FUELCELL ENERGY INC's gross profit margin for the second quarter of its fiscal year 2013 has increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. FUELCELL ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 39.97% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Net Sales ($mil) | 42.44 | 24.15 |
| EBITDA ($mil) | -6.15 | -6.35 |
| EBIT ($mil) | -7.2 | -7.76 |
| Net Income ($mil) | -7.37 | -8.29 |
| Balance Sheet | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 66.73 | 77.3 |
| Total Assets ($mil) | 207.49 | 215.47 |
| Total Debt ($mil) | 29.75 | 23.26 |
| Equity ($mil) | 57.56 | 95.89 |
| Profitability | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Gross Profit Margin | 7.92 | 6.65 |
| EBITDA Margin | -14.48 | -26.3 |
| Operating Margin | -16.96 | -32.12 |
| Sales Turnover | 0.69 | 0.56 |
| Return on Assets | -19.42 | -13.48 |
| Return on Equity | -75.57 | -33.63 |
| Debt | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Current Ratio | 1.47 | 1.71 |
| Debt/Capital | 0.34 | 0.2 |
| Interest Expense | 0.57 | 0.58 |
| Interest Coverage | -12.54 | -13.49 |
| Share Data | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Shares outstanding (mil) | 191.93 | 185.78 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.04 | -0.06 |
| Book value / share | 0.3 | 0.52 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2332120.0 | 1230824.0 |
SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 4.73 indicates a significant premium versus the S&P 500 average of 2.42 and a premium versus the industry average of 3.44. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, FUELCELL ENERGY INC proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
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Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCEL NM | Peers 26.75 | FCEL NM | Peers 17.75 | |||||||||||||||||||||
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Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. FCEL's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FCEL's P/CF is negative making the measure meaningless. |
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| Price/Projected Earnings |
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Price to Earnings/Growth |
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| FCEL NM | Peers 24.45 | FCEL NA | Peers 1.07 | |||||||||||||||||||||
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Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. FCEL's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
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Earnings Growth |
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| FCEL 4.73 | Peers 3.44 | FCEL 0.00 | Peers 1.09 | |||||||||||||||||||||
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Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FCEL is trading at a significant premium to its peers. |
Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. The growth rate for FCEL is not available. |
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| Price/Sales |
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Sales Growth |
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| FCEL 1.89 | Peers 2.13 | FCEL 18.56 | Peers 4.40 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FCEL is trading at a discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. FCEL has a sales growth rate that significantly exceeds its peers. |
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