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Ceres Power Holdings (GB:CWR)
LSE:CWR
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Ceres Power Holdings (CWR) AI Stock Analysis

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GB:CWR

Ceres Power Holdings

(LSE:CWR)

Rating:68Neutral
Price Target:
157.00p
▲(8.95%Upside)
Ceres Power Holdings scores a 68, driven by positive corporate events and strong technical momentum. The company's financial performance shows impressive revenue growth, but persistent profitability issues and valuation concerns weigh on the score. The earnings call provided optimism with high-margin licensing deals, though market uncertainties remain.
Positive Factors
Financial Performance
2H24 revenues increased by 113% year-over-year to GBP30.2m, with gross profit up 160% to GBP17.3m, resulting in a margin of 74%.
Market Position
Ceres is well positioned to benefit in a yet to be seen acceleration of green hydrogen adoption.
Valuation
Valuation has corrected notably with Ceres’s shares down 45% over the last three months, underperforming both the European market and the broader clean technology space, providing an attractive entry point.
Negative Factors
Market Sentiment
Following the termination of the Bosch contract on 20th February and the resulting correction in the share price, a somewhat negative reaction is expected.
Partnerships
Bosch announced that it will discontinue its operations relating to the industrialisation and preparation for production of decentralised power-supply systems based on solid oxide fuel cells and decided that it will be ending its partnership with Ceres.
Share Price Performance
Shares are expected to come under pressure given sentiment and the overhang.

Ceres Power Holdings (CWR) vs. iShares MSCI United Kingdom ETF (EWC)

Ceres Power Holdings Business Overview & Revenue Model

Company DescriptionCeres Power Holdings (CWR) is a leading UK-based technology company that operates in the energy sector, specializing in the development and commercialization of fuel cell technology. The company's core product is the SteelCell®, a versatile fuel cell technology that can be used for a variety of applications, including power generation and transportation. Ceres Power focuses on providing innovative, clean energy solutions that contribute to reducing carbon emissions and enhancing energy efficiency.
How the Company Makes MoneyCeres Power Holdings generates revenue primarily through licensing its SteelCell® technology to global partners and receiving royalties from the sale of products that incorporate this technology. The company collaborates with major international companies in sectors such as automotive, energy, and manufacturing to integrate its fuel cell technology into their products, thereby expanding its market reach and application areas. Additionally, Ceres Power engages in joint development agreements and receives revenues from engineering services provided to its partners. Strategic partnerships and collaborations with industry leaders play a significant role in driving the company's earnings and enhancing its position in the clean energy market.

Ceres Power Holdings Earnings Call Summary

Earnings Call Date:Mar 21, 2025
(Q4-2024)
|
% Change Since: 101.40%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive overall sentiment, driven by record financial performance, successful licensing agreements, and strategic global partnerships. However, challenges such as the loss of Bosch as a partner and uncertainties in the US market for green hydrogen were noted.
Q4-2024 Updates
Positive Updates
Record-Breaking Year
Ceres reported a record year in terms of revenue, order intake, and gross margin. Revenue was GBP51.9 million with gross profit over GBP40 million and order intake exceeding GBP110 million.
Strong Licensing Model
The company reported significant progress with licensing agreements, specifically with Denso and Delta, which are expected to yield substantial revenue and future royalties.
Solid Financial Position
Ceres ended the year with a cash position exceeding GBP100 million, supporting future growth and reducing cash burn through restructuring efforts.
Strategic Partnerships and Global Expansion
Ceres expanded its global footprint with key partnerships in Asia, including Doosan in South Korea, Delta in Taiwan, and Denso in Japan, supporting both power and hydrogen generation sectors.
Technological Leadership
Ceres maintains a leadership position in solid oxide technology, with ongoing improvements in digitalization, modeling, and system development.
Negative Updates
Bosch Partnership Termination
Bosch decided to stop its collaboration with Ceres for SOFC production in Germany due to strategic decisions and economic pressures, impacting short-term business dynamics.
Uncertain US Market for Green Hydrogen
The US market presents challenges for green hydrogen growth, prompting Ceres to focus more on power generation opportunities in this region.
High Costs in Europe
Manufacturing costs in Europe are higher compared to Asia, impacting the competitiveness of production and contributing to Bosch's decision.
Company Guidance
In the recent 2024 full-year results meeting, Ceres highlighted a record performance across several metrics, including revenue, order intake, and gross margin. The company reported a revenue of GBP 51.9 million and a gross profit exceeding GBP 40 million. The order intake surpassed GBP 110 million, driven largely by significant licensing deals with Denso and Delta. Ceres maintains a strong financial position with over GBP 100 million in cash as of year-end and has implemented cost management strategies that reduced R&D expenses by GBP 5 million from the previous year. The company's licensing model is set to generate high gross margins, evidenced by the 70%+ margins reported. Looking forward, Ceres anticipates maintaining a cash burn of GBP 20-25 million, with a target of signing one new manufacturing license annually to sustain its growth trajectory.

