NasdaqGM:HYGS

Stock Analysis Report

Executive Summary

Hydrogenics Corporation, together with its subsidiaries, designs, develops, and manufactures hydrogen generation products based on water electrolysis technology; and fuel cell products based on proton exchange membrane (PEM) technology.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.

Risks

  • Hydrogenics has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Hydrogenics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

NasdaqGM:HYGS

2.6%

US Electrical

2.1%

US Market


1 Year Return

155.9%

NasdaqGM:HYGS

-11.2%

US Electrical

-0.04%

US Market

HYGS outperformed the Electrical industry which returned -11.2% over the past year.

HYGS outperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

HYGSIndustryMarket
7 Day0%2.6%2.1%
30 Day0.5%-8.5%-3.2%
90 Day56.4%-1.3%2.8%
1 Year155.9%155.9%-9.3%-11.2%2.2%-0.04%
3 Year165.4%165.4%22.1%14.9%41.5%32.3%
5 Year-30.0%-30.0%17.5%5.7%55.0%37.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hydrogenics undervalued based on future cash flows and its price relative to the stock market?

11.72x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Hydrogenics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hydrogenics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hydrogenics is loss making, we can't compare its value to the US Electrical industry average.

Hydrogenics is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Hydrogenics, we can't assess if its growth is good value.


Price Based on Value of Assets

Hydrogenics is overvalued based on assets compared to the US Electrical industry average.


Next Steps

Future Growth

How is Hydrogenics expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

68.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hydrogenics's revenue is expected to grow significantly at over 20% yearly.

Hydrogenics's earnings are expected to grow significantly at over 20% yearly.

Hydrogenics's revenue growth is expected to exceed the United States of America market average.

Hydrogenics's earnings growth is expected to exceed the United States of America market average.

Hydrogenics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hydrogenics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hydrogenics performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hydrogenics does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Hydrogenics's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Hydrogenics's 1-year growth to the US Electrical industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Hydrogenics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Hydrogenics has efficiently used its assets last year compared to the US Electrical industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Hydrogenics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Hydrogenics's financial position?


Financial Position Analysis

Hydrogenics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hydrogenics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hydrogenics's level of debt (33%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (18.3% vs 33% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.3x 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.

Hydrogenics has sufficient cash runway for 1.3 years based on current free cash flow.

Hydrogenics has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of -13.2% each year.


Next Steps

Dividend

What is Hydrogenics's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Hydrogenics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Hydrogenics's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Hydrogenics has not reported any payouts.

Unable to verify if Hydrogenics's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Hydrogenics has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hydrogenics's salary, the management and board of directors tenure and is there insider trading?

10.3yrs

Average management tenure


CEO

Daryl C. Wilson (60yo)

12.7yrs

Tenure

US$1,178,220

Compensation

Mr. Daryl C. F. Wilson has been the Chief Executive Officer and President at Hydrogenics Corporation since December 2006. Mr. Wilson served as Senior Vice President of Manufacturing, Engineering and Develo ...


CEO Compensation Analysis

Daryl C.'s remuneration is about average for companies of similar size in United States of America.

Daryl C.'s compensation has increased whilst company is loss making.


Management Age and Tenure

10.3yrs

Average Tenure

The average tenure for the Hydrogenics management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.6yrs

Average Tenure

60yo

Average Age

The tenure for the Hydrogenics board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Joseph Cargnelli (49yo)

    Founder

    • Tenure: 14.3yrs
    • Compensation: US$577.42k
  • Bernd Pitschak

    Managing Director of Hydrogenics GmbH

    • Tenure: 17.3yrs
  • Daryl C. Wilson (60yo)

    President

    • Tenure: 12.7yrs
    • Compensation: US$1.18m
  • Wido Westbroek

    Vice President of Sales & Marketing

    • Tenure: 8.0yrs
    • Compensation: US$393.03k
  • Marc Beisheim

    CFO & Corporate Secretary

    • Tenure: 1.3yrs
    • Compensation: US$523.24k
  • Kelly Frizzel

    Director of Finance and Corporate Controller

    • Tenure: 0.0yrs

Board Members

  • Joseph Cargnelli (49yo)

    Founder

    • Tenure: 14.3yrs
    • Compensation: US$577.42k
  • Don Lowry (68yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$91.50k
  • David Ferguson (67yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$96.00k
  • Daryl C. Wilson (60yo)

    President

    • Tenure: 12.7yrs
    • Compensation: US$1.18m
  • Doug Alexander (61yo)

    Chairman of the Board

    • Tenure: 10.3yrs
    • Compensation: US$115.00k
  • Sara Elford (49yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$83.50k
  • Pierre-Etienne Franc (49yo)

    Director

    • Tenure: 0.5yrs

Company Information

Hydrogenics Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hydrogenics Corporation
  • Ticker: HYGS
  • Exchange: NasdaqGM
  • Founded: 1995
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$284.782m
  • Shares outstanding: 19.02m
  • Website: https://www.hydrogenics.com

Number of Employees


Location

  • Hydrogenics Corporation
  • 220 Admiral Boulevard
  • Mississauga
  • Ontario
  • L5T 2N6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HYGTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2000
HYGSNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDOct 2000
HX5ADB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2000

Biography

Hydrogenics Corporation, together with its subsidiaries, designs, develops, and manufactures hydrogen generation products based on water electrolysis technology; and fuel cell products based on proton exch ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:39
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.