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PowerCell Sweden AB (SE:PCELL)
:PCELL
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PowerCell Sweden AB
(OTC:PCELL)
Rating:55Neutral
Price Target:
kr27.00
▲(0.52%Upside)
Positive Factors
Order Book
Management's commentary points to a strong order book for '25, as the company enters serial production for the first time.
Revenue Growth
PowerCell reported solid revenue growth in Q1.
Negative Factors
Gross Margin
The gross margin was negatively impacted by FX headwinds.
Order Visibility
Despite the good quarter, there is caution due to the lack of visibility of order intake.
PowerCell Sweden AB (PCELL) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr1.50B
Dividend YieldN/A
Average Volume (3M)106.62K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth14.27%
EPS Growth50.17%
CountrySE
Employees146
SectorIndustrials
Sector Strength90
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.25
Shares Outstanding57,892,433
10 Day Avg. Volume101,692
30 Day Avg. Volume106,623
Financial Highlights & Ratios
PEG Ratio-1.11
Price to Book (P/B)3.76
Price to Sales (P/S)0.00
P/FCF Ratio-8.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr37.03Price Target Upside37.86% Upside
Rating ConsensusHold
Number of Analyst Covering1
PowerCell Sweden AB Business Overview & Revenue Model
Company DescriptionPowerCell Sweden AB (publ) develops and produces fuel cells and fuel cell systems for automotive, marine, and stationary applications in Sweden and internationally. It offers PowerCell S2 based solutions that comprise PowerCell MS-30, a fuel cell system for battery-operated electric vehicles; PowerCell PS-5, a fuel cell system that is used for electricity generation, as well as an auxiliary power generator for telecom, traffic, building, and household applications; and PowerCell S2 fuel cell stack. The company also offers PowerCell S3 based solutions, including Powercell MS-100 for heavy-duty use applications; PowerCell megawatt solutions for marine and stationary applications; and PowerCell S3 fuel cell stack for stationary and mobile applications. In addition, it offers engineering services and zero emission solutions. The company was founded in 2008 and is based in Gothenburg, Sweden.
How the Company Makes MoneyPowerCell Sweden AB generates revenue through the sale of its hydrogen fuel cell systems and related services. The company markets these systems to various industries, including automotive manufacturers, marine operators, and energy companies. Key revenue streams include direct sales of fuel cell systems, licensing of technology, and after-sales services such as maintenance and support. Additionally, PowerCell engages in strategic partnerships and collaborations with other companies to enhance its market reach and technological capabilities, which can also contribute to its revenue.
PowerCell Sweden AB Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q3-2024)
| % Change Since: -6.35%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected positive momentum with significant market activity and strategic partnerships, despite challenges in gross margin and cash flow. The company's advancements in reducing order negotiation time and securing key approvals indicate strong future potential.Q3-2024 Updates
Positive Updates
Increase in Market Activity and Incoming Orders
PowerCell reported a 3% growth in Q3 and 12% growth over the last 12 months. Significant orders include a SEK 165 million order from an Italian OEM for fuel cell systems.
Approval for Methanol Reformer and Fuel Cell System
Received Approval in Principle from Norske Veritas for a methanol reformer and fuel cell system, enhancing their offering for the marine market.
Reduction in Order Negotiation Time
Negotiation to delivery time reduced from 5 years to 18 months, indicating faster market adoption and mature customer base.
Growth in Aviation Segment
Strong position in the aviation sector with over 20 customers, and ongoing collaboration with Australia for aviation certification.
Partnership with Bosch
Collaboration with Bosch provides stability and credibility, enhancing production capacity and reliability.
Negative Updates
Decrease in Gross Margin
Gross margin decreased to above 30%, affected by product mix and currency exchange rates.
Operating Cash Flow Negative
Operating cash flow was negative at minus SEK 7.4 million in Q3, though with a noted improvement from the previous quarter.
Delayed Market Transition in Power Generation
The power generation segment has not yet reached its potential, with slower than expected market transition.