Ceres Power Holdings Financial Statement Overview

Summary
Ceres Power Holdings demonstrates strong revenue growth but struggles with profitability. Despite a robust balance sheet with minimal debt, the ongoing losses and negative cash flow remain concerns. The transition from growth to profitability is necessary to enhance financial health.
Income Statement
55
Neutral
Ceres Power Holdings shows significant revenue growth with an increase from £22.3M in 2023 to £51.9M in 2024, a 132.4% growth rate. However, the company struggles with profitability, as indicated by consistent negative net and EBIT margins over the years. Despite growing revenue, the net income remains negative, reflecting operational challenges.
Balance Sheet
60
Neutral
The company's balance sheet is stable with a low debt-to-equity ratio of 0.01, indicating low leverage. The equity ratio is strong at 84.97%, showing a high proportion of assets financed by equity. However, net losses have impacted the return on equity, which is negative.
Cash Flow
50
Neutral
Cash flow analysis reveals negative free cash flow and operating cash flow, indicating cash burn. The free cash flow to net income ratio is negative due to continuous losses. However, the company maintains significant cash reserves, which provides a buffer for operational funding.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue51.89M22.32M22.13M30.78M21.12M
Gross Profit40.16M13.55M13.05M19.05M14.22M
EBITDA-18.68M-44.05M-45.11M-17.30M-7.89M
Net Income-28.30M-54.01M-45.12M-21.09M-9.88M
Balance Sheet
Total Assets181.10M206.37M261.99M299.99M147.51M
Cash, Cash Equivalents and Short-Term Investments102.47M139.96M182.32M244.58M102.19M
Total Debt2.22M2.60M3.12M3.04M4.45M
Total Liabilities27.27M25.74M24.59M19.34M26.00M
Stockholders Equity153.83M180.63M237.40M280.65M121.51M
Cash Flow
Free Cash Flow-42.68M-48.62M-68.47M-32.17M-18.42M
Operating Cash Flow-35.94M-33.90M-50.29M-20.22M-5.37M
Investing Cash Flow34.26M12.29M-38.85M-32.85M-26.58M
Financing Cash Flow-478.00K-242.00K129.00K171.00M57.47M

Ceres Power Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price144.10
Price Trends
50DMA
86.54
Positive
100DMA
74.09
Positive
200DMA
119.69
Positive
Market Momentum
MACD
7.94
Negative
RSI
82.80
Negative
STOCH
69.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CWR, the sentiment is Positive. The current price of 144.1 is above the 20-day moving average (MA) of 100.50, above the 50-day MA of 86.54, and above the 200-day MA of 119.69, indicating a bullish trend. The MACD of 7.94 indicates Negative momentum. The RSI at 82.80 is Negative, neither overbought nor oversold. The STOCH value of 69.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CWR.

Ceres Power Holdings Risk Analysis

Ceres Power Holdings disclosed 6 risk factors in its most recent earnings report. Ceres Power Holdings reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ceres Power Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
£194.97M-16.93%132.44%47.77%
67
Neutral
€2.75B23.797.73%2.83%-0.85%-30.03%
61
Neutral
£7.27M7.61-1.39%1.74%-10.88%-122.05%
50
Neutral
£81.36M-31.45%113.89%25.14%
45
Neutral
£94.04M-86.37%732.03%12.60%
41
Neutral
£15.88M-36.75%20.98%17.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CWR
Ceres Power Holdings
144.10
-62.70
-30.32%
GB:EAAS
eEnergy Group
3.95
-1.80
-31.30%
GB:LPA
LPA Group plc
55.00
-11.50
-17.29%
GB:AFC
AFC Energy
9.90
-5.16
-34.26%
GB:IKA
Ilika plc
45.50
18.50
68.52%

Ceres Power Holdings Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Ceres and Doosan Launch Mass Production of Fuel Cell Systems
Positive
Jul 28, 2025

Ceres Power Holdings and Doosan Fuel Cell have announced the commencement of mass production of fuel cell power systems using Ceres’ solid oxide technology at Doosan’s facility in South Korea. This marks a significant milestone as Doosan is the first strategic partner to begin mass production, with products targeting the AI/data center and commercial power markets. The collaboration aims to meet the increasing power demands driven by AI and contribute to the global transition to a decarbonized society. The fuel cells will initially be marketed in South Korea, with applications in stationary distributed power, data centers, renewable power grids, and marine shipping.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Ceres Power Holdings Sees Major Stake Acquisition by M&G Plc
Positive
Jul 10, 2025

