Over the past six months, FuelCell Energy has been a great trade, beating the S&P 500 by 17.5%. Its stock price has climbed to $9.66, representing a healthy 23.7% increase. This performance may have investors wondering how to approach the situation.
Is it too late to buy FCEL? Find out in our full research report, it’s free.
Why Is FuelCell Energy a Good Business?
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
1. Projected Revenue Growth Is Remarkable
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.
Over the next 12 months, sell-side analysts expect FuelCell Energy’s revenue to rise by 11.6%. While this projection is below its 28.3% annualized growth rate for the past two years, it is commendable and implies the market is forecasting success for its products and services.
2. EPS Improving Significantly
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Although FuelCell Energy’s full-year earnings are still negative, it reduced its losses and improved its EPS by 12.7% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. An inflection point could be coming soon.
3. Increasing Free Cash Flow Margin Juices Financials
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, FuelCell Energy’s margin expanded by 40.7 percentage points over the last five years. FuelCell Energy’s free cash flow margin for the trailing 12 months was negative 74.2%, and continued increases could help it achieve long-term cash profitability.
Final Judgment
These are just a few reasons FuelCell Energy is a high-quality business worth owning, and with its shares outperforming the market lately, the stock trades at $9.66 per share (or a forward price-to-sales ratio of 2.2×). Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
