Fuelcell Energy (FCEL) AI Stock Analysis

• Market Cap: $146.96M
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 48.62%
• EPS Growth: 0.23%
• Country: US
• Employees: 584
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.79
• Shares Outstanding: 22,714,737
• 10 Day Avg. Volume: 2,697,321
• 30 Day Avg. Volume: 1,536,958
• PEG Ratio: -9.13
• Price to Book (P/B): 48.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -225.80
• Enterprise Value/Market Cap: 241.61
• Enterprise Value/Revenue: 89.01
• Enterprise Value/Gross Profit: -1.21K
• Enterprise Value/Ebitda: -87.47
• 1Y Price Target: $7.50
• Price Target Upside: 11.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 48 Neutral
• Price Target: $6.50 ▼(-3.27%Downside)

FuelCell Energy's overall stock score is significantly influenced by financial performance challenges, including declining revenues and persistent losses. Technical indicators suggest short-term momentum, but valuation remains unattractive due to negative earnings. Strategic restructuring and partnerships provide some optimism, but profitability and production challenges persist.

Positive Factors

Energy Solutions

Collaboration with MMHE aims to rapidly deploy large-scale hydrogen production solutions across Asia, New Zealand, and Australia.

Market Valuation

FuelCell has a market cap that is significantly lower than its net cash, suggesting potential hidden value in its stock.

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

Cash and Financial Outlook

There is a declining cash position and a vague financial outlook due to seasonality and uncontrollable components of revenue recognition.

Financial Performance

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

Revenue and Profitability

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 is experiencing significant financial challenges, highlighted by declining revenues and persistent net losses. Despite a low debt-to-equity ratio indicating conservative leverage, the company faces severe profitability and cash flow issues, with negative growth trends and high costs relative to revenues.

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.

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.

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.

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
38.25M	257.26M	353.71M	458.06M	432.21M	149.87M
	Total Assets
391.40M	944.12M	955.52M	939.72M	875.25M	523.54M
	Total Debt
181.08M	156.47M	139.25M	104.29M	97.84M	182.77M
	Net Debt
142.82M	8.34M	-110.71M	-353.77M	-334.37M	32.91M
	Total Liabilities
266.96M	216.66M	195.22M	185.33M	169.92M	269.13M
	Stockholders Equity
124.44M	716.78M	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

• Technical Analysis Sentiment: Positive
• Last Price: 6.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 6.72 is above the 20-day moving average (MA) of 5.20, above the 50-day MA of 4.54, and below the 200-day MA of 8.26, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 63.50 is Neutral, neither overbought nor oversold. The STOCH value of 67.73 is Neutral, 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
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
CBAT	61 Neutral	$98.03M	272.50	0.31%	―	-30.85%	-95.67%
OPTT	52 Neutral	$93.84M	―	-80.51%	―	23.98%	52.50%
TPIC	49 Neutral	$63.25M	―	77.71%	―	1.71%	-3.55%
FCEL	48 Neutral	$146.96M	―	-20.52%	―	48.62%	0.23%
CETY	44 Neutral	$16.72M	―	-90.36%	―	-87.59%	51.14%

Fuelcell Energy Corporate Events

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.

FuelCell Energy Reports Q1 2025 Financial Results

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.