TSX:BLDP

Stock Analysis Report

Ballard Power Systems

Executive Summary

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

Rewards

Earnings are forecast to grow 55.88% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Ballard Power Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BLDP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

BLDP

-0.6%

CA Electrical

0.6%

CA Market


1 Year Return

222.3%

BLDP

192.7%

CA Electrical

5.8%

CA Market

Return vs Industry: BLDP exceeded the Canadian Electrical industry which returned 192.7% over the past year.

Return vs Market: BLDP exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

BLDPIndustryMarket
7 Day-0.7%-0.6%0.6%
30 Day-4.4%-4.4%0.5%
90 Day74.6%69.5%3.6%
1 Year222.3%222.3%193.6%192.7%9.1%5.8%
3 Year463.7%463.7%345.7%340.6%15.4%5.0%
5 Year358.8%358.8%288.5%281.3%33.6%14.0%

Price Volatility Vs. Market

How volatile is Ballard Power Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ballard Power Systems undervalued compared to its fair value and its price relative to the market?

10.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BLDP (CA$15.05) is trading above our estimate of fair value (CA$1.12)

Significantly Below Fair Value: BLDP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BLDP is unprofitable, so we can't compare its PE Ratio to the Electrical industry average.

PE vs Market: BLDP is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BLDP is overvalued based on its PB Ratio (10.3x) compared to the CA Electrical industry average (0.6x).


Next Steps

Future Growth

How is Ballard Power Systems forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

55.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLDP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: BLDP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BLDP's is expected to become profitable in the next 3 years.

Revenue vs Market: BLDP's revenue (35.7% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: BLDP's revenue (35.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BLDP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-11.1%

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 -11.1% 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 (-2.1%).


Return on Equity

High ROE: BLDP has a negative Return on Equity (-15.63%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ballard Power Systems's financial position?


Financial Position Analysis

Short Term Liabilities: BLDP's short term assets ($236.7M) exceed its short term liabilities ($60.5M).

Long Term Liabilities: BLDP's short term assets ($236.7M) exceed its long term liabilities ($25.4M).


Debt to Equity History and Analysis

Debt Level: BLDP is debt free.

Reducing Debt: BLDP has no debt compared to 5 years ago when its debt to equity ratio was 0.5%.


Balance Sheet

Inventory Level: BLDP has a high level of physical assets or inventory.

Debt Coverage by Assets: BLDP's debt is covered by short term assets (assets are 6.6622030762668E+16x debt).


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: Insufficient data to determine if BLDP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BLDP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Randy MacEwen (50yo)

5.3yrs

Tenure

US$1,977,602

Compensation

Mr. R. Randall MacEwen, also known as Randy, has been the Chief Executive Officer and President of Ballard Power Systems Inc. since October 6, 2014. Mr. MacEwen has extensive executive-level experience in  ...


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD1.49M) is below average for companies of similar size in the Canadian market ($USD2.85M).

Compensation vs Earnings: Randy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
R. MacEwen
CEO, President & Director5.3yrsUS$1.98m0.14% $4.8m
Anthony Guglielmin
CFO & VP9.7yrsUS$951.77k0.059% $2.1m
Kevin Colbow
VP & CTO4yrsUS$582.38k0.012% $407.8k
Robert Campbell
VP & Chief Commercial Officer2.8yrsUS$973.32k0.012% $407.0k
Sarbjot Sidhu
Vice President of Operations1.2yrsno data0.0085% $299.8k
Guy McAree
Director of Marketing & Investor Relations0yrsno datano data
Kerry Hillier
General Counsel & Corporate Secretary0yrsno datano data
Jan Laishley
Vice President of Human Resources0.9yrsno datano data
Alfred Wong
Managing Director of Asia Pacific3yrsno datano data

3.0yrs

Average Tenure

Experienced Management: BLDP's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
R. MacEwen
CEO, President & Director5.3yrsUS$1.98m0.14% $4.8m
Ian Sutcliffe
Independent Director6.7yrsUS$107.25k0.0043% $150.6k
Duy-Loan Le
Independent Director3yrsUS$90.00k0.021% $752.4k
James Roche
Independent Chairman of the Board1.7yrsUS$132.72k0.021% $752.4k
Shaojun Sun
Independent Director1.1yrsno datano data
Marty Neese
Independent Director4.2yrsUS$92.25kno data
Douglas Hayhurst
Independent Director8.1yrsUS$129.25k0.0021% $75.1k
Janet Woodruff
Independent Director2.8yrsUS$115.74kno data
Kui Jiang
Independent Director1.1yrsno datano data

3.0yrs

Average Tenure

56yo

Average Age

Experienced Board: BLDP's board of directors are considered experienced (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 been diluted in the past year, with total shares outstanding growing by 26.7%.


Top Shareholders

Company Information

Ballard Power Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ballard Power Systems Inc.
  • Ticker: BLDP
  • Exchange: TSX
  • Founded: 1979
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: CA$3.527b
  • Shares outstanding: 234.37m
  • Website: https://www.ballard.com

Number of Employees


Location

  • Ballard Power Systems Inc.
  • 9000 Glenlyon Parkway
  • Burnaby
  • British Columbia
  • V5J 5J8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PO0DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1993
BLDPNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDAug 1993
BLDPTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 1993
0QY5LSE (London Stock Exchange)YesCommon SharesGBCADAug 1993
BLDSWX (SIX Swiss Exchange)YesCommon SharesCHCHFAug 1993

Biography

Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane fuel cell products worldwide. The company offers heavy duty modules, fuel cell stacks, backup power systems, and portable power/ unmanned aerial vehicles, and material handling products. In addition, it provides technology solutions comprising engineering services and technology transfer services, as well as licenses and sells intellectual property portfolio for various fuel cell applications. Its products are applied to transit bus, rail, material handling, truck, marine, and infrastructure. The company markets its products in China, Germany, the United States, Japan, Belgium, Denmark, the United Kingdom, the Netherlands, Canada, Taiwan, France, Poland, Finland, Norway, Spain, and internationally. Ballard Power Systems Inc. was founded in 1979 and is headquartered in Burnaby, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:39
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.