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Plug Power (PLUG)
NASDAQ:PLUG
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Plug Power
(NASDAQ:PLUG)
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Rating:50Neutral
Price Target:
$1.50
▼(-37.50% Downside)
Plug Power's overall stock score reflects significant financial challenges, with persistent negative margins and cash flow issues. While the earnings call highlighted strategic initiatives and revenue growth, ongoing profitability issues and valuation concerns weigh heavily on the score. Technical analysis provides mixed signals, with bearish momentum but neutral RSI.
Positive Factors
Revenue Growth
The 21% revenue growth indicates strong demand across key platforms, suggesting robust market position and potential for sustained expansion.
Electrolyzer Sales Surge
The surge in electrolyzer sales highlights Plug Power's growing footprint in the hydrogen market, supporting long-term revenue diversification.
Policy Tailwinds
Favorable policy changes offer strategic advantages, aligning with Plug Power's expansion goals and enhancing competitiveness in clean energy.
Negative Factors
Negative Gross Margins
Persistently negative gross margins indicate ongoing operational inefficiencies, challenging profitability and long-term financial health.
Cash Flow Issues
Negative cash flows suggest inefficiencies in cash management, potentially constraining investment capabilities and operational flexibility.
Tariff Impacts
Tariff impacts increase costs, affecting pricing strategies and potentially eroding competitive advantage in key markets.
Plug Power (PLUG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.06B
Dividend YieldN/A
Average Volume (3M)62.08M
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth-1.70%
EPS Growth9.93%
CountryUS
Employees3,224
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.20
Shares Outstanding1,154,840,700
10 Day Avg. Volume97,347,392
30 Day Avg. Volume62,079,175
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue3.59
Enterprise Value/Gross Profit-5.23
Enterprise Value/Ebitda-1.31
Forecast
1Y Price Target
$2.08Price Target Upside-13.33% Downside
Rating ConsensusHold
Number of Analyst Covering15
Plug Power Business Overview & Revenue Model
Company DescriptionPlug Power Inc. delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, stationary power market, and others in North America and internationally. It engages in building an end-to-end green hydrogen ecosystem, including green hydrogen production, storage and delivery, and energy generation through mobile or stationary applications. The company provides proton exchange membrane (PEM), fuel cell and fuel processing technologies, and fuel cell/battery hybrid technologies, as well as related hydrogen and green hydrogen generation, storage, and dispensing infrastructure. The company offers GenDrive, a hydrogen-fueled PEM fuel cell system that provides power to material handling electric vehicles; GenFuel, a liquid hydrogen fueling delivery, generation, storage, and dispensing system; GenCare, an ongoing Internet of Things-based maintenance and on-site service program for GenDrive fuel cell systems, GenSure fuel cell systems, GenFuel hydrogen storage and dispensing products, and ProGen fuel cell engines; and GenSure, a stationary fuel cell solution that offers modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors. It also provides GenKey, an integrated turn-key solution for transitioning to fuel cell power; ProGen, a fuel cell stack and engine technology used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; and GenFuel Electrolyzers that are hydrogen generators optimized for clean hydrogen production. The company sells its products through a direct product sales force, original equipment manufacturers, and dealer networks. It has strategic agreements with Airbus; Lhyfe; Edison Motors; Phillips 66; Apex Clean Energy; BAE Systems; and Universal Hydrogen Co. The company was founded in 1997 and is headquartered in Latham, New York.
How the Company Makes MoneyPlug Power generates revenue through several key streams, primarily focusing on the sale of hydrogen fuel cell systems and related services. The company sells its fuel cell systems to various sectors, including material handling, transportation, and stationary power applications. Additionally, Plug Power has established significant partnerships with major corporations such as Amazon and Walmart, which utilize its fuel cell technology in their logistics and warehouse operations. The company also produces and sells hydrogen, creating an additional revenue stream through its hydrogen generation and distribution operations. Ongoing contracts and agreements for fuel cell system deployments, as well as service and maintenance agreements, further contribute to its earnings, allowing Plug Power to capitalize on the growing demand for clean energy solutions.
Plug Power Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and profitability, and indicating the company's strategic focus and market opportunities.
Analyzes revenue from different business segments, highlighting which areas are driving growth and profitability, and indicating the company's strategic focus and market opportunities.
Data provided by:
Main Street Data
Main Street DataPlug Power Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected positive momentum with significant revenue growth, improved gross margins, and strong sales in the electrolyzer segment. Despite the ongoing issue of negative gross margins and tariff impacts, the company is making progress with strategic initiatives and benefits from favorable policy changes.Q2-2025 Updates
Positive Updates
Revenue Growth
Plug Power closed the second quarter with $174 million in revenue, up 21% year-over-year, driven by strong demand across the GenDrive, GenFuel, and GenEco platforms.
Electrolyzer Sales Surge
Electrolyzer sales more than tripled from a year ago, reaching roughly $45 million in the quarter.
Improved Gross Margins
Gross margins improved significantly from negative 92% in Q2 of last year to negative 31% this quarter.
Hydrogen Plant Performance
Hydrogen plants in Georgia and Louisiana are performing well, with the Louisiana plant offering the lowest cost support for the business.
Strong Cash Position
Ended the quarter with over $140 million in cash and have access to more than $300 million in additional debt capacity. Net cash in operating and investing activities declined over 40% year-over-year.
Policy Tailwinds
Recent legislation on production and investment tax credits provides long-term clarity and aligns with Plug Power's strategy to expand hydrogen production.
Negative Updates
Ongoing Negative Gross Margins
Despite improvements, the gross margins are still negative at -31%.
