FuelCell Energy (FCEL, Financial) is extremely well positioned to capture the growing market of fuel cell power vehicles announced by the key European and Asian automakers. Hence, it is not surprising to see that in fiscal 2014, FuelCell delivered a fuel cell park on time with a capacity of 15 megawatts to some major utilities in the U.S. It entered into a partnership with a key power producer of North America, which invested in the company and included an innovative utility customer concluding three key projects worth $70 million.
FuelCell completed the Bridgeport Fuel Cell Park as per schedule and in line with its customers’ expectations. In addition, the availability of the park beyond 90% is believed to be the maximum, in its entire 23,000-megawatt portfolio as calculated by Dominion. FuelCell signed three contracts with United Illuminating for the calendar year 2014 having over $75 million of grid support applications.
Moving ahead into 2015, FuelCell targets executing innovative contracts coupled with reducing costs and expanding key efforts. This is estimated to expand the competitiveness for its efficient and clean distributed generation solutions. In 2015, FuelCell is estimated to proceed with the production of 70 megawatts yearly and expansion of sales is forecasted to be achieved through the movement towards multi-megawatt projects in Europe and North America, leading to lower percentage of modules and kits.
Key statistics and conclusion
According to Yahoo! (YHOO, Financial) Finance, FuelCell has not provided any data for the trailing P/E ratio, indicating company in loss previously. However, the forward P/E looks better at 162.00. The PEG ratio of -0.71 represent no growth but decline. The profit margin of -23.82% depicts no profit but loss. The revenue per share and diluted EPS of 0.83 and -0.21 respectively signifies loss to investors.
The quarterly revenue growth of -19.60% is poorer compared to still better industry’s average of 0.00% and demonstrates continued decline in investor earnings. But the current ratio of 2.90 suggests the robustness of the company’s balance sheet. Finally, the investors are advised to forget the short-term decline and invest into FuelCell Energy Inc. looking at the solid long-term growth prospects indicated by the CAGR for the next five years per annum of 40.00%, above the industry’s average of 26.78% only and expect promising returns in a long run.
