Fuelcell Energy (FCEL) AI Stock Analysis

• Market Cap: $94.30M
• Dividend Yield: N/A
• Average Volume (3M): 741.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 11.09%
• EPS Growth: 0.41%
• Country: US
• Employees: 584
• Sector: Industrials
• Sector Strength: 63
• Industry: Electrical Equipment & Parts
• EPS (TTM): -7.81
• Shares Outstanding: 21,143,772
• 10 Day Avg. Volume: 663,798
• 30 Day Avg. Volume: 741,228
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.95
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.80
• Price Target Upside: 97.31% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

Fuelcell Energy's overall stock score reflects substantial financial difficulties, with declining revenues and significant net losses impacting its financial health. While technical indicators suggest a bearish outlook, the company’s restructuring efforts and partnerships show potential for improvement. Valuation remains a concern due to negative profitability metrics. The earnings call provided some optimism with strategic initiatives, but ongoing challenges in the clean hydrogen market and persistent net losses weigh heavily on the stock’s prospects.

Positive Factors

Cost Management

Cost-cutting measures are beginning to show results, with projected reductions in R&D and capex expenses for FY2025.

Market Opportunities

Data centers represent a potential opportunity for FCEL due to the ability to deliver power quickly and the demand for low emission solutions.

Valuation

FuelCell has a market cap that is significantly lower than its net cash, suggesting potential hidden value in its stock.

Negative Factors

Financial Performance

Revenue and EBITDA for FQ1'25 missed consensus expectations, leading to a lowered Underweight rating due to uncertainty around achieving positive EBITDA margins.

Growth Uncertainty

The company continues to report losses, and there are concerns about cash usage and the need to see promised growth manifest.

Revenue

Product revenue was significantly lower than expected, contributing to a negative outlook.

Fuelcell Energy Business Overview & Revenue Model

Company Description

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. The company's SureSource power plants generate clean electricity, usable heat, water, and hydrogen. In addition, it provides engineering, procurement, and construction services; project financing services; and real-time monitoring and remote operation, online support system, preventative maintenance, parts and supplies, on-site and classroom training, and power plant refurbishment/recycling services, as well as technical services in the areas of plant operation and performance, and fuel processing. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, microgrids, food and beverage, and commercial and hospitality. The company primarily operates in the United States, South Korea, England, Germany, and Switzerland. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.

How the Company Makes Money

FuelCell Energy makes money primarily through the sale and servicing of its fuel cell power plants. The company's revenue model includes direct sales of fuel cell systems, long-term service agreements, and power purchase agreements (PPAs) where the company sells the electricity generated by its systems to customers. Additionally, FuelCell Energy earns income from government contracts and strategic partnerships aimed at advancing fuel cell technology and expanding its market reach. Key revenue streams are derived from its SureSource power plants, which are utilized for distributed power generation, and from providing ongoing maintenance and operational services to ensure optimal performance of installed systems.

Fuelcell Energy Financial Statement Overview

Summary

Fuelcell Energy faces significant financial challenges, with declining revenues and persistent net losses affecting all financial statements. While leverage is low, indicating conservative financial management, the company struggles with profitability and cash flow generation. The negative growth trends and high costs relative to revenues pose risks to financial stability and require strategic improvements for recovery.

Income Statement

Fuelcell Energy's income statement shows declining revenues over the years, with a TTM revenue of $114.44 million compared to $130.48 million in 2022. The company has negative profitability metrics, such as a negative gross profit margin and net profit margin, indicating that costs exceed revenues. The EBIT and EBITDA margins are also negative, showing ongoing operational challenges. The revenue growth rate is negative, reflecting a contraction in sales.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio, indicating conservative leverage levels, which is positive for financial stability. However, the return on equity is negative due to net losses. The equity ratio is above 50%, suggesting a strong reliance on equity financing. The declining trend in stockholders' equity from $744.25 million in 2022 to $635.21 million TTM highlights potential risks.

Cash Flow

Fuelcell Energy's cash flow statement reveals negative operating cash flow and free cash flow, pointing to cash flow challenges. The free cash flow has shown volatility with a TTM figure of -$188.88 million. The operating cash flow to net income ratio is negative, further emphasizing difficulties in generating positive cash flows from operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
114.44M	112.13M	123.39M	130.48M	69.58M	70.87M
	Gross Profit
-29.40M	-35.92M	-10.54M	-29.57M	-15.64M	-7.72M
	EBIT
-148.86M	-158.49M	-136.08M	-143.72M	-64.90M	-39.17M
	EBITDA
-97.24M	-110.87M	-74.85M	-118.75M	-73.79M	-54.99M
	Net Income Common Stockholders
-135.34M	-129.21M	-107.57M	-147.23M	-101.03M	-89.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.49M	257.26M	353.71M	458.06M	432.21M	149.87M
	Total Assets
150.53M	944.12M	955.52M	939.72M	875.25M	523.54M
	Total Debt
5.03M	25.63M	139.25M	104.29M	97.84M	182.77M
	Net Debt
-15.44M	-134.67M	-110.71M	-353.77M	-334.37M	32.91M
	Total Liabilities
125.99M	216.66M	195.22M	185.33M	169.92M	269.13M
	Stockholders Equity
8.35M	656.92M	742.35M	744.25M	702.29M	254.41M
Cash Flow		Free Cash Flow
-188.88M	-200.63M	-232.61M	-158.82M	-143.67M	-68.69M
	Operating Cash Flow
-140.35M	-152.91M	-140.25M	-112.17M	-70.44M	-36.78M
	Investing Cash Flow
-154.30M	-60.05M	-192.37M	-46.65M	-73.23M	-32.52M
	Financing Cash Flow
106.42M	122.15M	151.07M	180.58M	411.91M	221.67M

Fuelcell Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCEL, the sentiment is Negative. The current price of 4.46 is below the 20-day moving average (MA) of 5.36, below the 50-day MA of 6.40, and below the 200-day MA of 11.06, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 28.28 is Positive, neither overbought nor oversold. The STOCH value of 13.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCEL.

Fuelcell Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBAT	63 Neutral	$60.57M	5.15	10.06%	―	-13.61%	―
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%
FCEL	45 Neutral	$94.30M	―	-18.96%	―	11.09%	0.41%
CETY	45 Neutral	$20.17M	―	-161.00%	―	-54.59%	-504.44%
OPTT	44 Neutral	$56.97M	―	-80.51%	―	23.98%	52.50%
TPIC	41 Neutral	$34.27M	―	77.71%	―	-8.18%	-20.81%

Fuelcell Energy Corporate Events

FuelCell Energy Reports Q1 2025 Financial Results

FuelCell Energy reported its financial results for the first quarter of fiscal 2025, showing a revenue increase to $19.0 million, up from $16.7 million the previous year, and a narrowed gross loss of $5.2 million compared to $11.7 million. The company has made significant progress following its global restructuring, with reduced operating expenses and a focus on growth opportunities, including partnerships to capture the data center market and collaborations on large-scale electrolysis systems. Despite a net loss of $32.4 million, the company is optimistic about future revenue growth and operational improvements.

FuelCell Energy Unveils 2025 Plan and Leadership Changes

FuelCell Energy announced its 2025 Long Term Incentive Plan, which includes awards combining relative total shareholder return performance shares and time-vesting restricted stock units for its named executive officers. In addition, Shankar Achanta was appointed as Executive Vice President, Chief Product and Technology Officer, with an employment agreement that details his compensation and severance terms, reflecting the company’s strategic focus on strengthening its leadership team.