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FCEL

FuelCell Energy NasdaqGM:FCEL Stock Report

Last Price

US$3.39

Market Cap

US$1.4b

7D

-8.9%

1Y

-49.3%

Updated

29 Sep, 2022

Data

Company Financials +
FCEL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

FCEL Stock Overview

FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation.

FuelCell Energy, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for FuelCell Energy
Historical stock prices
Current Share PriceUS$3.39
52 Week HighUS$11.63
52 Week LowUS$2.87
Beta3.84
1 Month Change-19.09%
3 Month Change-10.32%
1 Year Change-49.33%
3 Year Change822.70%
5 Year Change-87.50%
Change since IPO-98.45%

Recent News & Updates

Sep 04

FuelCell: Don't Be Tempted To Buy This Pullback Yet

Summary FuelCell is scheduled to report its FQ3 earnings on September 8. Despite its disappointing release in Q2, FCEL managed to sustain its June bottom, corroborating our previous thesis. However, FCEL has pulled back nearly 30% from its August highs as the market digested the gains from its post-Inflation Reduction Act momentum spike. Given FuelCell's deep unprofitability, we surmise it's challenging for investors to buy into the hype unless management revises its medium-term outlook significantly. While we are confident that its May lows should hold resiliently, the current price action is not constructive. Coupled with a well-balanced valuation, some caution is appropriate. We discuss why we revise our rating on FCEL from Speculative Buy to Hold as it heads toward its FQ3 release. Thesis We updated investors in our June article on FuelCell Energy, Inc. (FCEL) that it has been forming a bottoming process since May. Despite posting highly disappointing results for Q2, it didn't cause FCEL to break below its May lows, as its bottom held resiliently. Therefore the market has been accumulating FCEL quietly, even as the pessimism on many renewable energy stocks was notable in mid-2022, given their unprofitability. However, the market rewarded patient investors as FCEL leveraged the passage of the Inflation Reduction Act (IRA), which aims to spur investments in renewable energy projects while reducing costs significantly. Therefore, FuelCell is also well-primed to be a key beneficiary, as it could help accelerate the company's road to profitability, helping to lift its valuations. Notwithstanding, the market has digested the rapid surge in FCEL toward its August highs, as sellers leveraged the post-IRA optimism to cut exposure. Still, investors who capitalized on our previous article would have seen more than 30% gains, allowing them to benefit from a reasonably profitable opportunity in just over two months. We reminded investors that FCEL was a speculative opportunity. Therefore, we emphasized that investors need to capitalize on sharp momentum spikes (regularly seen in FCEL's price structures) to take profits accordingly and not let their gains dissipate. Hopefully, investors have executed the appropriate risk management strategies to protect their gains. FuelCell heads into its upcoming FQ3 release on September 8, with its stock down nearly 30% from its August highs. We surmise it's appropriate to revise our rating as we parse management's commentary on its growth cadence and benefits from the IRA moving ahead. While we deduce that FCEL should sustain its May lows robustly, we are concerned with the lower-high price structure formed by its August highs, suggesting a secular downtrend. Coupled with what we deduce is a well-balanced valuation, we prefer to observe more constructive price action before suggesting to investors to add exposure. Accordingly, we revise our rating on FCEL from Speculative Buy to Hold. FuelCell's Unpredictable Margins Complicate Its Analysis FuelCell segment gross margins % (Company filings) Despite the disappointing quarter in Q2, we expect FuelCell's revenue growth to recover in H2, as the company highlighted it expects to complete its product sales of 20 replacement modules to POSCO Energy by the end of 2022. As the company didn't deliver any module in Q2, it implies FuelCell expects sales of 14 replacement modules in H2, which should reaccelerate its growth rate, as it laps an FY21 without the contribution from product sales. However, note that FuelCell's gross margins remain volatile for its profitable segment, Advanced Technologies, while Generation is still highly unprofitable. Therefore, we surmise that it complicates the analysis for investors over assessing its route to profitability. FuelCell adjusted EBITDA margins % consensus estimates (S&P Cap IQ) Furthermore, the consensus estimates (neutral) suggest that FuelCell should remain deeply entrenched in unprofitability through FY23, even as it remains committed to its FY25 revenue target of more than $300M. Hence, we urge investors to parse management's updates on the benefits of the IRA passage, given its recent optimism. CEO Jason Few articulated: These policy mechanisms will provide businesses with the long-term market and tax certainty needed to make important investment decisions in hiring, manufacturing, and partnerships that will lead to a clean energy economic renaissance in the United States while enhancing grid resiliency and reliability. (FuelCell press release) Is FCEL A Buy, Sell, Or Hold? FCEL price chart (weekly) (TradingView) Given FuelCell's unprofitability, we urge investors to parse how the market intends to value FCEL based on its price action. As seen above, FCEL has a resilient bottoming process from May to July (pre-Q2 earnings and pre-IRA passage) before surging toward its August highs. Therefore, the price action corroborated our thesis of a quiet accumulation phase, despite the high level of pessimism then.

Aug 30
Is FuelCell Energy (NASDAQ:FCEL) A Risky Investment?

Is FuelCell Energy (NASDAQ:FCEL) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

FCELUS ElectricalUS Market
7D-8.9%-3.3%-3.1%
1Y-49.3%-22.6%-21.5%

Return vs Industry: FCEL underperformed the US Electrical industry which returned -21.8% over the past year.

Return vs Market: FCEL underperformed the US Market which returned -20.3% over the past year.

Price Volatility

Is FCEL's price volatile compared to industry and market?
FCEL volatility
FCEL Average Weekly Movement11.1%
Electrical Industry Average Movement10.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: FCEL is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: FCEL's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1969384Jason Fewhttps://www.fuelcellenergy.com

FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation. It offers SureSource1500, a 1.4-megawatt (MW) platform; SureSource 3000, a 2.8 MW platform; SureSource 4000, a 3.7 MW platform; SureSource 250, a 250- kilowatt (kW) platform; SureSource 400, a 400-kW platform; and SureSource Hydrogen, a 2.3 MW platform that is designed to produce up to 1,200 kilograms of hydrogen per day for multi-megawatt utility, microgrid, and distributed hydrogen applications, as well as on-site heat and chilling applications. It also provides SureSource Capture system that separates and concentrates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities; solid oxide fuel cell/solid oxide electrolysis cell stack technology.

FuelCell Energy, Inc. Fundamentals Summary

How do FuelCell Energy's earnings and revenue compare to its market cap?
FCEL fundamental statistics
Market CapUS$1.37b
Earnings (TTM)-US$127.64m
Revenue (TTM)US$105.22m

13.1x

P/S Ratio

-10.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FCEL income statement (TTM)
RevenueUS$105.22m
Cost of RevenueUS$121.99m
Gross Profit-US$16.77m
Other ExpensesUS$110.86m
Earnings-US$127.64m

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.31
Gross Margin-15.94%
Net Profit Margin-121.31%
Debt/Equity Ratio4.7%

How did FCEL perform over the long term?

See historical performance and comparison