Ballard Power Systems (NASDAQ:BLDP) has picked up wonderfully in 2014. The fuel cell organization is up around 150%. However the awesome run is a long way from being over. In partnership with Plug Power (NASDAQ:PLUG), which has also increased more than 170% so far this year, Ballard is making various moves to develop its business. Additionally, industry conditions are suiting Ballard. Fuel cell applications are developing at a fast rate.
Solid results portray spectacular execution
Ballard is trying its hardest to tap this development, and this might be seen in its quarterly results. In the last reported first quarter, Ballard 's revenue enhanced by 13% to $14 million on a year-over-year basis. The bottom line growth was much more impressive, as Ballard reported a 61% change in loss per share to $0.03 in the first quarter compared to a loss per share of $0.09 in the prior year period. Also, for fiscal 2014, Ballard is focusing on 30% development in revenue and make back the initial investment adjusted EBITDA.
- Warning! GuruFocus has detected 2 Warning Signs with BLDP. Click here to check it out.
- BLDP 15-Year Financial Data
- The intrinsic value of BLDP
- Peter Lynch Chart of BLDP
Ballard is continuously making moves to enhance its business. It attained 23% diminishment in operating costs and a 60% change in adjusted EBITDA in the first quarter. Further, it also strengthened its liquidity position.
Opportunities in the industry
Looking ahead, Ballard has various opportunities to tap in the worldwide fuel cell market. For instance, it sees strong opportunities in telecom. Interest for telecom reinforcement power is determined by two diverse quality propositions through enlarged run time power. The first is focused at markets with questionable power grids. The second is focused at markets that oblige system strengthening for crisis situations. Ballard is as of now living up to expectations with several customers that reflect these two distinctive worth propositions.
Looking forward, Ballard sees great system strengthening open door in Germany. It is assisting Futuree, which as of late secured an agreement to deliver in excess of 50 reinforcement power systems that use Ballard's fuel cell stacks at basic sites in Germany's crisis services system. Later on, Futuree sees extra opportunities for expanding its solutions in this system.
Ballard also sees opportunities in Southeast Asia and India, where temperamental power grids are present in great numbers. In the U.S., system strengthening movement is underway, so this is an alternate development area for Ballard. The organization as of now has a robust pipeline in markets where it right now plies its exchange, including Japan, Indonesia, the Philippines, and South Africa.
Also, Ballard is making progress in new geographic areas. It has successfully finished item trials in Pakistan, Australia, and China. It is anticipating make a demonstration in the impending weeks in Myanmar, and it also has a looming trial with a significant U.S. telecom operator. For the full year, development in telecom reinforcement power is relied upon to be around 30%.
The encouraging news here is that Plug Power's products are selling quickly. Plug Power has request from Wal-Mart (WMT) for more than 1,700 Gendrive systems through the next two years. What's more, Plug Power has a strong order book. It expects to ship more than 650 Gendrive units in the second quarter. Plug Power's excess has also increased significantly, bouncing from 1,439 units in mid-April last year to 3,719 units this year. So, Ballard's partnership with Plug Power should result in a solid development later on.
Focus on new markets
Ballard is focusing on advancement stage markets. It has started a market trial of its model continuous power item in South Africa. This will support something such as 30 homes in a country group. Later in 2014, it aims to deliver the cutting edge Fcvelocity-Hd7 power module with lower cost and more extended life for the creating bus market.
For the designing services segment, notwithstanding its proceeding with work at Volkswagen (VLKAY), Ballard signed three new modest-sized building services contracts. It also won a contract from a customer obliging advancement and testing of a power module from marine applications.
The great thing about Ballard is that it has a robust asset report despite being a development stage organization. It carries a cash of $42 million, and low debt of $12 million. The organization does not have any valuation ratios yet since it is unprofitable so far, yet that could change later on. Ballard's bottom line is slated to develop 61% this fiscal year, emulated by 86% in the following year, as per Yahoo! Finance analysts. Also, considering the normal development in the fuel cell industry and Ballard's robust moves, it won't be a surprise if the stock continues picking up.