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
$3.68
52-week range
$2.84 - $11.70
Market cap
$786.95M
Balance sheet
Healthy
-131.16x Concerning
Net cash $226.89M. 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 Holdings plc develops and sells technology for making clean energy, mainly fuel cells that turn fuels like hydrogen into electricity. Their money comes mostly from licensing this technology and providing technical support, which is important because it means they get paid for their ideas and expertise as they help other companies build their clean energy products. This helps Ceres Power grow without having to build all the factories themselves.
How the company got here
Ceres Power Holdings plc was founded in 2001, emerging from research at Imperial College London. The company's core mission from the start was to commercialize its unique solid oxide fuel cell (SOFC) technology. A significant turning point was its initial public offering (IPO) on the London Stock Exchange in 2004, which provided capital for further development. Over the years, Ceres has focused on building strategic partnerships with major industrial players, such as Weichai Power in China and Doosan in South Korea, to gain access to manufacturing capabilities and global markets. This licensing-first approach has been central to its growth strategy, allowing it to scale its technology without the need for extensive in-house manufacturing facilities.
What it actually does
Ceres Power Holdings plc develops and licenses advanced clean energy technologies, primarily focusing on solid oxide fuel cells (SOFCs) and solid oxide electrolyzer cells (SOECs). Think of these as sophisticated components that can either generate electricity from fuels like natural gas or hydrogen, or produce green hydrogen from water using electricity. The company doesn't manufacture these components itself; instead, it licenses its patented technology and designs to other companies. These partners then use Ceres' technology to build and sell their own power generation and hydrogen production systems. This business model allows Ceres to focus on innovation and R&D, while its partners handle mass production and market distribution.
Solid Oxide Fuel Cell (SOFC) Technology
This business line centers on Ceres' technology for generating electricity. Their Solid Oxide Fuel Cells (SOFCs) can convert various fuels, including natural gas, biofuels, and hydrogen, directly into electrical power. This is useful for applications like distributed power generation for data centers, commercial buildings, and industrial sites where a reliable and efficient power source is needed. Companies that license this technology can then manufacture and sell power systems or modules that utilize Ceres' SOFC components. This segment represents a key part of Ceres' offering for clean power generation.
Solid Oxide Electrolyzer Cell (SOEC) Technology
This segment focuses on Ceres' technology for producing green hydrogen. Their Solid Oxide Electrolyzer Cells (SOECs) use electricity to split water into hydrogen and oxygen. This is a crucial technology for decarbonization, as green hydrogen can be used as a clean fuel or as a feedstock for industries like ammonia production, steelmaking, and e-fuels. Ceres licenses this SOEC technology to partners who then develop and manufacture electrolyzer modules and systems for these burgeoning hydrogen markets. This area is a significant growth driver for the company.
What management is betting on now
Ceres Power's current strategy revolves around three main priorities: securing new licensing agreements with global partners, accelerating the progress of existing licensees towards mass production, and continuously refining its core fuel cell technology for improved efficiency and lower costs. Management is focused on expanding its network of partners to drive demand for its technology and generate future royalty revenue. They are also working closely with manufacturing partners to help them scale up production efficiently. The company aims to solidify its position as a leading technology provider in the clean energy sector by focusing on commercial acceleration and execution at pace.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $3.68
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $226.9M - more cash than debt. Interest coverage -131.2x.
Net debt
$-226.89M
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 $2.72M 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 $888.48M 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 $686.63M 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
3.06x
P/S
22.93x
EV/EBITDA
-16.75x
PEG ratio
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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
$2.72M
Total cash
$229.62M
Growth
How the business has been compounding
Revenue TTM
$45.81M
Revenue 5Y CAGR
18.2%
EPS TTM
-0.31
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-26.79M
Free CF TTM
$-29.28M
FCF margin
-63.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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