Ballard Power Systems (BLDP) AI Stock Analysis

• Market Cap: C$623.65M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -29.66%
• EPS Growth: -67.02%
• Country: CA
• Employees: 887
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Machinery
• EPS (TTM): -0.10
• Shares Outstanding: 299,833,220
• 10 Day Avg. Volume: 2,235,120
• 30 Day Avg. Volume: 1,097,600
• PEG Ratio: -0.22
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.13
• Enterprise Value/Market Cap: -0.21
• Enterprise Value/Revenue: -0.39
• Enterprise Value/Gross Profit: 6.47
• Enterprise Value/Ebitda: 0.12
• 1Y Price Target: C$1.67
• Price Target Upside: -19.75% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11

• Rating: 52 Neutral
• Price Target: C$2.00 ▼(-3.85%Downside)

Ballard Power Systems' overall stock score is driven by significant financial challenges, mixed technical signals, and unattractive valuation metrics, partially offset by positive corporate events and strategic initiatives.

Positive Factors

Backlog and Orders

Ballard's backlog increased to $173.5mn, largely driven by significant transit wins, including a 1,000 unit supply agreement with Solaris, expanding its European bus presence.

Future Growth Potential

Management expects material orders over the coming quarters, suggesting potential for future growth.

Operational Efficiency

EBITDA slightly exceeded consensus expectations, indicating better operational efficiency.

Negative Factors

Backlog Decline

The company's order backlog decreased by 9%, showing a decline in future demand.

Demand Visibility

There is limited visibility into demand and a challenging hydrogen fuel cell market.

Order Activity

Muted order activity in the first quarter overshadows progress on cost reduction.

Ballard Power Systems Business Overview & Revenue Model

Company Description

Ballard Power Systems (BLDP) is a leading global provider of innovative clean energy solutions, specializing in the development and manufacture of proton exchange membrane (PEM) fuel cell products. Headquartered in Burnaby, British Columbia, Canada, the company serves multiple sectors, including transportation, power generation, and material handling. Ballard's core product offerings include fuel cell stacks, modules, and systems that are used in a variety of applications such as buses, commercial trucks, trains, marine vessels, and stationary power generation.

How the Company Makes Money

Ballard Power Systems generates revenue primarily through the sale of fuel cell products and related services. The company's key revenue streams include the sale of fuel cell modules and stacks to original equipment manufacturers (OEMs) and end-users in the transportation sector, such as bus and truck manufacturers. Additionally, Ballard earns revenue from engineering services, licensing agreements, technology transfer, and after-sales support. Strategic partnerships, joint ventures, and collaborations with industry leaders and governments worldwide also play a significant role in expanding Ballard's market presence and driving revenue growth. The company's focus on innovation and sustainability positions it well to capitalize on the increasing global demand for clean energy solutions.

Ballard Power Systems Financial Statement Overview

Summary

Ballard Power Systems faces significant financial challenges with declining revenues, negative profit margins, and operational inefficiencies. While the balance sheet shows low leverage, the negative return on equity and poor cash flow conversion highlight the company's struggles with profitability and cash generation.

Income Statement

Ballard Power Systems shows a concerning trend in its income statement with declining revenues and consistent negative profit margins. The TTM gross profit margin is -28.55%, and the net profit margin is -430.17%, both indicating significant losses. The revenue growth rate is 1.35% over the past year, suggesting stagnant growth. The EBIT and EBITDA margins are highly negative, further highlighting operational inefficiencies and challenges in managing costs.

Balance Sheet

The balance sheet reflects a mixed financial position. The debt-to-equity ratio is low at 0.04, indicating low leverage, which is a positive aspect. However, the return on equity is negative at -46.49%, showing inefficiency in generating returns for shareholders. The equity ratio is strong at 86.42%, demonstrating a solid capital structure with high equity relative to assets.

