FuelCell Energy: Don’t Miss the Bull RunFCEL), achieved through strategic expansion of growth assets and inventory backlog while retaining an attractive financial position, is expected to position the company strongly for sustainable long-term growth while delivering attractive shareholder returns.
Focusing on project growth
FuelCell is continuing to grow the project assets-LT and project assets-ST both on a sequential and year-over-year basis along with increasing plant completions while continuing reduction in the company’s work-in-process.
Going forward, FuelCell is focused on delivering clean and affordable energy for several key stakeholders by providing extensive grid support that is believed to benefit urban redesign, hugely implementing solar/fuel cell integration and attractively running micro-grid with CHP.
FuelCell’s well-planned financing models, project growth strategy and advanced common technology platform are projected to assist the company in pursuing a wide-range of technology markets and key applications while delivering extensive shareholder value.
A strong opportunity
FuelCell is uniquely leveraging preferred resources for distributed power generation such as on-site CHP and utility-scale, with near-term objectives of continuing to expand backlog and strategic acceleration of growth activity. Further, there’s a significant $18 billion worth of worldwide market growth potential including key growths in the markets of West Europe, North America and some Asian nations.
FuelCell is believed to have over $25 billion worth of international market growth potential for both gas and coal-powered power plants by assuming just 1% of these plants existing globally. In addition, the company has a near-term objective to develop and declare multi-MW coal plant technology application. Also, the FuelCell manufacturing company has nearly $7 billion of worldwide market expansion potential with near-term objectives of executing PPA’s, signing a strategic H2 off-take contract and tactical partner selection.
Importantly, FuelCell has strategically declared the joint-development of 5.6 MW fuel cell advanced system to deliver highly-clean steam and electricity to the research and development site of Pfizer in Gorton, Connecticut under a PPA which is expected to minimize energy costs, support clean air efforts while enhancing its carbon footprint along with providing power reliability to a vast 160 acre campus through superior grid-independent capability.
The impressive project execution capability of FuelCell both standalone and in collaboration with other energy providers is estimated to drive significant long-term company growth while delivering attractive shareholder returns.
Overall, the investors are advised to “sell” any equity held in FuelCell Energy Inc. considering the company’s weaknesses in several areas such as a declining profit margin of -18.00%. The PEG ratio of -0.13 signifies no growth but rather decline compared to solid industry’s growth average of 2.25. However, FuelCell has an attractive financial position with notable total cash of $58.85 million against smaller total debt of $29.21 million, which seems misguiding for investors.
Published on Apr 25, 2016By Vinay Singh