Ballard Power Systems (BLDP) AI Stock Analysis

• Market Cap: $503.72M
• Dividend Yield: N/A
• Average Volume (3M): 621.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: -30.80%
• EPS Growth: -84.41%
• Country: CA
• Employees: 887
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): -1.48
• Shares Outstanding: 299,833,220
• 10 Day Avg. Volume: 577,384
• 30 Day Avg. Volume: 621,653
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.24
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.69
• Price Target Upside: -0.72% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10

Ballard Power Systems faces substantial financial hurdles, with declining revenues and profitability issues being the most significant concerns. Positive elements from the earnings call, including strong order intake and strategic restructuring, provide some optimism. Technical indicators and valuation metrics remain weak, reflecting ongoing market and operational challenges. The stock's outlook is mixed, with positive strategic actions offset by immediate financial difficulties.

Positive Factors

Cost Management

Project Forge is expected to drive unit cost reductions and improve efficiency in production, benefiting future performance.

Order Backlog

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

Product Milestones

Solaris's Urbino 18 hydrogen powered by Ballard's FCmove-HD+ was awarded 'Bus of the Year 2025', marking a milestone for zero-emission vehicles.

Negative Factors

Analyst Recommendation

Analyst recommendation is a SELL with a target price of $1.50.

Market Conditions

Challenging market conditions for adoption and financing are expected to persist for several years.

Profitability Challenges

BLDP's profitability remains constrained by its ability to scale beyond current levels.

Ballard Power Systems Business Overview & Revenue Model

Company Description

Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products. The company offers its products for power product markets, consisting of heavy-duty motives, such as bus, truck, rail, and marine applications; material handling; and backup power. It also provides technology solutions, including engineering and technology transfer, as well as licenses and sells intellectual property portfolio and fundamental knowledge for various PEM fuel cell applications; and hydrogen fuel cell powertrain and vehicle systems integration solutions. It operates in China, Germany, the United States, the United Kingdom, Canada, Denmark, Norway, Belgium, Japan, France, Spain, Taiwan, Poland, India, Ukraine, Sweden, and internationally. The company has a strategic alliance with Linamar Corporation for the co-development and sale of fuel cell powertrains and components for class 1 and 2 vehicles in North America and Europe. Ballard Power Systems Inc. was founded in 1979 and is headquartered in Burnaby, Canada.

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 is facing significant financial challenges, with declining revenues and increasing losses. Despite a strong cash position, the company's inability to generate profits or positive cash flow presents substantial risks. The balance sheet shows low leverage, but deteriorating equity and asset levels are concerning. Immediate focus on cost control and revenue growth is essential for improving financial health.

Income Statement

The company has experienced declining revenue over recent years, with a revenue drop from $102.4 million in 2023 to $69.7 million in 2024. Gross profit margin is negative, indicating the cost of goods sold exceeds revenue. Net profit margin is also negative, and the company has been consistently unprofitable. There is a concerning trend of increasing net losses, from $114.4 million in 2021 to $324.2 million in 2024, reflecting challenges in cost management and revenue generation.

Balance Sheet

The company maintains a solid cash position with cash and short-term investments of $606 million in 2024, despite declining from previous years. The debt-to-equity ratio remains low, indicating conservative leverage. However, the equity ratio has decreased significantly, pointing to a shrinkage in asset base and increased liabilities relative to equity. Return on equity is negative due to persistent losses, highlighting inefficiencies in generating shareholder value.

Cash Flow

Operating cash flow is negative, reflecting cash outflows from operational activities. Free cash flow has also deteriorated, with a negative trend from $145.9 million in 2023 to $135.7 million in 2024. The operating cash flow to net income and free cash flow to net income ratios are unfavorable, indicating challenges in converting income into cash. Capital expenditures have been reduced, but not enough to improve the cash flow situation.

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

Ballard Power Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.7 is above the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.74, and below the 200-day MA of 2.20, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
BLDP	50 Neutral	$503.72M	―	-38.88%	―	-30.80%	-84.41%
PYR	43 Neutral	C$83.07M	―	-5701.32%	―	26.79%	76.97%
DYA	40 Underperform	C$76.06M	―	2492.91%	―	258.52%	-4.87%
NXH	38 Underperform	C$16.95M	―	-246.93%	―	191.85%	-21.83%

Ballard Power Systems Corporate Events

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.

Ballard Power Systems Secures 5 MW Fuel Cell Engine Order for EU Bus Market

Ballard Power Systems has announced a multi-year supply agreement with Manufacturing Commercial Vehicles (MCV) in Egypt for approximately 5 MW of fuel cell engines. This agreement, which includes an initial order of 35 units out of a total of 50 FCmove-HD+ engines, marks a significant step in Ballard’s ongoing relationship with MCV and supports projects in the EU. The order is part of Ballard’s broader strategy to decarbonize public transit globally, building on their success of powering over 1,800 fuel cell buses worldwide. This move is expected to further solidify Ballard’s position in the growing fuel cell bus market.

Ballard Power Systems Schedules 2024 Earnings Call

Ballard Power Systems announced it will hold a conference call on March 13, 2025, to discuss its fourth quarter and full year 2024 financial results. This call provides stakeholders with insights into the company’s operational performance and its strategic positioning within the sustainable energy market.