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Plug Power (PLUG)
NASDAQ:PLUG
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Plug Power
(NASDAQ:PLUG)43Neutral
Positive Factors
Operational Strategy
Project 'Quantum Leap' aims to lower expenses and reduce cash burn by focusing on core businesses.
Negative Factors
Earnings
Plug reported 4Q24 results that missed consensus estimates, with revenue of ~$191.5M coming in lower than the respective estimates of ~$314.6M and ~$262.4M.
Market Challenges
The ending of the green hydrogen partnership with Fortescue highlights challenges in the global green hydrogen market.
Plug Power (PLUG) vs. S&P 500 (SPY)
Market Cap
$1.65B
Dividend YieldN/A
Average Volume (3M)62.75M
Price to Earnings (P/E)―
Beta (1Y)2.16
Revenue Growth-29.45%
EPS Growth-10.79%
CountryUS
Employees3,868
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)-2.52
Shares Outstanding925,178,100
10 Day Avg. Volume67,260,639
30 Day Avg. Volume62,746,684
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.50
Price to Cash Flow (P/CF)-2.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.18Price Target Upside22.47% Upside
Rating ConsensusHold
Number of Analyst Covering18
Plug Power Business Overview & Revenue Model
Company DescriptionPlug Power Inc. is a leading provider of comprehensive hydrogen fuel cell solutions, primarily targeting the clean energy sector. The company's core products and services include hydrogen fuel cell systems that replace conventional batteries in equipment and vehicles powered by electricity. Plug Power is actively engaged in the development of the hydrogen economy and offers turnkey solutions for the production, storage, and delivery of hydrogen, serving a variety of industries such as material handling, stationary power, and on-road applications.
How the Company Makes MoneyPlug Power makes money through the sale of its hydrogen fuel cell systems and related infrastructure solutions. The company's key revenue streams include the sale of fuel cell units, hydrogen production and storage systems, and services related to the deployment and maintenance of these systems. Additionally, Plug Power engages in strategic partnerships and collaborations with major corporations to expand its market reach and enhance its technological capabilities. These partnerships often involve joint ventures or co-development agreements that can lead to increased revenue opportunities. Furthermore, Plug Power benefits from government incentives and subsidies aimed at promoting clean energy, which can positively impact its financial performance.
Plug Power Financial Statement Overview
Summary
Plug Power is experiencing financial difficulties characterized by ongoing losses and negative cash flows. Despite some balance sheet improvements, the company faces significant challenges in achieving profitability and maintaining financial stability. Continued negative cash flows and profit margins highlight a need for operational improvements or strategic pivots to enhance financial health.Income Statement
Plug Power has shown volatile revenue performance with negative growth in 2024 compared to 2023. The company has persistently negative net profit margins, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.30
Negative
Balance Sheet
The balance sheet shows a reasonable equity ratio, but the company has faced decreasing stockholders' equity over recent years. The debt-to-equity ratio has improved in 2024 due to reduced debt levels, but the overall financial stability remains challenged by accumulating losses.55
Neutral
Cash Flow
Plug Power's cash flow statement reflects significant challenges, with consistently negative free cash flow. The operating cash flow is also negative, suggesting issues in generating cash from core operations. This could pose liquidity risks.25
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 628.81M | 891.34M | 701.44M | 502.34M | -100.47M | Gross Profit |
| 623.28M | -507.79M | -194.36M | -171.31M | -523.81M | EBIT |
| 169.94M | -1.34B | -679.55M | -437.32M | -550.26M | EBITDA |
| -1.98B | -1.26B | -632.53M | -409.57M | -550.95M | Net Income Common Stockholders |
| -2.10B | -1.37B | -724.01M | -459.96M | -561.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 667.00K | 135.03M | 2.16B | 3.87B | 1.31B | Total Assets |
| 148.60M | 4.90B | 5.76B | 5.95B | 2.42B | Total Debt |
| 1.08B | 968.85M | 898.73M | 810.15M | 715.12M | Net Debt |
| -667.00K | 833.82M | 208.10M | -1.67B | -597.29M | Total Liabilities |
| 1.37M | 2.00B | 1.70B | 1.34B | 910.10M | Stockholders Equity |
| 147.24M | 2.90B | 4.06B | 4.61B | 1.51B |
| Cash Flow | Free Cash Flow | |||
| -1.06B | -1.80B | -1.29B | -551.44M | -206.53M | Operating Cash Flow |
| -728.64M | -1.11B | -828.62M | -358.18M | -156.31M | Investing Cash Flow |
| -402.36M | 728.05M | -679.37M | -1.74B | -95.33M | Financing Cash Flow |
| 983.17M | 6.12M | -77.46M | 3.60B | 1.52B |
Plug Power Technical Analysis
Neutral
1.78
Price Trends
2.06
Negative
2.12
Negative
2.27
Negative
Market Momentum
-0.10
Negative
49.85
Neutral
87.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLUG, the sentiment is Neutral. The current price of 1.78 is above the 20-day moving average (MA) of 1.68, below the 50-day MA of 2.06, and below the 200-day MA of 2.27, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 87.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLUG.
