Buy Signal on FuelCell Energy (FCEL-US)
Fuelcell is a $ 4.2 bn market cap, which delivers fuel cell power solutions. The Company also provides turnkey power generation solutions to the customers, including power plant installation, operations and maintenance. The Company's segment is fuel cell power plant production and research. The Company offers its services to various sectors, including utility companies, municipalities, universities, government entities and a range of industrial and commercial enterprises. The Company, by utilizing its Direct FuelCell (DFC) plants, is commercializing a tri-generation distributed hydrogen configuration that generates electricity, heat and hydrogen for industrial and/or transportation uses, as well as a fuel cell carbon capture solution for coal or gas-fired power plants. The Company is also developing and commercializing solid oxide fuel cell (SOFC) plants for sub-megawatt applications.
The company is expected to post a $80m revenue in 2021 and to experience a c.50% top line growth in the next few years. It is therefore a pure momentum play on the new energies/hydrogen theme. The valuation looks huge at more than 50x current sales, but can be partly justified by the scarcity of listed assets in renewable Techs, and mostly the huge gouvernment focus on renewable energies in both Europe and the US.
Short term catalyst : New green deal, Hydrogen solutions momentum.
This signal looks consistent with the Bullish reversal in the Renewable Techs sector.