Categories: Finance

FuelCell Energy (FCE) Stock Review

Whether you are investing in the stock market or looking to learn about the basics of stock trading, you’ll want to take some time to learn about the fundamentals behind FuelCell Energy (FCE) stock. This article will give you an overview of the company, recent earnings, and prospects.

Fundamentals

Having a fundamental outlook is essential when looking at a stock. There are several things you need to know about FuelCell Energy Inc. First, this company specializes in making stationary hydrogen fuel cells. It mixes gaseous hydrogen with oxygen, producing water as a byproduct. To do this, the company must strip the hydrogen from other compounds, which releases carbon emissions during production.

Even though the company has been producing declining revenue for the past four years, the company is still financially healthy and has no problems meeting short-term obligations. However, the company has not established a solid record of profits, and forecast earnings show that more losses will be experienced in the coming year.

FCEL has a quick, solid Ratio of 6.20, which indicates that the company has ample working capital. In addition, the company has a significant book value, which gives it high financial strength.

Recent earnings

On May 16, FuelCell Energy, Inc. (FCEL) released its latest earnings report. The company reported earnings of -$0.07 per share for the quarter. This was better than the EPS of the previous year’s reported figure of -$0.06 per share. However, the stock has been under a lot of pressure since then, dropping -15.0%. Despite the recent hiccup, FCEL is still on track to meet its fiscal 2020 financial targets.

In addition to the financial numbers, the company also announced an innovative new way to calculate its annual dividend. They have done this with an algorithm that uses historical reporting dates. They use this data to calculate the next earnings date, which they will announce later. The new formula aims to provide investors with a more accurate and cost-effective method of determining the company’s future cash flow. The result is a more realistic and efficient calculation of the annual dividend yield.

Prospects

Despite an impressive increase in sales in the past few years, FuelCell stock is still struggling to find a foothold. The company’s EBITDA margin has fallen from 4.4% in the first quarter to -126.3% in the fourth quarter of the year. As a result, analysts have put a hold on the stock. Wall Street expects the company to post a loss for this fiscal year.

Although the company’s revenue growth is expected to accelerate to four seven percent in the coming fiscal year, it’s not likely to report EBITDA profitability until two years from now. In addition, the company’s capital expenditures are expected to increase by 781% from last year. These investments are funded mainly by cash raised from stock dilution. However, the company is guided to spend $40 million to 50 million in FY2022.

FuelCell Energy Inc (FCEL) currently has five hold ratings from Wall Street analysts. According to these analysts, the company’s product sales have increased and expanded its access to the Asian market. As a result, there is a slight chance that the stock will rise soon. But most analysts agree that investors should continue to “hold” the store.

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