One-glance verdict
Overvalued
$7.20 our estimate vs market $10.54
Wall Street consensus: $21.10 (192.9% higher than our fair-value estimate)
46% above our estimate, beyond the bull case
Fundamentals snapshot
FuelCell Energy, Inc.
FCEL · NGM · Industrials · Electrical Equipment & Parts
Current price
$10.54
52-week range
$5.71 - $37.88
Market cap
$842.72M
Balance sheet
Healthy
-11.68x Concerning
Net cash $491.86M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -110.1% to -141.4% over 3 years.
- Risk Return on equity was -21.4% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 7.8% (peer median: 12.7%).
What this company does
FuelCell Energy, Inc.
FuelCell Energy designs and builds machines called fuel cells that create clean electricity. They make money by selling these fuel cell systems, as well as electricity and services like installing and operating the systems. This matters because it shows their business is focused on providing clean energy solutions to various customers like utilities and industrial companies.
How the company got here
FuelCell Energy, Inc. was founded in 1969 as Energy Research Corporation by chemical engineers. For decades, it focused on developing high-temperature carbonate fuel systems, receiving support from the U.S. military and utility companies. The company went public in 1992 and was renamed FuelCell Energy, Inc. It expanded globally, including a significant partnership in South Korea that later terminated. FuelCell Energy has a history of innovation, holding numerous patents for its fuel cell technology.
What it actually does
FuelCell Energy designs, manufactures, operates, and services fuel cell systems that generate clean electricity. These systems use an electrochemical reaction, similar to a battery but continuously supplied with fuel, to produce power. They can run on various fuels like natural gas, hydrogen, or biogas, and are designed for applications requiring reliable, low-emission power. The company's technology also offers potential for hydrogen production, carbon capture, and energy storage.
Product
This segment involves the sale of completed fuel cell power platforms, including the core fuel cell modules, associated balance of plant components, and spare parts. It also encompasses site engineering and construction services for these power systems. In fiscal year 2025, the 'Product' segment was FuelCell Energy's largest revenue generator, accounting for approximately 43.7% of the company's total revenue. This indicates a strong focus on selling the physical fuel cell systems and related installation services to customers.
Generation
The 'Generation' segment represents revenue generated from the operation of fuel cell power plants. This means FuelCell Energy sells the electricity, heat, or steam produced by its fuel cell systems to customers. In fiscal year 2025, this segment contributed about 30.4% of the company's total revenue. This business line highlights the company's role not just as a manufacturer, but also as a power provider, operating its own energy generation facilities.
Advanced Technologies
This segment focuses on the development and commercialization of new and emerging fuel cell applications, such as carbon capture, hydrogen production through electrolysis, and long-duration energy storage. While it represented a smaller portion of revenue in fiscal year 2025, at about 13.0%, it is a crucial area for future growth and innovation. These technologies aim to address environmental challenges and expand the company's offerings beyond traditional power generation.
Service
The 'Service' segment includes revenue from long-term service agreements for fuel cell power platforms, whether owned by FuelCell Energy or third parties. This involves ongoing maintenance, support, and performance guarantees for the installed fuel cell systems. In fiscal year 2025, this segment accounted for approximately 13.0% of the company's total revenue. This recurring revenue stream provides a stable income source and demonstrates the company's commitment to supporting its customers throughout the lifecycle of their fuel cell installations.
What management is betting on now
FuelCell Energy is focused on expanding its reach in clean energy solutions, particularly in areas like distributed power generation, hydrogen production, energy storage, and carbon capture. The company is actively pursuing strategic partnerships with other companies, such as Siemens and Fit Energy USA LP, to deploy its fuel cell technology for various applications, including data centers and large-scale power generation. Management is betting on these advancements and collaborations to drive future growth and solidify FuelCell Energy's position in the evolving energy market.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-4.70M
FY2025 Q1
$-52.77M
FY2025 Q2
$-35.17M
FY2025 Q3
$-32.08M
FY2025 Q4
$-23.88M
FY2026 Q1
$-34.71M
FY2026 Q2
$-29.00M
FY2026 Q3
$-13.53M
Revenue
$33.00M
Net income
$-44.47M
Diluted EPS
-0.64
Operating cash flow
$-12.20M
Free cash flow
$-13.53M
Fetching…
Sources
Revenue
$35.59M
Net income
$-77.91M
Diluted EPS
-1.45
Operating cash flow
$-27.30M
Free cash flow
$-29.00M
Fetching…
Sources
Revenue
$30.53M
Net income
$-22.86M
Diluted EPS
-0.49
Operating cash flow
$-33.94M
Free cash flow
$-34.71M
Fetching…
Sources
Revenue
$55.02M
Net income
$-29.87M
Diluted EPS
-0.43
Operating cash flow
$-22.86M
Free cash flow
$-23.88M
Fetching…
Sources
Revenue
$46.74M
Net income
$-91.66M
Diluted EPS
-3.78
Operating cash flow
$-26.83M
Free cash flow
$-32.08M
Fetching…
Sources
Revenue
$37.41M
Net income
$-38.05M
Diluted EPS
-1.79
Operating cash flow
$-29.89M
Free cash flow
$-35.17M
Fetching…
Sources
Revenue
$19.00M
Net income
$-28.33M
Diluted EPS
-1.42
Operating cash flow
$-45.71M
Free cash flow
$-52.77M
Fetching…
Sources
Revenue
$49.33M
Net income
$-41.42M
Diluted EPS
-7.64
Operating cash flow
$5.84M
Free cash flow
$-4.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $7.20 vs current price $10.54
Wall Street consensus is the average analyst price target: $21.10 (192.9% higher than our fair-value estimate).
Our most-likely fair value is $7.20 a share — about 31.7% below today's price of $10.54, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $491.9M - more cash than debt. Interest coverage -11.7x.
Net debt
$-491.86M
Interest coverage
-11.68x
FuelCell Energy, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
FCEL
BASELINE
FuelCell Energy, Inc.
Total debt $166.23M Interest coverage -11.68x This is the baseline the peer rows are being compared against.
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 $2.79B Interest coverage 1.35x This peer still has a real interest-payment cushion, while FCEL does not.
Total debt $2.75M Interest coverage -131.16x Neither company has much profit cushion over interest right now.
Total debt $19.00M Interest coverage -24.79x Neither company has much profit cushion over interest right now.
What you should know
The case for and against FCEL
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -110.1% to -141.4% over 3 years.
-
Return on equity was -21.4% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 7.8% (peer median: 12.7%).
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)
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Forward P/E
-10.32x
P/B
0.86x
P/S
5.47x
EV/EBITDA
-4.41x
PEG ratio
0.36x
Profitability
How much profit each dollar creates
Gross margin
-32.4%
Operating margin
-141.4%
Net margin
-113.6%
ROE
-21.4%
ROA
-7.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.16x
Current ratio
8.67x
Quick ratio
7.34x
Total debt
$166.23M
Total cash
$658.08M
Growth
How the business has been compounding
Revenue TTM
$154.14M
Revenue 5Y CAGR
22.8%
EPS TTM
-2.76
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-96.30M
Free CF TTM
$-143.89M
FCF margin
-93.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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