Last Updated: 15 Sep 2024
Executive Summary
FuelCell Energy Inc. (FCEL) is a manufacturer and provider of stationary fuel cell power plants for distributed base load power generation. The company has been facing financial challenges in recent years, with negative earnings per share (EPS) and EBITDA. The latest stock price of $0.48 is significantly below the analyst target price of $1.23.
Company Overview
FuelCell Energy designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants. The company's products are used in a variety of applications, including power generation, backup power, and combined heat and power (CHP). FuelCell Energy has a global presence, with operations in the United States, Europe, and Asia.
Fundamental Analysis
Revenue: FCEL's revenue has been declining in recent years. In the latest quarter, revenue was $85.27 million, a decrease of 7.1% year-over-year.
Earnings: FCEL has been reporting negative EPS in recent years. In the latest quarter, EPS was -$0.26.
Profitability: FCEL's profitability metrics are weak. The company's gross profit margin is negative, and its operating margin is also negative.
Balance Sheet: FCEL's balance sheet is weak. The company has a high level of debt and a low level of equity.
Technical Analysis
Trend: FCEL's stock price has been trending down in recent months.
Support and Resistance: The stock price is currently trading below its 50-day and 200-day moving averages.
Indicators: The relative strength index (RSI) is below 30, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for FCEL is negative. The stock price is trending down, and the company's financial performance is weak.
Long Term Outlook
The long-term outlook for FCEL is uncertain. The company's technology has the potential to be a major player in the clean energy market. However, the company faces significant challenges, including competition from other fuel cell companies and the high cost of its products.
Analyst Recommendations
The majority of analysts have a "hold" rating on FCEL. Six analysts have a "hold" rating, two have a "sell" rating, and none have a "strong buy" or "buy" rating. The average analyst target price is $1.23.