Tariff Impacts
Material handling business is facing tariff impacts, which are over 10% in cost, impacting pricing strategies.
Company Guidance
During Plug Power's second quarter earnings call for fiscal year 2025, CEO Andy Marsh emphasized the company's strategic priorities under Project Quantum Leap, targeting improvements in gross margins, operational efficiency, and cash discipline. The company reported a 21% year-over-year revenue increase to $174 million, driven by strong demand across its GenDrive, GenFuel, and GenEco platforms. Electrolyzer sales burgeoned to approximately $45 million, and gross margins improved from negative 92% in the previous year to negative 31% this quarter. The company's goal is to achieve gross margin neutrality by the fourth quarter, facilitated by pricing adjustments and enhanced service performance. The hydrogen plants in Georgia and Louisiana are operating effectively, and a new hydrogen supply agreement is projected to yield significant cost savings. Plug Power also forecasts approximately $700 million in revenue for the year, with a robust electrolyzer pipeline anticipated to contribute to future growth. The organization remains committed to maintaining strict cash discipline, reducing net cash outflows by over 40% year-over-year, ending the quarter with $140 million in cash and over $300 million in additional debt capacity.Plug Power Financial Statement Overview
Summary
Plug Power faces significant financial challenges with negative profit margins and cash flow inefficiencies. Despite moderate leverage, the company's poor returns on equity and persistent losses are concerning. Improvements in operational efficiencies and cash flow generation are needed.Income Statement
Plug Power's income statement reveals significant challenges with profitability and growth. The company reported a negative gross profit margin of -84.00% and a net profit margin of -312.25% for the TTM period. Revenue growth showed a modest increase of 2.13% compared to the previous annual period, but EBIT and EBITDA margins remain deeply negative. There is a persistent trend of high negative margins, indicating ongoing operational inefficiencies.40
Negative
Balance Sheet
The balance sheet reflects a mixed picture. Plug Power has a debt-to-equity ratio of 0.35, indicating moderate leverage, but the return on equity of -107.98% shows poor returns on shareholder investments. The equity ratio stands at 51.12%, suggesting a balanced asset structure. Despite the manageable debt levels, the company's significant equity losses raise concerns about financial sustainability.50
Neutral
Cash Flow
Cash flow analysis indicates troubling signs with a negative free cash flow growth rate of 15.19% and an operating cash flow to net income ratio of 0.33, highlighting inefficiencies in converting income into cash flow. The free cash flow to net income ratio of 0.45 further underscores the cash flow challenges the company faces.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 672.84M | 628.81M | 891.34M | 701.44M | 502.34M | -100.47M |
| Gross Profit | -461.88M | -624.89M | -507.79M | -194.36M | -99.32M | -69.72M |
| EBITDA | -1.84B | -1.98B | -1.26B | -632.53M | -409.57M | -550.95M |
| Net Income | -1.97B | -2.10B | -1.37B | -724.01M | -459.96M | -596.15M |
Balance Sheet | ||||||
| Total Assets | 3.35B | 3.60B | 4.90B | 5.76B | 5.95B | 2.42B |
| Cash, Cash Equivalents and Short-Term Investments | 140.74M | 205.69M | 135.03M | 2.16B | 3.87B | 1.31B |
| Total Debt | 546.67M | 1.08B | 968.85M | 898.73M | 810.15M | 560.10M |
| Total Liabilities | 1.59B | 1.80B | 2.00B | 1.70B | 1.34B | 910.10M |
| Stockholders Equity | 1.68B | 1.73B | 2.90B | 4.06B | 4.61B | 1.47B |
Cash Flow | ||||||
| Free Cash Flow | -770.41M | -1.06B | -1.80B | -1.29B | -551.44M | -206.53M |
| Operating Cash Flow | -603.55M | -728.64M | -1.11B | -828.62M | -358.18M | -156.31M |
| Investing Cash Flow | -221.02M | -402.36M | 728.05M | -679.37M | -1.74B | -95.33M |
| Financing Cash Flow | 682.48M | 983.17M | 6.12M | -77.46M | 3.60B | 1.52B |
Plug Power Technical Analysis
Positive
2.40
Price Trends
1.68
Positive
1.38
Positive
1.59
Positive
Market Momentum
0.22
Negative
71.28
Negative
72.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLUG, the sentiment is Positive. The current price of 2.4 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.68, and above the 200-day MA of 1.59, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 71.28 is Negative, neither overbought nor oversold. The STOCH value of 72.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLUG.
Plug Power Risk Analysis
Plug Power disclosed 48 risk factors in its most recent earnings report. Plug Power 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
Plug Power Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | 1.51B | -28.45 | -49.59% | ― | 209.20% | 4.24% | |
58 Neutral | 821.22M | -8.28 | -25.23% | ― | 14.82% | -19.27% | |
56 Neutral | 2.86B | -1.95 | 77.98% | ― | 128.49% | -697.81% | |
54 Neutral | 1.25B | -9.08 | -38.32% | ― | 20.84% | 24.84% | |
50 Neutral | $3.06B | ― | -84.40% | ― | -1.70% | 9.93% | |
47 Neutral | 310.04M | -0.99 | -36.15% | ― | 78.82% | -20.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
PLUG
Plug Power
2.40
0.45
23.08%
FCEL
Fuelcell Energy
8.67
-3.47
-28.58%
MVST
Microvast Holdings
3.98
3.71
1374.07%
EOSE
Eos Energy Enterprises
10.65
8.17
329.44%
SLDP
Solid Power
3.93
2.58
191.11%
AMPX
Amprius Technologies Inc
11.09
10.23
1189.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.