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Ballard Power Systems (TSE:BLDP)
TSX:BLDP
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Ballard Power Systems
(TSX:BLDP)49Neutral
Positive Factors
Customer Relationships
BLDP has relationships with 5 key bus OEMs and expects to sign a new customer to a long-term supply agreement.
Order Intake
The company expects order intake to improve, including a 200 fuel cell engine order from New Flyer and an 80 fuel cell engine order from a European OEM customer.
Negative Factors
Market Conditions
Challenging market conditions for adoption and financing are expected to persist for several years.
Ballard Power Systems (BLDP) vs. S&P 500 (SPY)
Market Cap
$556.92M
Dividend YieldN/A
Average Volume (3M)904.08K
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth20.29%
EPS Growth-106.22%
CountryCA
Employees1,173
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)-1.50
Shares Outstanding299,420,870
10 Day Avg. Volume1,205,458
30 Day Avg. Volume904,082
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.74
Price to Cash Flow (P/CF)-3.00
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
C$7.21Price Target Upside287.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Ballard Power Systems Business Overview & Revenue Model
Company DescriptionBallard Power Systems Inc is a clean energy growth company. The company is engaged in proton exchange membrane fuel cell development and commercialization. The company's main business is the design, development, manufacture, sale, and service of fuel cell products for a variety of applications, focusing on motive power (material handling and buses) and stationary power (back-up power, supplemental power, and distributed generation). A fuel cell is an environmentally clean electrochemical device that combines hydrogen fuel with oxygen (from the air) to produce electricity. Geographically, it has a presence in China, Europe, North America and other of which Europe generates maximum revenue.
How the Company Makes MoneyBallard Power Systems generates revenue through the sale of its fuel cell products and systems to original equipment manufacturers (OEMs) and end-users across different sectors. Key revenue streams include the sale of fuel cell modules for transportation applications, stationary power generation systems, and backup power solutions. Additionally, Ballard earns revenue from licensing its proprietary technology and intellectual property to strategic partners. The company also benefits from government grants and funding opportunities aimed at promoting clean energy technologies. Significant partnerships with global OEMs and alliances with industry leaders contribute to its earnings by enhancing market penetration and expanding its product offerings.
Ballard Power Systems Financial Statement Overview
Summary
Ballard Power Systems has significant profitability challenges with negative revenue growth and margins, but maintains a strong equity base and low leverage, supporting financial stability.Income Statement
Ballard Power Systems has experienced declining revenue, with a negative revenue growth rate and consistent net losses over the periods. Gross profit margins are negative, indicating the cost of goods sold exceeds revenue. The EBIT and EBITDA margins are also deeply negative, reflecting operational inefficiencies and high operating costs relative to revenue.40
Negative
Balance Sheet
The balance sheet shows a high equity ratio, indicating a solid capital structure with substantial stockholder equity relative to total assets. However, the company has negative net income, leading to a negative ROE. The debt-to-equity ratio is low, suggesting low leverage and reduced financial risk.65
Positive
Cash Flow
The operating cash flows have been consistently negative, and free cash flow has been declining. The company is investing more than it generates, leading to negative free cash flow growth. However, the cash reserves are strong, providing a buffer against liquidity issues.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 91.35M | 102.37M | 83.80M | 104.50M | 103.88M | 106.33M | Gross Profit |
| -29.03M | -21.83M | -13.08M | 14.01M | 20.98M | 22.59M | EBIT |
| -186.95M | -162.90M | -158.90M | -87.97M | -41.16M | -25.79M | EBITDA |
| -303.84M | -129.31M | -145.10M | -103.32M | -40.20M | -26.32M | Net Income Common Stockholders |
| -329.02M | -177.72M | -173.49M | -114.40M | -49.47M | -39.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 192.24M | 753.24M | 915.74M | 1.13B | 765.43M | 147.79M | Total Assets |
| 346.10M | 1.08B | 1.25B | 1.44B | 975.60M | 340.32M | Total Debt |
| 5.70M | 17.90M | 15.73M | 17.12M | 17.87M | 19.75M | Net Debt |
| -186.54M | -733.23M | -898.00M | -1.11B | -745.56M | -128.04M | Total Liabilities |
| 63.50M | 86.33M | 88.17M | 112.73M | 74.71M | 90.06M | Stockholders Equity |
| 282.60M | 991.22M | 1.16B | 1.33B | 900.89M | 250.26M |
| Cash Flow | Free Cash Flow | ||||
| -131.10M | -145.94M | -166.68M | -95.18M | -55.80M | -28.16M | Operating Cash Flow |
| -102.03M | -104.57M | -132.20M | -80.48M | -42.93M | -14.23M | Investing Cash Flow |
| -41.25M | -54.28M | -75.56M | -85.63M | -36.39M | -32.75M | Financing Cash Flow |
| -3.46M | -3.68M | -2.41M | 526.91M | 696.53M | 2.57M |
Ballard Power Systems Technical Analysis
Negative
1.86
Price Trends
2.17
Negative
2.15
Negative
2.60
Negative
Market Momentum
-0.09
Positive
44.02
Neutral
18.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLDP, the sentiment is Negative. The current price of 1.86 is below the 20-day moving average (MA) of 1.96, below the 50-day MA of 2.17, and below the 200-day MA of 2.60, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 18.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BLDP.
