Boston, MA 03/12/2014 (wallstreetpr) – FuelCell Energy Inc. (NASDAQ:FCEL) a global leader in the design, manufacture and operation of efficient reliable fuel cell power plants is rated as a “Sell” in the market by TheStreet, despite reporting impressive first quarter earnings in which its net loss narrowed to a low of $11.4 million down from a high of $12.5 a year ago same quarter.
FuelCell Energy Inc. (NASDAQ:FCEL) 30 day’s volume share moving average currently stands at 9.7 million shares with the company controlling a market cap of $740.1 million. The company’s current weaknesses can be seen in its disappointing return on equity ratio accompanied with poor profit margins as well as weak operating cash flows.
Highlights of the Rating
FuelCell Energy Inc. (NASDAQ:FCEL) return on equity has been an underperformer substantially declining in its recent quarter compared to that of the same quarter a year ago. The company’s return on equity ratio currently trails that of the electrical equipment industry as well as that of the S&P 500 index. The company’s gross profit margins is also languishing at low margins, coming in at 6.62%. It has substantially decreased when compared to that of the same quarter, a year ago
FuelCell Energy Inc. (NASDAQ:FCEL)net profit margin also trails that of the industry average and that of the S&P 500 index, coming in at 17.58%. The company’s net operating cash flow has dropped by 39.94% for its recent quarter earnings when compared to that of the same quarter a year ago. FuelCell cash generation rate is also lower compared to that of the industry.
FuelCell Energy Inc. (NASDAQ:FCEL) debt to equity ratio currently stands at 1.37 which is slightly lower compared to that of the industry average suggesting better debt management strategies. FuelCell quick ratio is on the other hand higher at 1.15 showing the company’s ability to meet short term cash needs. FuelCell net income has grown by 14.4% although it still trails that of the industry average and the S&P 500 index.
FuelCell Energy Inc. (NASDAQ:FCEL) was one of the losers on Tuesday trading session, going down by 16.54% to close the day at $3.28
