FuelCell Energy (FCEL) Plunges 10.82% Amid Financial Concerns
1min read Fuelcell Energy (FCEL) shares plummeted 10.82% today, marking the third consecutive day of decline, with a cumulative drop of 18.78% over the past three days. The stock price hit its lowest level since November 2024, experiencing an intraday decline of 11.62%.
FuelCell Energy's stock price has been under pressure due to several key factors. The company's backlog growth has been lackluster, with only a 1% average year-on-year increase over the past two years. This slow growth indicates challenges in securing new orders amidst increasing competition, which could impact future revenue streams.
Additionally, FuelCell Energy's free cash flow margin has seen a significant decline, dropping by 73.3 percentage points over the past five years. The current margin stands at a negative 161%, suggesting that the company is becoming more capital-intensive. This trend raises concerns among shareholders about the company's financial health and sustainability.
FuelCell Energy's financial position is also precarious, with $184.6 million in cash burned over the last year and $143.5 million in debt. The company has only $110.7 million in cash on its balance sheet, exposing shareholders to the risk of dilution if the company needs to raise additional capital to continue operations. This financial instability contributes to the cautious outlook on FuelCell Energy's stock, as investors remain wary of the company's ability to sustain growth without further external funding.
