Ballard Power Systems (TSX:BLDP) - Share price, News & Analysis

BLDP fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

BLDP Stock Overview

Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products.

Rewards

Revenue is forecast to grow 34.55% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Ballard Power Systems Competitors

Hammond Power Solutions

TSX:HPS.A

CA$175.7m

Eguana Technologies

TSXV:EGT

CA$92.9m

Loop Energy

TSX:LPEN

CA$53.9m

Electrovaya

TSX:EFL

CA$100.0m

Price History & Performance

Summary of all time highs, changes and price drops for Ballard Power Systems
Historical stock prices
Current Share Price	CA$8.31
52 Week High	CA$24.48
52 Week Low	CA$7.46
Beta	1.77
1 Month Change	-16.57%
3 Month Change	-43.85%
1 Year Change	-63.33%
3 Year Change	55.91%
5 Year Change	122.19%
Change since IPO	398.60%

Recent News & Updates

May 22

Companies Like Ballard Power Systems (TSE:BLDP) Are In A Position To Invest In Growth

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining...

Shareholder Returns

	BLDP	CA Electrical	CA Market
7D	-0.6%	-1.5%	-0.4%
1Y	-63.3%	-61.4%	-2.9%

Return vs Industry: BLDP underperformed the Canadian Electrical industry which returned -60.2% over the past year.

Return vs Market: BLDP underperformed the Canadian Market which returned -2.6% over the past year.

Price Volatility

Is BLDP's price volatile compared to industry and market?
BLDP volatility
BLDP Average Weekly Movement	11.0%
Electrical Industry Average Movement	10.1%
Market Average Movement	10.1%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: BLDP is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: BLDP's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	785	Randy MacEwen	https://www.ballard.com

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.

Ballard Power Systems Fundamentals Summary

How do Ballard Power Systems's earnings and revenue compare to its market cap?
BLDP fundamental statistics
Market Cap	US$2.01b
Earnings (TTM)	-US$136.99m
Revenue (TTM)	US$107.93m

17.8x

P/S Ratio

-14.0x

P/E Ratio

Is BLDP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BLDP income statement (TTM)
Revenue	US$107.93m
Cost of Revenue	US$96.75m
Gross Profit	US$11.18m
Other Expenses	US$148.17m
Earnings	-US$136.99m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.46
Gross Margin	10.36%
Net Profit Margin	-126.92%
Debt/Equity Ratio	0%

How did BLDP perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is BLDP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BLDP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BLDP. This is calculated by dividing BLDP's market cap by their current preferred multiple.
What is BLDP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.01b

BLDP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	9.2x
Enterprise Value/EBITDA	-10.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does BLDP's PS Ratio compare to its peers?

BLDP PS Ratio vs Peers

The above table shows the PS ratio for BLDP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	14x
HPS.A Hammond Power Solutions	0.4x	6.1%	CA$175.7m
EGT Eguana Technologies	15.3x	58.6%	CA$92.9m
LPEN Loop Energy	33.7x	54.3%	CA$53.9m
EFL Electrovaya	6.7x	44.7%	CA$100.0m
BLDP Ballard Power Systems	17.8x	34.5%	CA$2.6b

Forward PS

Price-To-Sales vs Peers: BLDP is expensive based on its Price-To-Sales Ratio (17.8x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does BLDP's PE Ratio compare vs other companies in the North American Electrical Industry?

Price-To-Sales vs Industry: BLDP is expensive based on its Price-To-Sales Ratio (17.8x) compared to the Canadian Electrical industry average (17x)

Price to Sales Ratio vs Fair Ratio

What is BLDP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BLDP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	17.8x
Fair PS Ratio	3.7x

Price-To-Sales vs Fair Ratio: BLDP is expensive based on its Price-To-Sales Ratio (17.8x) compared to the estimated Fair Price-To-Sales Ratio (3.7x).

Share Price vs Fair Value

What is the Fair Price of BLDP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate BLDP's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate BLDP's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BLDP's PEG Ratio to determine if it is good value.

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Future Growth

How is Ballard Power Systems forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLDP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BLDP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BLDP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BLDP's revenue (34.5% per year) is forecast to grow faster than the Canadian market (7% per year).

High Growth Revenue: BLDP's revenue (34.5% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BLDP is forecast to be unprofitable in 3 years.

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Past Performance

How has Ballard Power Systems performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-47.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BLDP is currently unprofitable.

Growing Profit Margin: BLDP is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: BLDP is unprofitable, and losses have increased over the past 5 years at a rate of 47.1% per year.

Accelerating Growth: Unable to compare BLDP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BLDP is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (28.6%).

Return on Equity

High ROE: BLDP has a negative Return on Equity (-10.65%), as it is currently unprofitable.

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Financial Health

How is Ballard Power Systems's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: BLDP's short term assets ($1.2B) exceed its short term liabilities ($77.0M).

Long Term Liabilities: BLDP's short term assets ($1.2B) exceed its long term liabilities ($27.5M).

Debt to Equity History and Analysis

Debt Level: BLDP is debt free.

Reducing Debt: BLDP had no debt 5 years ago.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BLDP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: BLDP has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 33.9% each year

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Dividend

What is Ballard Power Systems's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BLDP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BLDP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BLDP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BLDP's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BLDP has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure

CEO

Randy MacEwen (52 yo)

7.67yrs

Tenure

US$2,032,165

Compensation

Mr. R. Randall MacEwen, also known as Randy, serves as Director at Brookfield Renewable Corporation since November 5, 2021 and serves as its Independent Director since 2022. He has been the Chief Executive...

CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD2.03M) is about average for companies of similar size in the Canadian market ($USD2.38M).

Compensation vs Earnings: Randy's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: BLDP's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: BLDP's board of directors are considered experienced (5.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31