FuelCell Energy (FCEL, Financial) has entered into a joint venture with Fraunhofer IKTS for supporting a three year project with the funding of nearly €4.9 million awarded by the government of Germany. Recently, FuelCell identified New Haven, Connecticut, as the site for the second installation of a 5.6-megawatt plant order for United Illuminating, comprising of a 2.8-megawatt DFC 3000 situated at diverse sites. The other installation is expected to be in Bridgeport, which illustrates its support for the utility bridge market.
Seeing growth across the globe
The regional government of South Korea just declared a non-binding memorandum of understanding for a capacity of nearly 360 megawatts of FuelCell parks expected to get installed by 2017.
The present served market leveraging FuelCells and carbon for the company is estimated to be about $12 billion in size.
Recently, FuelCell entered into an innovative contract with the U.S. Department of Energy to capture carbon for coal-fired power plants. This technology is attracting huge interest from independent power producers and utilities coupled with the industry.
FuelCell is creating cost-effective SOFC solutions for sub megawatt markets, enabling it to utilize its present sales and service infrastructure.
FuelCell declared an agreement to sell its earlier announced 1.4-megawatt fuel cell power plant project at the University of Bridgeport to NRG Energy.
The analysts at Cowen & Co. guide the investors to look for any news of extra projects with energy major NRG Energy Inc. and regarding any performance updates from its overseas and stateside operations.
Fundamental analysis
According to Yahoo! (YHOO, Financial) Finance, the company is in loss with no data for either trailing P/E or forward P/E ratios. However, the industry’s average P/E is healthy at 19.39. The PEG ratio of -0.41 indicates no growth but decline, against the comparatively solid industry average of 2.22. The profit margin of -23.82% suggests no profit but loss. The revenue per share of 0.83 is disappointing. The quarterly revenue growth of -19.60% is poor as compared to the industry’s average of 6.00% and suggests continued decline in company’s revenue.
But the current ratio of 2.90 is healthy and represents the robustness of the company’s balance sheet. Finally, the investors are advised to forget all the lows and invest in FuelCell Energy Inc., looking at the solid long-term growth prospects indicated by the CAGR for the next five years per annum of 40.00%, above the industry’s average of 28.42% and expect promising returns in the long run.
