Summary Fuel Cell should become profitable once 60 MW of generation capacity is reached according to management.
By 2020 Fuel cell will likely surpass that capacity and become a profitable energy distributor as well as power plant manufacturer.
Tax credits make FC tech more economic and price competitive. Don't forget low land usage compared to other clean energy technology.
Fuel Cells past inability to make a profit is not a hindrance but, a deep value opportunity.
At current prices, Fuel Cell remains undervalued. Good news has not made a large impact on share price.
The March 8 Fuel Cell Energy (FCEL) earnings call showed the firm could become profitable in 2019. CEO Chip Bottone and CFO Mike Bishop lay out a clear path; profits will come from generation revenue. If you recall from previous earnings calls Bottone and Bishop repeatedly state that annual product sales of 45 MW or annual generation of 60 MW are enough business to reach profitability. This most recent call solidifies my belief that Fuel Cell will become profitable by the end of 2019 early 2020. In this article, I will discuss the most recent earnings call, the path to profitability, fuel cell related tax credits, and long duration energy storage. |