Why Ballard Power Systems (BLDP) Is Down Today (Update)

Update (4:15 p.m.): Updated with Wednesday market close information.

NEW YORK (TheStreet) -- Ballard Power Systems  (BLDP) plunged more than 22% to a low of $4.15 on Wednesday as Plug Power  (PLUG) led the volatile fuel-cell sector down again.

The stock closed down 22.96% to $4.16, which was $1.26 less than its previous closing price of $5.40.

Plug Power soared 49%, its best daily percentage increase since early January, on Tuesday, but the stock plummeted again on Wednesday. It fell 23.94% to $6.45, down $2.03 from its previous close of $8.48, and hit a low of $6.26 for the day.

Ballard provides fuel cell stacks to Plug Power for its more than 2,800 GenDrive Systems.

FuelCell Energy  (FCEL) also dropped to a low of $2.38 for the day and closed down 17.53% to $2.40, 51 cents less than its previous close of $2.91.

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TheStreet Ratings team rates BALLARD POWER SYSTEMS INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BALLARD POWER SYSTEMS INC (BLDP) a SELL. This is driven by a number of negative factors, 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. Among the areas we feel are negative, one of the most important has been weak operating cash flow."

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

  • Net operating cash flow has significantly decreased to -$0.87 million or 63.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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, BALLARD POWER SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 43.59% is the gross profit margin for BALLARD POWER SYSTEMS INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -13.13% is in-line with the industry average.
  • This stock has increased by 217.64% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in BLDP do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • BALLARD POWER SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, BALLARD POWER SYSTEMS INC continued to lose money by earning -$0.21 versus -$0.47 in the prior year.
  • You can view the full analysis from the report here: BLDP Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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