NEL ASA (NLLSF) AI Stock Analysis

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NEL ASA (NLLSF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$434.60M

Dividend YieldN/A

Average Volume (3M)13.98K

Price to Earnings (P/E)―

Beta (1Y)0.68

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees394

SectorIndustrials

Sector Strength91

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding1,838,457,900

10 Day Avg. Volume9,994

30 Day Avg. Volume13,985

Financial Highlights & Ratios

PEG Ratio0.19

Price to Book (P/B)0.81

Price to Sales (P/S)0.00

P/FCF Ratio-5.28

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$0.27

Price Target Upside17.39% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering6

NEL ASA Business Overview & Revenue Model

Company DescriptionNel ASA, a hydrogen company, delivers various solutions to produce, store, and distribute hydrogen from renewable energy in Norway, the United States, Denmark, and South Korea. The company operates in two segments, Nel Hydrogen Fueling and Nel Hydrogen Electrolyser. The Nel Hydrogen Fueling segment produces H2Station hydrogen fueling stations that provide fuel cell electric vehicles with the fueling and long range as conventional fossil fuel vehicles, including cars, buses, trucks, forklifts, and other applications. The Nel Hydrogen Electrolyser segment produces and installs electrolysers for hydrogen production based on alkaline and proton exchange membrane water electrolyser technology. It serves industry, energy, and gas companies. The company was formerly known as DiaGenic ASA and changed its name to Nel ASA in October 2014. Nel ASA was founded in 1927 and is headquartered in Oslo, Norway.

How the Company Makes Money

NEL ASA Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -4.17%|

Next Earnings Date:Jul 16, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment with robust order intake and strategic partnerships balancing significant revenue decline and operational losses. While Nel faces challenges in the alkaline segment and project uncertainties, its strong cash reserves and focus on next-generation technology development provide a positive outlook.

Q1-2025 Updates

Positive Updates

Record High PEM Order Intake

In Q1 2025, Nel experienced a record high order intake for PEM solutions, the highest they've ever booked, driven by containerized solutions.

Collaboration with Samsung E&A

Nel signed a collaboration agreement with Samsung E&A, which also became their largest shareholder with a 9.1% stake after a NOK 353 million private placement.

Successful Cost Reduction Measures

Implemented cost reductions and capacity adjustments, including a temporary halt of the Herya facility, expected to reduce the cost base over 2025.

Development of Next-Generation Technologies

Continued investment in R&D for next-generation alkaline and PEM technologies, including a promising pressurized alkaline prototype development.

Healthy Cash Reserves

Nel maintains more than NOK 2 billion in cash reserves, providing a strong financial position to weather market challenges.

Significant Partnerships

Partnerships with industry leaders like Samsung E&A, General Motors, and Reliance underline Nel's strong market position and technological reliability.

Negative Updates

Significant Revenue Decline

Q1 2025 saw a 69% decline in revenue compared to the first quarter of 2024 due to lower activity in the alkaline segment.

Negative EBITDA

Nel reported an EBITDA of minus NOK 115 million for Q1 2025, highlighting continued operational losses.

Challenges in Alkaline Segment

The alkaline segment revenue dropped significantly, driven by lower activity and project milestone delays.

Risk of Project Cancellations

Projects worth NOK 300 million in the backlog are at risk of delay or cancellation due to challenging fundamentals or client financing issues.

Market Uncertainty

Market demand is currently higher for small and medium-sized projects, with large-scale projects facing regulatory and financial uncertainties.

Company Guidance

In the first quarter of fiscal year 2025, Nel reported revenues of NOK 155 million and an EBITDA of minus NOK 115 million. The company saw an order intake of NOK 311 million, with an order backlog of NOK 1.46 billion. Cash reserves stood at over NOK 2 billion, with a cash balance of NOK 2.059 billion. Compared to the previous year, revenues declined by 69%, although PEM revenues increased by 64%. The company faced lower activity levels in the alkaline segment, resulting in a 69% revenue drop. Research and development expenses were NOK 23 million for alkaline and NOK 22 million for PEM, reflecting ongoing investment in next-generation technologies. Nel also noted a private placement of NOK 353 million, positioning Samsung E&A as its largest shareholder. The company announced cost reductions, including downsizing to around 350 employees by mid-2025, aiming for a sustainable cash burn rate. Additionally, Nel's market outlook was bolstered by a collaboration agreement with Samsung E&A and a record high PEM order intake, indicating strong momentum for its containerized PEM solutions.

NEL ASA Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.27B	1.39B	1.68B	914.85M	753.10M	578.33M
	Gross Profit
544.10M	885.93M	807.87M	319.46M	201.40M	184.35M
	EBIT
-563.90M	-389.43M	-699.50M	-953.56M	-582.53M	-322.77M
	EBITDA
-213.97M	-40.87M	-334.48M	-1.00B	-1.58B	1.34B
	Net Income Common Stockholders
-545.87M	-244.34M	-855.20M	-1.17B	-1.67B	1.26B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.22B	1.86B	3.39B	3.67B	3.32B	4.06B
	Total Assets
3.43B	6.30B	7.86B	6.95B	6.01B	6.14B
	Total Debt
132.05M	260.00M	259.66M	223.05M	156.61M	121.70M
	Net Debt
-1.09B	-1.62B	-3.10B	-2.90B	-2.56B	-2.20B
	Total Liabilities
628.44M	1.33B	1.66B	1.50B	968.28M	668.38M
	Stockholders Equity
2.80B	4.98B	6.20B	5.45B	5.04B	5.47B
Cash Flow		Free Cash Flow
-830.08M	-921.89M	-1.41B	-969.32M	-826.61M	-448.08M
	Operating Cash Flow
-237.97M	-241.58M	-669.67M	-690.58M	-449.46M	-215.89M
	Investing Cash Flow
-643.40M	-581.91M	-646.81M	-403.09M	-373.62M	-294.43M
	Financing Cash Flow
-316.66M	-665.99M	1.54B	1.49B	1.22B	2.31B

NEL ASA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NLLSF		$434.60M	―	-8.29%	―	―	―
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
BLDP		$455.85M	―	-37.81%	―	―	―
BE	70 Neutral	$5.06B	―	0.86%	―	20.95%	―
PLUG	55 Neutral	$1.05B	―	-83.81%	―	-19.85%	4.94%
FCEL	49 Neutral	$146.96M	―	-20.52%	―	48.62%	0.23%
BLNK	46 Neutral	$88.92M	―	-101.00%	―	-30.11%	28.84%
HYSR		$123.97M	―	-23.21%	―	―	―

* Industrials Sector Average

Performance Comparison

NLLSF

NEL ASA

0.21

-0.46

-68.66%

BLDP

Ballard Power Systems

1.64

-1.15

-41.22%

PLUG

Plug Power

1.22

-1.75

-58.92%

FCEL

Fuelcell Energy

7.47

-21.90

-74.57%

Bloom Energy

21.43

6.30

41.64%

BLNK

Blink Charging Co

0.94

-2.30

-70.99%

HYSR

SunHydrogen

0.02

0.01

100.00%

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.