FuelCell (FCEL), Ballard Power (BLDP) Extend Rally

Tickers in this article: BLDP FCEL

NEW YORK ( TheStreet) --  FuelCell  and Ballard Power Systems  are extending Wednesday's rally through Thursday's trading session.

By early afternoon, FuelCell had added 7.7% to $1.95. Trading volume of 9.8 million was nearly double its three-month daily average of 5.3 million.

Ballard Power was up 9% to $3.65, with trading volume of 9 million more than three times its three-month average.

The companies were pulled higher on Wednesday after fellow alternative fuel cell maker Plug Power   announced a multi-site GenKey purchase order from Wal-Mart .

FCEL ChartFCEL data by YCharts

Also See: Plug Power Announces Wal-Mart Deal

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

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

"We rate BALLARD POWER SYSTEMS INC (BLDP) a SELL. This is driven by a few notable 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 disappointing return on equity and weak operating cash flow."

TheStreet Ratings team rates FUELCELL ENERGY INC as a Sell with a ratings score of D-. The team has this to say about their recommendation:

"We rate FUELCELL ENERGY INC (FCEL) 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, poor profit margins, weak operating cash flow and generally high debt management risk."

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, FUELCELL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FUELCELL ENERGY INC is currently extremely low, coming in at 6.62%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -17.58% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$18.77 million or 39.94% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio of 1.37 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, FCEL's quick ratio is somewhat strong at 1.15, demonstrating the ability to handle short-term liquidity needs.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Electrical Equipment industry average. The net income increased by 14.4% when compared to the same quarter one year prior, going from -$11.34 million to -$9.70 million.

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