We lower our fair value estimates to $4/CAD 5.50 from $5/CAD 6.50 for no-moat Ballard Power Systems following its third-quarter results. The lower valuation is due to moderating our long-term revenue growth and gross margin assumptions. We view shares as fairly valued.
Ballard boasts one of the longest histories in fuel cell technology.
Fuel cells face competition from battery electric technology in transportation end markets (Ballard’s focus).
|
Metric
|
BLDP
|
PLUG
|
BE
|
|---|---|---|---|
Price/Earnings (Normalized) | — | — | 94.74 |
Price/Book Value | 1.01 | 0.70 | 6.64 |
Price/Sales | 13.66 | 2.68 | 2.08 |
Price/Cash Flow | — | — | 29.68 |
|
Metric
|
BLDP
|
PLUG
|
BE
|
|---|---|---|---|
Quick Ratio | 11.45 | 0.91 | 2.28 |
Current Ratio | 12.57 | 2.41 | 3.64 |
Interest Coverage | −143.05 | −22.24 | −2.56 |
|
Metric
|
BLDP
|
PLUG
|
BE
|
|---|---|---|---|
Return on Assets (Normalized) | −9.67% | −12.68% | 0.61% |
Return on Equity (Normalized) | −10.43% | −18.45% | 3.95% |
Return on Invested Capital (Normalized) | −10.18% | −15.26% | 5.29% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
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GE
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ITW
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PH
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EMR
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AME
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OTIS
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CMI
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ROK
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