This Clean Energy Stock Has Better 1-Year Returns Than Tesla, Nio, Apple And Plug Power

FuelCell Energy Inc (NASDAQ: FCEL), a stock that was listed in the early 1990s and peaked at the $5,000 mark two decades ago only to come down to trade in single-digit levels, has still fetched handsome returns over the past one year.

The Danbury, Connecticut-based company's stock has in the past quarter seen a jump in revenue and a narrower loss, and while it is much smaller in stature and size with a market capitalization of $2.25 billion, the stock has fared better than bigger companies such as Tesla Inc (NASDAQ: TSLA), Apple Inc (NASDAQ: AAPL), Nio Inc (NYSE: NIO) and peer Plug Power Inc (NASDAQ: PLUG).

FuelCell designs, manufactures, operates and services Direct Fuel Cell power plants. The company relies mostly on services for revenue and has in the past quarter reported a handsome jump in those numbers. But that's a one-off and the year-to-date numbers still fail to impress. 

The Financial Conundrum: The company reported third-quarter numbers earlier this week. Revenue jumped 43% to $26.8 million for the quarter ended July 31, lifted by a $7.2 million increase in service agreements and license revenues. Analysts were expecting $20.69 million. Loss per share narrowed to $0.04 from $0.07, beating the estimate of $0.05.

It reported a backlog of $1.3 billion during the quarter was down 2.25%, implying it is not securing any big contracts. 

Through July 31, FuelCell Energy sold about 44 million shares under the Open Market Sales Agreement, generating net proceeds of $369 million. The company ended the third quarter with cash and cash equivalents worth $494 million, compared with $192.1 million as of Oct. 31, 2020.

Shares jumped about 9% in the week after those announcements. 

FuelCell, which reports earnings on a calendar year basis, has improved its year-to-date revenue but now has a wider loss. Revenue rose a little over 1% to $19.9 million, compared with a year ago. Net loss widened to $76.87 million so far this year, from $70.2 million a year ago.

FuelCell shares had shot up in February this year on speculation that President Joe Biden’s administration might lift spending on hydrogen fuel cells.

See Also: FuelCell Energy Charges Up After Earnings: What's Next For The Stock?

Return Over 1-Year: Here’s how FuelCell Energy’s stock performance stacks up against major companies and peers in the clean energy industry in the last 12-months: 

FuelCell Energy shares are down 38.27% so far this year as of Friday’s close. The stock is however up from $2.59 a share in September last year to $6.55, a return of 152.9%. On a five-year basis, the stock is down 89.68%.

Tesla shares are up 4.07% so far this year. The stock is up from $449.39 a share last September to $759.49, a return of 69%. On a five-year basis, Tesla stock has returned 1,730.54% gains.

Nio shares are down 29.87% so far this year. The stock is up from $18.81 a share in September last year to $37.51, a return of 99.42%. On a five-year basis, the U.S.-listed Nio has returned 278.89% gains.

Plug Power shares are down 17.7% so far this year. The stock is up from $13.36 a share in September last year to $26.4, a return of 98.13%. On a five-year basis, Plug Power has returned 1523.9% gain.

Photo: Courtesy of Fuel Cell Energy