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Ceres Power Holdings (GB:CWR)
LSE:CWR

Ceres Power Holdings (CWR) AI Stock Analysis

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GB

Ceres Power Holdings

(LSE:CWR)

Rating:57Neutral
Price Target:
75.00p
▲( 4.53% Upside)
Ceres Power Holdings demonstrates strong revenue growth and strategic partnerships, which are positive indicators. However, ongoing profitability issues and technical weaknesses weigh on the stock's overall score. Positive sentiment from recent corporate events and earnings calls provides some support, but challenges such as high costs and regional market uncertainties remain significant.
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
Valuation has corrected notably, leaving significant upside to the new price target and providing an attractive entry point for exposure to a technological innovator with differentiated technology and a resilient business model.
Strategic Positioning
Ceres's strategic exposure to Asian markets provides a significant advantage during a period of uncertainty in Western markets.
Negative Factors
Contract Termination
Following the termination of the Bosch contract on 20th February and the resulting correction in the share price, a somewhat negative reaction is expected.
Share Price Pressure
Shares are expected to come under pressure given sentiment and the overhang.
Valuation Concerns
The stock’s weak share price performance leaves it with a below-average valuation vs. peers, at a 55% discount.

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 UK-based technology company specializing in the development of next-generation fuel cell technology. The company operates in the clean energy sector, focusing on solid oxide fuel cell (SOFC) technology, which is designed for a variety of applications, including power generation, transportation, and industrial sectors. Ceres Power's proprietary SteelCell technology offers a highly efficient and low-emission solution for energy conversion, aiming to support a transition towards more sustainable energy systems.
How the Company Makes MoneyCeres Power Holdings generates revenue primarily through licensing agreements and partnerships with global engineering and technology companies. The company licenses its SteelCell technology to partners who integrate it into their own systems and products. Ceres Power also earns revenue from engineering services, where it collaborates with partners on the development and integration of its technology into commercial applications. Additionally, the company may receive income from joint ventures and strategic alliances that help to scale and commercialize its fuel cell technology. These partnerships often involve milestone payments, royalties, and other revenue-sharing agreements that contribute to Ceres Power's financial performance.

Ceres Power Holdings Financial Statement Overview

Summary
Ceres Power Holdings demonstrates strong revenue growth but struggles with profitability. The balance sheet is robust with minimal debt, but ongoing losses are concerning. Cash flow is negative, though liquidity is supported by cash reserves.
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
39.51M51.89M22.32M22.13M30.78M21.12M
Gross Profit
29.57M40.16M13.55M13.05M19.05M14.22M
EBIT
74.13M-31.32M-59.40M-52.52M-27.28M-12.63M
EBITDA
-36.67M-16.03M-44.05M-45.11M-17.30M-7.89M
Net Income Common Stockholders
-40.18M-28.30M-54.01M-45.12M-21.09M-9.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
40.90M102.47M139.96M182.32M244.58M102.19M
Total Assets
47.05M181.10M206.37M261.99M299.99M147.51M
Total Debt
0.002.22M2.60M3.12M3.04M4.45M
Net Debt
-15.90M-45.27M-47.11M-60.19M-148.42M-28.51M
Total Liabilities
6.44M27.27M25.74M24.59M19.34M26.00M
Stockholders Equity
40.62M153.83M180.63M237.40M280.65M121.51M
Cash FlowFree Cash Flow
-37.24M-42.68M-48.62M-68.47M-32.17M-18.42M
Operating Cash Flow
-31.66M-35.94M-33.90M-50.29M-20.22M-5.37M
Investing Cash Flow
37.62M34.26M12.29M-38.85M-32.85M-26.58M
Financing Cash Flow
-476.00K-478.00K-242.00K129.00K171.00M57.47M

Ceres Power Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price71.75
Price Trends
50DMA
62.26
Positive
100DMA
97.81
Negative
200DMA
147.74
Negative
Market Momentum
MACD
2.76
Negative
RSI
50.84
Neutral
STOCH
30.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CWR, the sentiment is Negative. The current price of 71.75 is above the 20-day moving average (MA) of 67.00, above the 50-day MA of 62.26, and below the 200-day MA of 147.74, indicating a neutral trend. The MACD of 2.76 indicates Negative momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$4.46B11.945.17%249.36%4.00%-12.35%
GBCWR
57
Neutral
£137.89M-16.93%132.44%47.77%
GBLPA
53
Neutral
£6.94M7.61-2.03%1.74%8.45%-137.73%
GBAFC
50
Neutral
£86.06M-56.78%1663.00%5.93%
GBIKA
45
Neutral
£57.16M-20.56%113.89%25.14%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CWR
Ceres Power Holdings
68.10
-153.50
-69.27%
GB:LPA
LPA Group plc
52.50
-12.50
-19.23%
GB:AFC
AFC Energy
10.04
-12.56
-55.58%
GB:IKA
Ilika plc
35.70
7.70
27.50%

Ceres Power Holdings Earnings Call Summary

Earnings Call Date:Mar 21, 2025
(Q4-2024)
|
% Change Since: 0.28%|
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 Corporate Events

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.

