ITM Power (NASDAQ: ITMPF) is the first R&D fuel cell business from the UK making the jump onto the British stock exchange. ITM manufacturers power-to-gas systems, H2 filling stations and electrolyzers. Currently, it is working on a module-based electrolyzer that could allow for combinations offering up to 100 MW capacity.
The British-based business designs hydrogen filling stations for renown customers such as Shell, Toyota and others. Backlog is at GBP 27 million, but ITM’s revenue is only at around GBP 2.3 million, which means it doesn’t turn a profit (yet). The market cap is at around EUR 53 million. I expect the growing interest in fuel cell companies on the stock exchange to benefit companies such as ITM Power. I think in some fields, it compares well with Hydrogenics.
Investors must understand that buying and selling shares is done at their own risk. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small and mid-cap ones, i.e., they do not represent stakes in big companies and the volatility is significantly higher. This article is not to be taken as a recommendation of what shares to buy or sell – it comes without any explicit or implicit guarantee or warranty. All information is based on publicly available sources and the assessments put forth in this article represent exclusively the author’s own opinion. This article focuses on mid-term and long-term perspectives and not short-term profit. The author may own shares in any of the companies mentioned in this article.
Author: Sven Jösting, written May 2017