Plug Power Risk Analysis
Plug Power disclosed 52 risk factors in its most recent earnings report. Plug Power reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Plug Power Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $5.32B | ― | -5.49% | ― | 10.53% | 90.76% | |
49 Neutral | $556.92M | ― | -45.73% | ― | 20.29% | -106.22% | |
43 Neutral | $1.65B | ― | -90.88% | ― | -29.45% | -10.79% | |
38 Underperform | $139.34M | ― | -17.27% | ― | -9.13% | 1.93% | |
38 Underperform | $16.98M | ― | -167.38% | ― | 141.23% | 69.50% |
* Industrials Sector Average
Performance Comparison
PLUG
Plug Power
1.78
-1.88
-51.37%
FCEL
Fuelcell Energy
6.59
-26.71
-80.21%
NKLA
Nikola
0.14
-19.72
-99.30%
BE
Bloom Energy
23.08
12.62
120.65%
TSE:BLDP
Ballard Power Systems
1.78
-2.25
-55.83%
Plug Power Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: 10.56% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant cost-saving measures and improvements in certain business segments, such as electrolyzers. However, the company faced challenges with lower-than-expected revenue, significant non-cash charges, and slower market growth. The sentiment is balanced between positive structural changes and negative financial impacts.Highlights
Annualized Cost Savings from Project Quantum Leap
Plug Power announced significant structural changes to streamline its cost base, targeting annualized cost savings of $150 million to $200 million.
Improvement in Margins
In 2024, Plug Power made significant improvements in margins for services and hydrogen, expanding them by approximately $120 million compared to 2023.
Electrolyzer Business Growth
The electrolyzer business saw almost six-fold revenue growth in Q4 2024 compared to Q4 2023, despite some challenges.
DOE Approval and Progress on Limestone Plant
The DOE approval for the Limestone plant in Texas was secured in January, expected to start later in 2025 with completion 18 to 24 months from the start date.
Reduction in Cash Burn
Fourth quarter 2024 marked a meaningful reduction in cash burn, down over 70% year-over-year.
Lowlights
Revenue Below Expectations
Reported revenue for Q4 2024 came in at $191 million, and full-year revenue was $629 million, below expectations.
Non-cash Charges and Asset Impairments
Plug Power recorded non-cash charges of approximately $971 million for asset impairments and bad debt, and approximately $104 million in COGS for inventory valuation adjustments.
Market Growth Slower Than Anticipated
Market growth was slower due to several factors, including policy implementation pace and global energy security issues.
Delayed Revenue in Multiple Segments
Delays in multiple segments, including $8 million in material handling and $12 million in cryogenic business, impacted Q4 2024 revenue.
Company Guidance
In the Plug Power Fourth Quarter 2024 Earnings Call, the company provided guidance on several key metrics for the upcoming year. Plug Power announced the implementation of Project Quantum Leap, targeting annualized cost savings of $150 million to $200 million through staff reductions, product focus refinement, and facility consolidation. The company aims to improve its gross margins, which expanded by approximately $120 million in 2024 compared to 2023, excluding customer warrant charges. They anticipate increased deployments and improved facility utilization in their material handling segment, which is expected to contribute positively to gross margins. Additionally, Plug Power plans to launch a new joint venture facility in Louisiana, which will enhance hydrogen margins. The company is also focused on advancing its electrolyzer business, with expectations of significant growth in sales and bookings in 2025. Furthermore, Plug Power highlighted a reduction in cash burn by over 70% year-over-year and reported Q4 2024 revenue of $191 million, with full-year revenue at $629 million.Plug Power Corporate Events
Business Operations and StrategyFinancial Disclosures
Plug Power Launches Project Quantum Leap for Savings
Positive
Mar 3, 2025
In 2024, Plug Power made significant strides in improving cash flow and moving towards profitability by optimizing operations, consolidating facilities, and adjusting investments in response to market conditions. Despite these improvements, the company recorded non-cash impairments due to slower market development and strategic investment adjustments. Looking forward, Plug Power launched ‘Project Quantum Leap’ to further reduce expenses and enhance financial stability, expecting to save $150 million to $200 million annually. The company also reported substantial growth in its electrolyzer business and continued expansion of its hydrogen production network, positioning itself for future growth and strengthening its market presence.
Private Placements and FinancingBusiness Operations and Strategy
Plug Power Secures $1.66 Billion for Hydrogen Projects
Positive
Jan 16, 2025
On January 16, 2025, Plug Power Inc. announced it secured a $1.66 billion loan guarantee from the U.S. Department of Energy to finance the construction of up to six projects aimed at producing and liquifying zero- or low-carbon hydrogen across the United States. The first project, a green hydrogen plant in Graham, Texas, will utilize renewable energy from an adjacent wind farm and create hundreds of jobs, reflecting a significant milestone in Plug Power’s expansion of domestic manufacturing and hydrogen production capabilities. This initiative enhances U.S. energy independence, aligns with national security priorities, and strengthens the country’s leadership in clean energy innovation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.