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FCEL (FuelCell Energy) Altman Z-Score : -1.50 (As of Dec. 11, 2024)


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What is FuelCell Energy Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of -1.57 is in distress zone. This implies bankruptcy possibility in the next two years.

FuelCell Energy has a Altman Z-Score of -1.50, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for FuelCell Energy's Altman Z-Score or its related term are showing as below:

FCEL' s Altman Z-Score Range Over the Past 10 Years
Min: -4.78   Med: -2   Max: 21.4
Current: -1.57

During the past 13 years, FuelCell Energy's highest Altman Z-Score was 21.40. The lowest was -4.78. And the median was -2.00.


FuelCell Energy Altman Z-Score Historical Data

The historical data trend for FuelCell Energy's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

FuelCell Energy Altman Z-Score Chart

FuelCell Energy Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.78 -1.73 8.72 2.28 -0.41

FuelCell Energy Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.43 -0.41 -0.35 -1.04 -1.43

Competitive Comparison of FuelCell Energy's Altman Z-Score

For the Electrical Equipment & Parts subindustry, FuelCell Energy's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


FuelCell Energy's Altman Z-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, FuelCell Energy's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where FuelCell Energy's Altman Z-Score falls into.



FuelCell Energy Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

FuelCell Energy's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.4146+1.4*-1.6863+3.3*-0.1445+0.6*1.2549+1.0*0.0899
=-1.50

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jul. 2024:
Total Assets was $948.91 Mil.
Total Current Assets was $459.97 Mil.
Total Current Liabilities was $66.54 Mil.
Retained Earnings was $-1,600.13 Mil.
Pre-Tax Income was -35.121 + -37.656 + -44.399 + -29.458 = $-146.63 Mil.
Interest Expense was -2.555 + -2.275 + -2.338 + -2.321 = $-9.49 Mil.
Revenue was 23.695 + 22.42 + 16.691 + 22.462 = $85.27 Mil.
Market Cap (Today) was $255.92 Mil.
Total Liabilities was $203.95 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(459.968 - 66.539)/948.91
=0.4146

X2=Retained Earnings/Total Assets
=-1600.134/948.91
=-1.6863

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-146.634 - -9.489)/948.91
=-0.1445

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=255.922/203.946
=1.2549

X5=Revenue/Total Assets
=85.268/948.91
=0.0899

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

FuelCell Energy has a Altman Z-Score of -1.50 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


FuelCell Energy  (NAS:FCEL) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


FuelCell Energy Altman Z-Score Related Terms

Thank you for viewing the detailed overview of FuelCell Energy's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


FuelCell Energy Business Description

Address
3 Great Pasture Road, Danbury, CT, USA, 06810
FuelCell Energy Inc is a fuel-cell power company. FuelCell designs manufactures, sells, installs, operates, and services fuel cell products and electrolysis platforms that decarbonize power and produce hydrogen. It serves various industries such as Industrial, Wastewater treatment, Commercial and Hospitality, Data centers and Communications, Education and Healthcare, and others. Geographically, the company generates a majority of its revenue from the United States followed by South Korea.
Executives
Jason Few director, officer: CEO 2201 COLQUITT STREET, HOUSTON TX 77098
Michael S. Bishop officer: EVP, TREASURER & CFO FUELCELL ENERGY, INC., 3 GREAT PASTURE ROAD, DANBURY CT 06813-1305
Anthony Leo officer: EVP & Chief Technology Officer C/O FUELCELL ENERGY, INC., 3 GREAT PASTURE ROAD, DANBURY CT 06810
Michael Lisowski officer: EVP & Chief Operating Officer C/O FUELCELL ENERGY, INC., 3 GREAT PASTURE ROAD, DANBURY CT 06810
Althann Natica Von director TWO NORTH NINTH STREET, ALLENTOWN PA 18101
Matthew F Hilzinger director
James Herbert England director 15687 VILLORESI WAY, NAPLES FL 34110
Wilson Donna Sims director FUELCELL ENERGY, INC., 3 GREAT PASTURE ROAD, DANBURY CT 06810
Betsy B Bingham director 3 GREAT PASTURE ROAD, DANBURY CT 06810
Cynthia L Hansen director 500 CONSUMERS ROAD, NORTH YORK A6 M2J 1P8
Mark Feasel officer: EVP & Ch. Commercial Officer 3 GREAT PASTURE ROAD, DANBURY CT 06810
Joshua Dolger officer: Interim Gen Counsel & Corp Sec FUELCELL ENERGY, INC., 3 GREAT PASTURE ROAD, DANBURY CT 06810
John Christopher Groobey director 38 TROLLHAVEN LANE, ANNAPOLIS MD 21401
Jennifer D Arasimowicz officer: EVP, Gen. Counsel, CAO, Secy FUELCELL ENERGY, INC., 3 GREAT PASTURE ROAD, DANBURY CT 06810
John A Rolls director