35M	744.25M	702.29M	254.41M
Cash Flow
Free Cash Flow	-124.78M	-200.63M	-232.61M	-158.82M	-143.67M	-68.69M
Operating Cash Flow	-96.58M	-152.91M	-140.25M	-112.17M	-70.44M	-36.78M
Investing Cash Flow	48.90M	-60.05M	-192.37M	-46.65M	-73.23M	-32.52M
Financing Cash Flow	66.45M	122.15M	151.07M	180.58M	411.91M	221.67M

Fuelcell Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCEL, the sentiment is Positive. The current price of 8.33 is above the 20-day moving average (MA) of 5.17, above the 50-day MA of 4.97, and above the 200-day MA of 6.32, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 83.78 is Negative, neither overbought nor oversold. The STOCH value of 96.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCEL.

Fuelcell Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BE	63 Neutral	18.64B	17,227.66	3.98%	―	22.72%	0.00%
SLDP	58 Neutral	696.13M	-7.53	-25.23%	―	14.82%	-19.27%
EOSE	56 Neutral	2.37B	-1.72	77.98%	―	128.49%	-697.81%
PLUG	50 Neutral	2.31B	-0.99	-117.21%	―	-1.70%	9.93%
DFLI	45 Neutral	18.52M	-0.07	431.89%	―	4.80%	16.72%
FCEL	42 Neutral	$212.83M	―	-29.51%	―	78.82%	-20.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Fuelcell Energy Corporate Events

FuelCell Energy Reports 97% Revenue Increase in Q3 2025

FuelCell Energy reported a significant revenue increase of 97% for the third quarter of fiscal 2025, reaching $46.7 million, largely driven by its long-term service agreement with Gyeonggi Green Energy Co., Ltd. Despite this growth, the company faced a net loss of $92.5 million, attributed to restructuring and non-cash impairment expenses. The company is focusing on expanding its carbonate technology and distributed power generation capabilities to capitalize on the rising energy demands from data centers, aiming for future profitability and market leadership.

The most recent analyst rating on (FCEL) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Fuelcell Energy stock, see the FCEL Stock Forecast page.