One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Ceres Power Holdings plc
CPWHF · PNK · Industrials · Electrical Equipment & Parts
Current price
$5.70
52-week range
$1.90 - $11.70
Market cap
$1.22B
Balance sheet
Healthy
-131.16x Concerning
Net cash $225.16M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
1 Risk
0 rewards · 1 risks
View details ↓What this company does
Ceres Power Holdings plc
Ceres Power develops technology for clean energy, specifically fuel cells that can create electricity or produce "green" hydrogen from various fuels. The company makes most of its money from licensing fees (payments from other companies to use its technology), letting partners like Bosch and Weichai handle the expensive job of manufacturing and selling the final products. This is important because as the world seeks cleaner energy, Ceres can focus on inventing new solutions while its larger partners manage the complex supply chains (the entire network of creating and delivering a product).
How the company got here
Ceres Power was born from over a decade of research at Imperial College London and was founded in 2001. The company's core invention is a special type of fuel cell, called a solid oxide fuel cell (SOFC), that is made with a steel core, making it more robust and lower-cost than other designs. Instead of making and selling the final products themselves, Ceres decided on a licensing business model, where they develop the core technology and then license it to large global manufacturing companies. A key turning point was in 2025 when their partner, Doosan, began mass production of systems using Ceres' technology, which started generating royalty income (a small payment to Ceres for each product sold) for the first time.
What it actually does
Ceres Power doesn't sell products you can buy in a store; instead, it develops and licenses out its advanced energy technology to large industrial companies. Think of them like a technology designer that creates the blueprint and key components for two important types of clean energy systems. One system, a fuel cell, can take fuels like natural gas or hydrogen and efficiently create electricity on-site for places like data centers or factories. The other system, an electrolyser, does the reverse: it uses electricity to create 'green' hydrogen from water, which can then be used to power industrial processes without emissions. Ceres makes money by charging its partners for access to these designs and earns ongoing payments, called royalties, as those partners sell the final products.
Solid Oxide Fuel Cells (SOFC) for Power Generation
This is Ceres' primary business, focused on licensing its technology that generates clean and efficient electricity. A fuel cell is like a continuous battery that doesn't need recharging; it creates power as long as it has fuel. Ceres' unique 'SteelCell' design allows its partners to build power systems that can run on various fuels, including natural gas and eventually pure hydrogen, making them a flexible option for providing reliable power to data centers, commercial buildings, and industrial sites. The company earns money through license fees (the initial payment to use the technology) and engineering service fees from partners like Weichai in China and Doosan in South Korea, who are building factories to produce these power systems. This segment is the most mature part of Ceres' business and is now generating its first royalty revenues.
Solid Oxide Electrolysis Cells (SOEC) for Green Hydrogen
This is a newer but growing part of the company that uses the same core technology, but run in reverse to produce clean hydrogen. An electrolyser uses electricity to split water into hydrogen and oxygen, and if the electricity comes from renewable sources like wind or solar, the hydrogen produced is called 'green hydrogen'. This green hydrogen is seen as essential for cleaning up heavy industries like steel and ammonia production. Ceres licenses this technology to partners like Shell and DENSO, who are developing large-scale systems to produce hydrogen for industrial use. While this business is at an earlier stage than the power generation side, it represents a significant future opportunity as industries look for ways to decarbonize (reduce their carbon emissions).
What management is betting on now
Management's strategy is centered on its 'asset-light' licensing model, meaning Ceres focuses on designing the technology while partners fund and build the expensive factories. A major priority is expanding its global partnerships to accelerate the commercial rollout of its technology, especially for powering data centers, which have a rapidly growing need for reliable, on-site electricity. They are also investing heavily in their electrolysis technology to capture a leading share of the future green hydrogen market. The company is focused on achieving profitability by helping its current partners scale up production, which in turn will grow Ceres' high-margin royalty income (the fees earned per product sold without having to cover manufacturing costs).
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value — vs current price $5.70
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $225.2M - more cash than debt. Interest coverage -131.2x.
Net debt
$-225.16M
Interest coverage
-131.16x
Ceres Power Holdings plc's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CPWHF
BASELINE
Ceres Power Holdings plc
Total debt $2.70M Interest coverage -131.16x This is the baseline the peer rows are being compared against.
Total debt $166.23M Interest coverage -11.68x Neither company has much profit cushion over interest right now.
Total debt $1.04B Interest coverage -10.43x Neither company has much profit cushion over interest right now.
Total debt $19.69M Interest coverage -41.88x Neither company has much profit cushion over interest right now.
Total debt $640.83M Interest coverage -11.07x Neither company has much profit cushion over interest right now.
Total debt $413.16M Interest coverage -22.96x Neither company has much profit cushion over interest right now.
What you should know
The case for and against CPWHF
0 Rewards
1 Risk
Rewards
Risks
-
Return on equity was -27.5% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
4.80x
P/S
35.52x
EV/EBITDA
-30.37x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
64.6%
Operating margin
-60.1%
Net margin
-130.6%
ROE
-27.5%
ROA
-13.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
10.54x
Quick ratio
10.28x
Total debt
$2.70M
Total cash
$227.87M
Growth
How the business has been compounding
Revenue TTM
$45.46M
Revenue 5Y CAGR
18.2%
EPS TTM
-0.30
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-26.59M
Free CF TTM
$-29.05M
FCF margin
-63.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—