Ceres Power Holdings has announced a change in its major holdings, with M&G Plc acquiring a 5.379389% voting rights stake in the company. This acquisition reflects M&G Plc’s strategic interest in Ceres’ clean energy technology, potentially strengthening Ceres’ market position and influence in the green energy sector. The transaction highlights the growing investor confidence in Ceres’ innovative solutions for decarbonizing industries and the company’s potential for future growth.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £265.00 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Ceres Power Holdings Announces Change in Voting Rights Structure
Neutral
Jul 9, 2025

Ceres Power Holdings has announced a change in its voting rights structure following an acquisition or disposal of shares by Robert Bosch GmbH. The transaction, which crossed the threshold on July 7, 2025, resulted in Bosch holding 14.14% of the voting rights in Ceres. This development could potentially influence Ceres’ strategic direction and strengthen its position in the clean energy sector, given Bosch’s significant stake and potential interest in Ceres’ innovative technologies.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Regulatory Filings and Compliance
Ceres Power Confirms Total Voting Rights as of June 2025
Neutral
Jun 30, 2025

Ceres Power Holdings plc announced that as of 30 June 2025, it has 193,809,537 Ordinary Shares in issue, each with one voting right, and holds no shares in treasury. This information is crucial for shareholders to calculate their interests under the Disclosure Guidance and Transparency Rules, impacting how they manage their stakes in the company.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Ceres Power Grants Long Term Incentive Plan Awards to Executives
Positive
Jun 27, 2025

Ceres Power Holdings plc announced the grant of Long Term Incentive Plan (LTIP) share options to key executives, including CEO Philip Caldwell and CFO Stuart Paynter. These options are tied to achieving specific commercial and share price targets over a three-year period, with an additional two-year holding requirement. This move underscores Ceres’ commitment to aligning executive incentives with long-term company performance, potentially enhancing its competitive positioning in the clean energy sector.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Business Operations and Strategy
Ceres Power Boosts Employee Engagement with Sharesave Scheme
Positive
Jun 16, 2025

Ceres Power Holdings plc has announced the grant of options under its Sharesave Scheme, allowing employees to purchase a total of 2,994,376 ordinary shares. This initiative, approved by HM Revenue & Customs, aims to promote wider employee share ownership. The options are exercisable between July and December 2028 at a price of 71.15p per share. Key managerial figures, including the CEO, Chief Product Officer, and Chief People Officer, have been granted specific options, reflecting the company’s commitment to aligning employee interests with corporate growth.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Ceres Power Achieves Milestone in Hydrogen Production with Megawatt-Scale Demonstrator
Positive
May 20, 2025

Ceres Power Holdings has announced the successful production of hydrogen at its first megawatt-scale solid oxide electrolyser cell (SOEC) demonstrator system, located at Shell’s Technology Centre in Bangalore, India. This development marks a significant milestone in the collaboration between Ceres and Shell, showcasing the maturity of Ceres’ electrolyser technology and its potential to produce hydrogen efficiently. The system is expected to contribute to India’s ambitious green hydrogen goals by providing a scalable and cost-effective solution for industrial processes. This achievement underscores Ceres’ capability to meet industrial needs and advance the clean energy ecosystem, aligning with India’s target of developing substantial green hydrogen production capacity by 2030.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Ceres Power Successfully Passes AGM Resolutions Amid Shareholder Concerns
Neutral
May 15, 2025

Ceres Power Holdings plc announced that all resolutions were passed at its Annual General Meeting, including the reappointment of auditors and the election of board members. Notably, 20.33% of votes were against the Directors’ Remuneration Report, prompting the company to engage with dissenting shareholders to address their concerns. This engagement will be reported in the 2025 Annual Report, reflecting the company’s commitment to shareholder dialogue and corporate governance.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Regulatory Filings and Compliance
Ceres Power Confirms Total Voting Rights and Shareholder Transparency
Neutral
Apr 30, 2025

Ceres Power Holdings plc announced that as of 30 April 2025, it has 193,796,363 Ordinary Shares in issue, each with one voting right, and holds no shares in treasury. This information is crucial for shareholders to determine their interest in the company under the Disclosure Guidance and Transparency Rules, reflecting the company’s transparent approach to shareholder engagement and regulatory compliance.

Regulatory Filings and Compliance
Ceres Power Confirms Total Voting Rights for April 2025
Neutral
Apr 30, 2025

Ceres Power Holdings plc announced that as of April 30, 2025, it has 193,796,363 Ordinary Shares in issue, each with one voting right, and none held in treasury. This information is crucial for shareholders to determine their notification obligations under the Disclosure Guidance and Transparency Rules.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025