Company Guidance
During the PowerCell Group earnings call for Q3 2024, CEO Richard Berkling and CFO Torbjorn Gustafsson reported a 3% growth for the quarter and a 12% increase over the past 12 months, despite previously operating in softer market conditions. The company highlighted a SEK 165 million order for fuel cell systems from an Italian OEM as a major milestone, marking the initiation of serial production for over 100 systems. Additionally, they announced Approval in Principle from Norske Veritas for a combined methanol reformer and fuel cell system, targeting the marine market. While gross margins showed a downward trend, they remained above 30%, and operating cash flow improved to minus SEK 7.4 million due to increased OEM sales. PowerCell continues to focus on building a solid order portfolio, expanding in the U.S., and balancing cash flow to drive towards breakeven. The company also emphasized its strategic advantage through partnerships, notably with Bosch, and its readiness to scale production and meet new market demands.PowerCell Sweden AB Financial Statement Overview
Summary
PowerCell Sweden AB demonstrates robust revenue growth and a solid balance sheet with low leverage. However, profitability remains a concern with recurring losses and negative cash flows, indicating operational inefficiencies and reliance on external financing. Continued focus on improving profitability and cash flow generation is critical for long-term financial health.Income Statement
PowerCell Sweden AB shows a positive revenue growth trend with a TTM growth rate of 6.6%, indicating strong sales expansion. However, the company continues to face profitability challenges with a negative net profit margin of -10.6% and negative EBIT and EBITDA margins, reflecting ongoing operational inefficiencies. Despite these challenges, the company's gross profit margin remains stable at 33.4%, suggesting effective cost management in production.65
Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of 65.3%, highlighting financial stability. However, the negative return on equity of -9.5% indicates challenges in generating returns on shareholders' investments. The debt-to-equity ratio is relatively low at 0.06, reflecting conservative leverage practices, which reduces financial risk.72
Positive
Cash Flow
Cash flow management is a concern with a negative free cash flow growth rate of 182.2%, indicating increasing cash outflows. The operating cash flow to net income ratio is negative, reflecting insufficient cash generation from core operations relative to net losses. Financing activities have provided substantial inflows, suggesting reliance on external funding to support operations.58
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 356.32M | 334.28M | 310.29M | 244.69M | 159.76M | 103.53M | Gross Profit |
| 119.13M | 116.17M | 124.01M | 113.02M | 49.03M | 25.78M | EBIT |
| -83.70M | -83.74M | -72.58M | -72.47M | -78.66M | -94.06M | EBITDA |
| -68.23M | -22.06M | -27.23M | -22.95M | -44.04M | -51.13M | Net Income Common Stockholders |
| -37.84M | -47.28M | -62.96M | -58.17M | -75.08M | -116.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 406.40M | 218.92M | 70.81M | 196.86M | 332.51M | 416.85M | Total Assets |
| 560.08M | 662.44M | 425.11M | 473.95M | 521.33M | 564.69M | Total Debt |
| 41.95M | 73.82M | 28.14M | 31.46M | 37.22M | 72.40M | Net Debt |
| -364.45M | -145.10M | -42.67M | -165.39M | -295.29M | -344.44M | Total Liabilities |
| 119.01M | 248.74M | 149.68M | 141.07M | 137.88M | 107.13M | Stockholders Equity |
| 441.07M | 413.70M | 275.43M | 332.87M | 383.45M | 457.56M |
| Cash Flow | Free Cash Flow | ||||
| -183.75M | -65.27M | -124.17M | -138.31M | -84.23M | -14.36M | Operating Cash Flow |
| -136.60M | -18.57M | -95.69M | -120.51M | -66.34M | -3.86M | Investing Cash Flow |
| -47.16M | -46.54M | -28.17M | -24.39M | -17.92M | -10.79M | Financing Cash Flow |
| 224.72M | 224.69M | -8.78M | -8.46M | -7.52M | 2.54M |
PowerCell Sweden AB Technical Analysis
Neutral
26.86
Price Trends
25.94
Negative
28.44
Negative
31.70
Negative
Market Momentum
-0.16
Negative
53.77
Neutral
70.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PCELL, the sentiment is Neutral. The current price of 26.86 is above the 20-day moving average (MA) of 24.94, above the 50-day MA of 25.94, and below the 200-day MA of 31.70, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 70.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:PCELL.
PowerCell Sweden AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Performance Comparison
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26.86
-7.84
-22.59%
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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.