Ballard's rise coincided with the rise of other similar stocks, including competitors Plug Power Inc. (PLUG) and FuelCell Energy Inc. (FCEL). The stock has increased by more than 50% in the last week of trading and traded at a volume of more than 18.6 million on Tuesday compared to its average volume of just over 1.4 million.
The Burnaby, Canada-based company has posted sales of $60.4 million and net losses of $34.5 million in the last year. The $1.86 closing price on Friday, Jan.3 was 220% greater than its previous year low.
TheStreet Ratings team rates BALLARD POWER SYSTEMS INC as a Sell with a ratings score of D-. The team has this to say about its recommendation:
"We rate BALLARD POWER SYSTEMS INC (BLDP) a SELL. This is driven by some concerns, 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 disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, BALLARD POWER SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$4.84 million or 276.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- BALLARD POWER SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, BALLARD POWER SYSTEMS INC reported poor results of -$0.47 versus -$0.39 in the prior year.
- 36.56% is the gross profit margin for BALLARD POWER SYSTEMS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -26.51% is in-line with the industry average.
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Electrical Equipment industry average. The net income increased by 49.6% when compared to the same quarter one year prior, rising from -$8.95 million to -$4.51 million.
- You can view the full analysis from the report here: BLDP Ratings Report