Ballard Power Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$955.55M | 7.88 | 24.09% | 4.32% | 12.14% | 26.17% | |
63 Neutral | C$2.97B | 82.53 | 2.23% | 2.27% | -16.54% | -53.85% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
55 Neutral | C$13.33M | ― | -95.96% | ― | 5.42% | -55.46% | |
49 Neutral | $556.92M | ― | -45.73% | ― | 20.29% | -106.22% |
* Industrials Sector Average
Performance Comparison
TSE:BLDP
Ballard Power Systems
1.78
-2.25
-55.83%
TSE:BLX
Boralex Inc Cl A
28.91
-0.37
-1.26%
TSE:PSI
Pason Systems
12.37
-1.19
-8.78%
AQN
Algonquin Power & Utilities
4.80
-1.23
-20.40%
NPIFF
Northland Power
13.62
-3.25
-19.26%
TSE:GRN
Greenlane Renewables Inc
0.08
-0.05
-38.46%
Ballard Power Systems Earnings Call Summary
Earnings Call Date: Nov 5, 2024 | % Change Since: -22.50% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a challenging environment for Ballard Power Systems with significant revenue and market challenges, particularly in China and the truck and marine markets. However, the company remains financially robust with a strong cash position and significant new orders in the bus market, alongside efforts to reduce operating costs through restructuring.Highlights
Strong Cash Position
Ballard Power Systems ended the quarter with approximately $635.1 million in cash and cash equivalents, providing a robust financial foundation amid industry challenges.
Significant Bus Orders
Received a new order from New Flyer for 200 fuel cell engines, the largest order in the history of the industry for fuel cell engines in the North American bus market, and a repeat order from a European bus OEM.
Bus Revenue Increase
Bus revenue increased by 33% to $11.2 million in Q3, indicating growth in this sector despite overall revenue challenges.
Reduction in Operating Costs
Global restructuring is expected to reduce total annualized operating costs by more than 30%, with significant savings to be realized in 2025.
Lowlights
Weak Revenue and Order Intake
Q3 revenue totaled $14.8 million, a decrease of 45% year-over-year, with a disappointing new order intake of only $7.1 million.
Restructuring Charges and Impairments
Incurred a restructuring charge of $16.1 million and noncash goodwill and PP&E impairments totaling approximately $147 million.
Challenging Market Conditions
Significant headwinds due to uncertain macroeconomic and geopolitical outlook, protracted policy uncertainty, and a multiyear pushout of hydrogen project development.
China Market Challenges
Reduced corporate cost structure in China and initiated a strategic review of China strategy due to continued policy challenges and underperformance of Weichai-Ballard joint venture.
Negative Gross Margin
Negative gross margin of 56%, down 45 points compared to the same period last year, due to lower revenue and changes in revenue mix.
Company Guidance
In the recent Q3 2024 earnings call for Ballard Power Systems (BLDP.TO), significant guidance was provided amidst challenging industry conditions. The company announced a global restructuring aiming to reduce total annualized operating costs by more than 30%, with major savings expected in 2025. This restructuring involves workforce reductions and rationalization of product development programs. Ballard reported a $16.1 million restructuring charge and non-cash goodwill and PP&E impairments of approximately $147 million. The company experienced weak revenue and low new order intake of $7.1 million in Q3, but anticipates improvement in Q4. Notably, Ballard secured a substantial order from New Flyer for 200 fuel cell engines and another order from a European bus OEM. Despite these challenges, Ballard maintains a strong cash position of approximately $635.1 million and plans to defer its Texas gigafactory expansion decision to 2026, preserving $94 million in government funding.Ballard Power Systems Corporate Events
Ballard Power Secures Major Fuel Cell Orders
Dec 20, 2024
Ballard Power Systems has secured orders for over 90 fuel cell engines, totaling approximately 6.4 MW, for the European and UK city bus market. This move highlights the growing adoption of fuel cells as a zero-emission alternative to diesel engines. The orders signify Ballard’s strengthening partnerships and increasing presence in the clean energy transportation sector.
Ballard Power to Empower California’s Green Rail
Dec 9, 2024
Ballard Power Systems has announced a multi-year agreement with Stadler US to provide 8 megawatts of fuel cell engines for California’s zero-emission passenger trains. This partnership aims to replace traditional diesel engines with hydrogen fuel cells, supporting the state’s initiative to enhance its sustainable rail infrastructure. The collaboration reinforces Ballard’s position in the rail market by showcasing the benefits of fuel cell technology.
Ballard Power Secures Major Hydrogen Engine Order
Dec 5, 2024
Ballard Power Systems has secured a significant order from Canadian Pacific Kansas City for 98 fuel cell engines, aiming to power North American freight rail locomotives with hydrogen technology. This partnership marks a major step towards decarbonizing the rail sector and reducing reliance on diesel engines, reinforcing the potential of hydrogen fuel cells in providing sustainable and efficient rail transport.
Ballard Power Systems Restructures Amid Revenue Decline
Nov 5, 2024
Ballard Power Systems faced a challenging Q3 2024, with a significant drop in revenue and a major corporate restructuring to cut costs amid slow adoption of hydrogen and PEM fuel cells. The company remains optimistic about future opportunities in the bus, rail, and stationary markets, especially with a new supply agreement for the North American bus market. Despite setbacks, Ballard is focused on developing low-cost fuel cell products and maintaining financial discipline to ensure long-term sustainability.
Ballard Power Expands Fuel Cell Partnership with New Flyer
Nov 4, 2024
Ballard Power Systems has received an order for 200 fuel cell engines from New Flyer, doubling their previous order and highlighting the growing demand for hydrogen fuel cell technology. These engines will be used in New Flyer’s next generation hydrogen buses, set to be deployed across several U.S. states. This partnership underscores the increasing adoption of zero-emission solutions in mass transit.
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.