Fuelcell Story

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FCEL -- USA Stock  

USD 16.38  1.97  10.74%

As many millenniums are trying to avoid industrials space, it makes sense to summarize FuelCell Energy a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is the firm valuation justified? I am going to cover FuelCell Energy perspective on valuation to give you a better outlook on taking a position in it.
Published over a month ago
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Ready to invest in FuelCell Energy now and quit it in two weeks?
The company currently holds 195.62 M in liabilities with Debt to Equity (D/E) ratio of 1.25, which is about average as compared to similar companies. Our trade advice tool can cross-verify current analyst consensus on FuelCell Energy and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Fuelcell Energy using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Fuelcell Energy based exclusively on its fundamental and basic technical indicators. By analyzing Fuelcell Energy's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Fuelcell Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Fuelcell Energy. We calculate exposure to Fuelcell Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Fuelcell Energy's related companies.

Fuelcell Energy Investment Alerts

Fuelcell investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Fuelcell Energy performance across your portfolios.Please check all investment alerts for Fuelcell

Fuelcell Energy Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Fuelcell value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Fuelcell Energy competition to find correlations between indicators driving the intrinsic value of Fuelcell.

How Fuelcell utilizes its cash?

To perform a cash flow analysis of Fuelcell Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Fuelcell Energy is receiving and how much cash it distributes out in a given period. The Fuelcell Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Fuelcell Energy Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (45.64 Million)

Is Fuelcell Energy valued accurately by the market?

FuelCell Energy reported the previous year's revenue of 64.91 M. Net Loss for the year was (108.78 M) with loss before overhead, payroll, taxes, and interest of (969 K).

Margins Breakdown

FuelCell profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or FuelCell Energy itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of FuelCell Energy profit margins.
Operating Margin(48.46)
EBITDA Margin(0.83)
Gross Margin(0.41)
Profit Margin(1.52)

FuelCell Energy Average Assets is relatively stable at the moment. FuelCell Energy Earnings Before Interest Taxes and Depreciation Amortization EBITDA is relatively stable at the moment. Additionally, FuelCell Energy Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. FuelCell Energy Average Assets is relatively stable at the moment. FuelCell Energy Earnings Before Interest Taxes and Depreciation Amortization EBITDA is relatively stable at the moment. Additionally, FuelCell Energy Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years.

Time to quit on FuelCell Energy is now

New expected short fall indicator falls down to -16.67. Possible price surge? FuelCell Energy is displaying above-average volatility over the selected time horizon. Investors should scrutinize FuelCell Energy independently to ensure intended market timing strategies are aligned with expectations about FuelCell Energy volatility.

Our Conclusion on FuelCell Energy

While some other entities in the electrical equipment & parts industry are either recovering or due for a correction, FuelCell Energy may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 21st of January 2021, our analysis shows that FuelCell Energy slowly supersedes the market. The company is overvalued and projects low odds of financial turmoil for the next 2 years. Our latest 30 days buy vs. sell advice on the company is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Fuelcell Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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