Fuelcell Energy (FCEL) AI Stock Analysis

• Market Cap: $85.32M
• Dividend Yield: N/A
• Average Volume (3M): 667.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 11.09%
• EPS Growth: 0.41%
• Country: US
• Employees: 584
• Sector: Industrials
• Sector Strength: 77
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.42
• Shares Outstanding: 21,143,772
• 10 Day Avg. Volume: 745,567
• 30 Day Avg. Volume: 667,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -4.04
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.08
• Price Target Upside: 109.87% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

FuelCell Energy's overall stock score reflects significant financial challenges, evidenced by declining revenues and persistent net losses. Technical analysis indicates bearish trends, and valuation metrics are poor due to negative profitability. While the earnings call reveals some optimism with cost reductions and strategic partnerships, the company's future growth potential hinges on successful execution of its restructuring plan and improved market conditions in the clean hydrogen sector.

Positive Factors

Cost Management

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

Market Valuation

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

Strategic Partnerships

Partnership with Diversified Energy and TESIAC mark a significant step into data center power, presenting a potential growth opportunity.

Negative Factors

Cash Flow Concerns

The company continues to report losses and is estimated to have significant cash usage by the time it becomes profitable.

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.

Revenue Challenges

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 is struggling with financial challenges, including declining revenues and persistent net losses across all financial statements. While the company maintains a low leverage, profitability and cash flow generation remain significant concerns, with negative growth trends and high costs relative to revenues necessitating 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
112.13M	123.39M	130.48M	69.58M	70.87M
	Gross Profit
-35.92M	-10.54M	-29.57M	-15.64M	-7.72M
	EBIT
-158.49M	-136.08M	-143.72M	-64.90M	-39.17M
	EBITDA
-110.87M	-74.85M	-118.75M	-73.79M	-54.99M
	Net Income Common Stockholders
-129.21M	-107.57M	-147.23M	-101.03M	-89.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
257.26M	353.71M	458.06M	432.21M	149.87M
	Total Assets
944.12M	955.52M	939.72M	875.25M	523.54M
	Total Debt
156.47M	139.25M	104.29M	97.84M	182.77M
	Net Debt
8.34M	-110.71M	-353.77M	-334.37M	32.91M
	Total Liabilities
216.66M	195.22M	185.33M	169.92M	269.13M
	Stockholders Equity
716.78M	742.35M	744.25M	702.29M	254.41M
Cash Flow		Free Cash Flow
-200.63M	-232.61M	-158.82M	-143.67M	-68.69M
	Operating Cash Flow
-152.91M	-140.25M	-112.17M	-70.44M	-36.78M
	Investing Cash Flow
-60.05M	-192.37M	-46.65M	-73.23M	-32.52M
	Financing Cash Flow
122.15M	151.07M	180.58M	411.91M	221.67M

Fuelcell Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.85 is below the 20-day moving average (MA) of 3.92, below the 50-day MA of 4.84, and below the 200-day MA of 9.35, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 24.24 is Neutral, 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
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%
CBAT	59 Neutral	$74.37M	6.32	10.06%	―	-13.61%	―
TPIC	47 Neutral	$46.37M	―	77.71%	―	-8.18%	-20.81%
OPTT	44 Neutral	$76.51M	―	-80.51%	―	23.98%	52.50%
CETY	43 Neutral	$18.79M	―	-109.72%	―	-83.96%	29.71%
FCEL	42 Neutral	$85.32M	―	-18.96%	―	11.09%	0.41%

Fuelcell Energy Corporate Events

FuelCell Energy Appoints Michael Hill as EVP and CCO

FuelCell Energy announced the appointment of Michael Hill as Executive Vice President and Chief Commercial Officer, effective May 5, 2025. Hill’s previous experience includes serving as President of Global Sales at Danfoss Power Solutions. His employment agreement includes a base salary of $450,000 and a target annual bonus equal to his base salary. The agreement outlines severance terms in case of termination, including payments and COBRA premium coverage, with additional provisions for change in control scenarios.

Spark’s Take on FCEL Stock

According to Spark, TipRanks’ AI Analyst, FCEL is a Neutral.

FuelCell Energy’s overall stock score reflects significant financial challenges, evidenced by declining revenues and persistent net losses. Technical analysis indicates bearish trends, and valuation metrics are poor due to negative profitability. While the earnings call reveals some optimism with cost reductions and strategic partnerships, the company’s future growth potential hinges on successful execution of its restructuring plan and improved market conditions in the clean hydrogen sector.

To see Spark’s full report on FCEL stock, click here.

FuelCell Energy Announces Executive Departure Agreement

On April 23, 2025, FuelCell Energy, Inc. decided to terminate the employment of Mark Feasel, its Executive Vice President and Chief Commercial Officer, without cause, effective May 2, 2025. Subsequently, on April 28, 2025, the company and Mr. Feasel agreed on a separation package that includes a severance payment, accelerated stock vesting, and other benefits, contingent upon compliance with certain conditions.

Spark’s Take on FCEL Stock

According to Spark, TipRanks’ AI Analyst, FCEL is a Neutral.

FuelCell Energy’s overall stock score reflects significant financial challenges, evidenced by declining revenues and persistent net losses. Technical analysis indicates bearish trends, and valuation metrics are poor due to negative profitability. While the earnings call reveals some optimism with cost reductions and strategic partnerships, the company’s future growth potential hinges on successful execution of its restructuring plan and improved market conditions in the clean hydrogen sector.

To see Spark’s full report on FCEL stock, click here.

FuelCell Energy Approves New Incentive Plan at Annual Meeting

At the 2025 Annual Meeting of Stockholders, held between April 3 and April 17, FuelCell Energy, Inc. announced the approval of the Fifth Amended and Restated Incentive Plan by its stockholders. Additionally, the meeting saw the re-election of eight directors, approval of executive compensation, and ratification of KPMG LLP as the independent auditor for the fiscal year ending October 31, 2025. These decisions are expected to impact the company’s governance and operational strategies positively, reinforcing its commitment to sustainable energy solutions.

Spark’s Take on FCEL Stock

According to Spark, TipRanks’ AI Analyst, FCEL is a Neutral.

Fuelcell Energy’s overall stock score reflects the company’s significant financial challenges, including declining revenues and persistent net losses. While technical analysis indicates bearish trends, the earnings call provides some optimism with strategic partnerships and cost reductions. However, valuation metrics remain unattractive due to negative profitability. The company’s future growth potential hinges on successful execution of its restructuring plan and improved market conditions in the clean hydrogen sector.

To see Spark’s full report on FCEL stock, click here.

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.