Business Operations and StrategyRegulatory Filings and Compliance
Ceres Power CFO Increases Stake, Signaling Confidence in Clean Energy Strategy
Positive
Apr 28, 2025

Ceres Power Holdings plc announced that Stuart Paynter, the Chief Financial Officer, acquired 33,166 ordinary shares of the company at a price of £0.599606 each, bringing his total holdings to 47,682 shares. This transaction, notified under the UK Market Abuse Regulation, reflects confidence in the company’s strategic direction and may positively influence stakeholder perceptions, reinforcing Ceres Power’s commitment to advancing its clean energy initiatives.

Shareholder MeetingsFinancial Disclosures
Ceres Power Announces AGM and Publishes Annual Report
Neutral
Apr 11, 2025

Ceres Power Holdings plc has announced its Annual General Meeting (AGM) scheduled for May 15, 2025, in London, where it plans to welcome shareholders in person. The company has also published its Annual Report and Accounts for the year ending December 31, 2024, which are available on its website. This announcement reflects Ceres Power’s ongoing commitment to transparency and shareholder engagement, as well as its strategic focus on advancing clean energy technologies and maintaining strong industry partnerships.

Regulatory Filings and Compliance
Ceres Power Announces Total Voting Rights Update
Neutral
Mar 31, 2025

Ceres Power Holdings announced that as of March 31, 2025, the company had 193,767,824 Ordinary Shares in issue, each with one voting right, and no shares held in treasury. This figure is significant for shareholders to determine their interest in the company under the Disclosure Guidance and Transparency Rules. This announcement underscores Ceres Power’s transparency in its shareholding structure, which is crucial for maintaining investor confidence and regulatory compliance.

Business Operations and StrategyFinancial Disclosures
Ceres Power Achieves Record Growth and Strategic Partnerships in 2024
Positive
Mar 21, 2025

Ceres Power Holdings plc reported a record-breaking year in 2024, with significant financial growth and strategic partnerships. The company achieved a record order intake of £112.8 million and a revenue increase of 132% to £51.9 million. Key partnerships with Delta Electronics, Denso, and Thermax are set to expand Ceres’ technology into new markets, focusing on decarbonization solutions. Despite the termination of a contract with Bosch, Ceres anticipates stable revenue for 2025 and remains focused on building its partner portfolio and advancing technology milestones. The company’s strategic moves position it strongly in the power generation and green hydrogen markets, with ongoing projects like the collaboration with Shell for hydrogen production demonstrating its commitment to industrial decarbonization.

Financial Disclosures
Ceres Power Revises Revenue Guidance Amid Milestone Payment Uncertainty
Neutral
Mar 11, 2025

Ceres Power Holdings plc announced that it will release its financial results for the year ending December 31, 2024, on March 21, 2025, and provided a revised trading update. The company initially projected full-year revenues between £50-60 million, later refining this to £55-60 million with a gross margin of 78-80%. However, due to uncertainty over the recognition of a £5 million contracted milestone payment, Ceres reverted to its original revenue guidance of £50-60 million, confirming a gross margin over 75%. This adjustment does not affect the total revenue or cash position, and the company is working to clarify the correct accounting treatment under IFRS 15.

Regulatory Filings and Compliance
Ceres Power Announces Total Voting Rights Update
Neutral
Feb 28, 2025

Ceres Power Holdings has announced that as of February 28, 2025, the company has 193,767,824 ordinary shares in issue, each with one voting right, and holds no shares in treasury. This information is crucial for shareholders to determine their notification requirements under the Disclosure Guidance and Transparency Rules, reflecting the company’s commitment to transparency and regulatory compliance.

Regulatory Filings and Compliance
Ceres Power Confirms Total Voting Rights as of February 2025
Neutral
Feb 28, 2025

Ceres Power Holdings has announced that as of February 28, 2025, the company has 193,767,824 ordinary shares in issue, each with one voting right, and holds no shares in treasury. This information is crucial for shareholders to determine their notification requirements under the Disclosure Guidance and Transparency Rules, impacting how they manage their interests in the company.

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.