NEW YORK (TheStreet) -- Shares of FuelCell Energy  (FCEL) - Get Report rose 5.3% to $1.39 in morning trading Friday after the company announced its plans to cut costs tied to greenhouse gas removals at coal-fired power plants.

The company said Thursday that its fuel cell systems can absorb up to 90% of the carbon dioxide from smoke stacks at these plants for less than $40 a ton, which is the U.S. Department of Energy's target. 

That's slightly more than half the cost of existing carbon-capture and storage technologies, according to Bloomberg. Coal plants are the largest source of greenhouse gas emissions that are primarily blamed for climate change. Cost has been an issue despite the consensus that emissions need to be reduced.

Another benefit of the company's plan is the tolerance levels and clean-up requirements for the impurities in coal plant exhaust, along with the ability to destroy approximately 70% of smog-producing nitrogen oxide.

Separately, TheStreet Ratings team rates FUELCELL ENERGY INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate FUELCELL ENERGY INC (FCEL) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The gross profit margin for FUELCELL ENERGY INC is currently extremely low, coming in at 12.94%. Regardless of FCEL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, FCEL's net profit margin of -8.63% significantly underperformed when compared to the industry average.
• Net operating cash flow has decreased to -$25.87 million or 37.81% when compared to the same quarter last year. Despite a decrease in cash flow of 37.81%, FUELCELL ENERGY INC is in line with the industry average cash flow growth rate of -42.34%.
• FCEL's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.94%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
• The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, FUELCELL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
• Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.7%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
• You can view the full analysis from the report here: FCEL Ratings Report