Is fcel a good buy?
11/18/2024 12:18am
**FuelCell Energy Inc. (FCEL) does not appear to be a good buy at this time**, and here are the reasons why:
1. **Financial Performance Concerns**:
- FCEL has a negative net profit margin of -186.57% and a net income of $-35.12 million, indicating significant losses.
- The company's revenue has decreased by 7.11% to $-35.12 million, which may raise concerns about its growth prospects.
|Ticker|Name|Date|Total Revenue|Net Profit Margin|code|market_code|
|---|---|---|---|---|---|---|
|FCEL.O|Fuelcell Energy|2023 Q4|2.2462E7|-87.5699|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q1|1.6691E7|-266.0056|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q2|2.242E7|-209.8003|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q3|2.3695E7|-186.5713|FCEL|185|
|Ticker|Name|Date|Net Income|code|market_code|
|---|---|---|---|---|---|
|FCEL.O|Fuelcell Energy|2023 Q4|-2.9458E7|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q1|-4.4399E7|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q2|-3.7656E7|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q3|-3.5123E7|FCEL|185|
2. **Profitability and Cash Flow Issues**:
- FCEL's free cash flow is negative at $-68.28 million, which could suggest difficulties in generating cash to support operations and growth.
- The company has a high debt-to-equity ratio of 0.19, which may indicate a heavy burden of debt.
|Ticker|Name|Date|Debt-to-Equity Ratio|Debt-to-Equity Ratio YoY|code|market_code|
|---|---|---|---|---|---|---|
|FCEL.O|Fuelcell Energy|2023 Q4|0.1705302477295296|33.9204155725981|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q1|0.1723228027050265|33.61268690712968|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q2|0.1991173624249779|49.89890981720536|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q3|0.18652176481011162|20.46203193729573|FCEL|185|
|Ticker|Name|Date|Free Cash Flow|Free Cash Flow YoY|code|market_code|
|---|---|---|---|---|---|---|
|FCEL.O|Fuelcell Energy|2023 Q4|-4.6560220338E7|67.77176263673023|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q1|1.9407E7|138.4392247057397|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q2|-6.1515E7|-200.70987981929784|FCEL|185|
|FCEL.O|Fuelcell Energy|2024 Q3|-6.8278052478E7|-34.19507074853554|FCEL|185|
3. **Valuation Metrics Indicate Caution**:
- The P/E ratio is negative at -1.14, which often indicates that investors are not expecting positive earnings in the near future.
- The P/B ratio is 0.19, which is low and could suggest that the stock is undervalued, but it also indicates a potentially low asset base.
- The P/S ratio is 1.5, which, while not excessively high, suggests that the stock may be overvalued relative to its sales.
|Ticker|Name|Date|P/E(TTM)|code|market_code|
|---|---|---|---|---|---|
|FCEL.O|Fuelcell Energy|20240102|-6.281404|FCEL|185|
|FCEL.O|Fuelcell Energy|20240103|-6.077462|FCEL|185|
|FCEL.O|Fuelcell Energy|20240104|-6.036674|FCEL|185|
|FCEL.O|Fuelcell Energy|20240105|-5.710367|FCEL|185|
|FCEL.O|Fuelcell Energy|20240108|-5.710367|FCEL|185|
|FCEL.O|Fuelcell Energy|20240109|-5.465637|FCEL|185|
|FCEL.O|Fuelcell Energy|20240110|-5.38406|FCEL|185|
|FCEL.O|Fuelcell Energy|20240111|-5.098542|FCEL|185|
|FCEL.O|Fuelcell Energy|20240112|-4.935389|FCEL|185|
|FCEL.O|Fuelcell Energy|20240116|-4.711053|FCEL|185|
|Ticker|Name|Date|Price to Book Ratio|code|market_code|
|---|---|---|---|---|---|
|FCEL.O|Fuelcell Energy|20240102|1.019466285397799|FCEL|185|
|FCEL.O|Fuelcell Energy|20240104|0.9797468197329496|FCEL|185|
|FCEL.O|Fuelcell Energy|20240105|0.9267875321798171|FCEL|185|
|FCEL.O|Fuelcell Energy|20240108|0.9267875321798171|FCEL|185|
|FCEL.O|Fuelcell Energy|20240109|0.8870680665149681|FCEL|185|
|FCEL.O|Fuelcell Energy|20240110|0.873828244626685|FCEL|185|
|FCEL.O|Fuelcell Energy|20240111|0.827488868017694|FCEL|185|
|FCEL.O|Fuelcell Energy|20240112|0.8010092242411277|FCEL|185|
|FCEL.O|Fuelcell Energy|20240116|0.7645997140483491|FCEL|185|
|FCEL.O|Fuelcell Energy|20240117|0.7348101147997124|FCEL|185|
|Ticker|Name|Date|P/S|code|market_code|
|---|---|---|---|---|---|
|FCEL.O|Fuelcell Energy|20240102|5.638674518372044|FCEL|185|
|FCEL.O|Fuelcell Energy|20240103|5.455600670372951|FCEL|185|
|FCEL.O|Fuelcell Energy|20240104|5.418985900773134|FCEL|185|
|FCEL.O|Fuelcell Energy|20240105|5.126067743974586|FCEL|185|
|FCEL.O|Fuelcell Energy|20240108|5.126067743974586|FCEL|185|
|FCEL.O|Fuelcell Energy|20240109|4.906379126375675|FCEL|185|
|FCEL.O|Fuelcell Energy|20240110|4.833149587176037|FCEL|185|
|FCEL.O|Fuelcell Energy|20240111|4.576846199977308|FCEL|185|
|FCEL.O|Fuelcell Energy|20240112|4.430387121578034|FCEL|185|
|FCEL.O|Fuelcell Energy|20240116|4.2290058887790325|FCEL|185|
4. **Technical Analysis Signals Caution**:
- The technical analysis of FCEL shows a strong sell consensus with various indicators such as RSI, MACD, and KDJ, which typically suggest that the stock is oversold.
- The stock has a history of significant price declines, with a 52-week low, reflecting a severe erosion of value over the past year.
|Ticker|Name|Date|bollinger lower band|RSI|KDJ|MACD|code|market_code|
|---|---|---|---|---|---|---|---|---|
|FCEL.O|Fuelcell Energy|20241114|5.8072|36.9737|8.8452|-0.7259|FCEL|185|
5. **Market Sentiment and Strategic Moves**:
- FCEL has announced a reverse stock split, which is often a sign of financial distress and can lead to delisting concerns.
- The company has laid off 13% of its workforce as part of a global restructuring plan, which may indicate cost-cutting measures but also reflects the company's financial struggles.
6. **Industry and Competition**:
- The company faces challenges in the clean energy sector, with high interest rates and policy uncertainties impacting investments.
- FCEL has a 1-year price performance of -78.38%, which is significantly worse than the Industrials sector median of 29.26%.
- The company has a gross profit margin of -29.74%, which is significantly lower than the Industrials sector median of 32%.
In conclusion, while there is some potential for a rebound based on technical indicators, the negative financial data and low profitability score suggest that FCEL is not a good buy at this time. Investors should exercise caution and consider these factors before making investment decisions.
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