One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
ITM Power Plc
ITMPF · PNK · Industrials · Specialty Industrial Machinery
Current price
$1.30
52-week range
$0.80 - $2.85
Market cap
$897.26M
Balance sheet
Healthy
-42.09x Concerning
Net cash $242.57M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Revenue grew 57.7% last year.
- Risk Return on equity was -13.7% last year — the company lost money on shareholders' equity.
What this company does
ITM Power Plc
ITM Power builds and sells machines called electrolysers, which use electricity to split water and create hydrogen gas for use as a clean fuel. The company's business is important because as the world seeks alternatives to fossil fuels, the demand for hydrogen and the equipment to produce it could grow.
How the company got here
ITM Power was founded in 2000 and became the first hydrogen-focused company to be listed on the London Stock Exchange in 2004. Initially working on different fuel technologies, the company eventually focused on making machines that produce 'green' hydrogen. A key moment was opening the world's largest factory for these machines in Sheffield, England, in 2021. After a period of operational challenges, the company appointed a new CEO in late 2022 to lead a turnaround, simplifying its products and focusing on more profitable, standardized designs.
What it actually does
ITM Power builds and sells machines called electrolysers that make clean hydrogen fuel. These machines use a process called electrolysis, taking electricity from renewable sources like wind or solar power to split water into hydrogen and oxygen. Because this process uses clean energy and only produces hydrogen and oxygen, the fuel is called 'green hydrogen'. Other companies in industries like transportation and manufacturing buy these electrolysers to produce their own green hydrogen, which helps them reduce their carbon footprint and move away from fossil fuels.
Manufacturing Green Hydrogen Machines (Electrolysers)
This is the company's single, core business. ITM Power designs and manufactures its electrolyser machines, selling them to large industrial customers and energy companies. Customers pay for the complete hydrogen-producing system, which is built around ITM's core Proton Exchange Membrane (PEM) technology. The company offers different sized products for different needs, from smaller 'plug and play' units to massive modules designed for large-scale industrial plants. This single line of business accounts for all of the company's revenue (the total money it brings in from sales before any costs are taken out).
What management is betting on now
The company's main strategy is to focus on selling standardized, pre-designed electrolyser modules instead of custom-built projects. This approach is expected to be more profitable and allow them to build machines more efficiently at their large factory. Management is also investing heavily in its next-generation technology, called 'Chronos', which aims to lower the cost of producing green hydrogen and improve performance. Additionally, ITM is exploring a new business model called 'build, own, operate', where it would not only sell the machines but also own and run them to provide customers with a steady supply of green hydrogen.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $1.30
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $242.6M - more cash than debt. Interest coverage -42.1x.
Net debt
$-242.57M
Interest coverage
-42.09x
ITM Power Plc's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ITMPF
BASELINE
ITM Power Plc
Total debt $19.51M Interest coverage -42.09x 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 $2.82B Interest coverage 1.35x This peer still has a real interest-payment cushion, while ITMPF does not.
Total debt $19.69M Interest coverage -41.88x Neither company has much profit cushion over interest right now.
Total debt $166.23M Interest coverage -11.68x Neither company has much profit cushion over interest right now.
Total debt $8.29B Interest coverage 11.75x This peer still has a real interest-payment cushion, while ITMPF does not.
What you should know
The case for and against ITMPF
1 Reward
1 Risk
Rewards
-
Revenue grew 57.7% last year.
Risks
-
Return on equity was -13.7% 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)
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Forward P/E
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P/B
2.81x
P/S
31.45x
EV/EBITDA
-33.59x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
-70.0%
Operating margin
-96.7%
Net margin
-108.0%
ROE
-13.7%
ROA
-4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.07x
Current ratio
2.62x
Quick ratio
2.14x
Total debt
$19.51M
Total cash
$262.08M
Growth
How the business has been compounding
Revenue TTM
$37.79M
Revenue 5Y CAGR
66.6%
EPS TTM
-0.07
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-26.52M
Free CF TTM
$-43.64M
FCF margin
-115.5%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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