Cash Flow

Cash flow analysis reveals substantial challenges with negative operating cash flow and free cash flow. The free cash flow growth rate is marginally positive at 0.29%, but operating cash flow to net income ratio is 0.37, indicating poor cash conversion from earnings. The free cash flow to net income ratio is 0.45, showing that the company is struggling to convert its net losses into positive cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
70.67M	69.73M	102.37M	83.80M	104.50M	103.88M
	Gross Profit
-20.18M	-21.98M	-21.83M	-13.08M	14.01M	20.98M
	EBIT
-169.88M	-183.30M	-162.90M	-158.90M	-87.97M	-41.16M
	EBITDA
-291.71M	-309.29M	-129.42M	-145.10M	-103.32M	-40.20M
	Net Income Common Stockholders
-303.99M	-324.25M	-177.72M	-173.49M	-114.40M	-49.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
578.80M	606.05M	753.24M	915.74M	1.13B	765.43M
	Total Assets
756.61M	777.31M	1.08B	1.25B	1.44B	975.60M
	Total Debt
23.26M	23.89M	17.90M	15.73M	17.12M	17.87M
	Net Debt
-553.44M	-580.05M	-733.23M	-898.00M	-1.11B	-745.56M
	Total Liabilities
102.79M	104.32M	86.33M	88.17M	112.73M	74.71M
	Stockholders Equity
653.82M	672.99M	991.22M	1.16B	1.33B	900.89M
Cash Flow		Free Cash Flow
-135.32M	-135.72M	-145.94M	-166.68M	-95.18M	-55.80M
	Operating Cash Flow
-112.51M	-108.10M	-104.57M	-132.20M	-80.48M	-42.93M
	Investing Cash Flow
-29.71M	-36.51M	-54.28M	-75.56M	-85.63M	-36.39M
	Financing Cash Flow
-1.53M	-1.53M	-3.68M	-2.41M	526.91M	696.53M

Ballard Power Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLDP, the sentiment is Positive. The current price of 2.08 is above the 20-day moving average (MA) of 1.88, above the 50-day MA of 1.74, and above the 200-day MA of 2.06, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.63 is Neutral, neither overbought nor oversold. The STOCH value of 71.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BLDP.

Ballard Power Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
PYR	53 Neutral	C$93.34M	―	-5701.32%	―	14.45%	76.75%
BLDP	52 Neutral	C$623.65M	―	-37.81%	―	-29.66%	-67.02%
NXH	46 Neutral	C$15.58M	―	-525.98%	―	-24.60%	-11.26%
DYA	41 Neutral	C$68.87M	―	-1898.77%	―	408.78%	-20.74%

Ballard Power Systems Corporate Events

Ballard Power Systems Reports 2025 AGM Outcomes

Ballard Power Systems announced the results of its 2025 Annual General Meeting, where all director nominees were re-elected by a majority of shareholder votes. Additionally, KPMG LLP was re-appointed as the company’s auditor, and the approach to executive compensation was approved. These decisions reflect strong shareholder support and are likely to impact the company’s governance and operational strategies positively.

The most recent analyst rating on (TSE:BLDP) stock is a Hold with a C$1.25 price target. To see the full list of analyst forecasts on Ballard Power Systems stock, see the TSE:BLDP Stock Forecast page.

Ballard Power Systems Secures Fuel Cell Engine Order with Sierra Northern Railway

Ballard Power Systems has announced a new supply agreement with Sierra Northern Railway to deliver 1.5 MW of fuel cell engines in 2025. This collaboration aims to convert three diesel locomotives to hydrogen-fueled, zero-emission engines, supporting Sierra Northern Railway’s decarbonization efforts and enhancing operational efficiency. The initiative is a significant step in reducing greenhouse gas emissions in California’s transportation sector and showcases the versatility and critical role of Ballard’s fuel cell technology in advancing sustainable rail solutions.

The most recent analyst rating on (TSE:BLDP) stock is a Hold with a C$1.25 price target. To see the full list of analyst forecasts on Ballard Power Systems stock, see the TSE:BLDP Stock Forecast page.

Ballard Power Systems Sees Revenue Growth Amid Restructuring Efforts

Ballard Power Systems reported a 6% increase in revenue for Q1 2025, driven by strong performance in the bus market, which contributed 81% of the revenue. The company achieved a 14-point improvement in gross margins and significantly reduced operating expenses due to restructuring efforts. Despite a decrease in order backlog, Ballard maintains a strong cash position and is optimistic about future orders, navigating challenges related to hydrogen policies and trade tariffs.

Ballard Power Systems Faces 2024 Challenges but Achieves Key Milestones

Ballard Power Systems reported a challenging year in 2024, with revenue declines due to prolonged policy uncertainty and a difficult funding environment in the hydrogen and fuel cell industry. Despite these challenges, Ballard achieved significant commercial milestones, including a record order backlog and advancements in product development and cost reduction programs. The company also initiated a global restructuring to reduce operating expenses and halted further investments in the China market. Looking forward, Ballard aims to maintain financial strength and focus on customer needs and product development amidst ongoing industry rationalization.