Hydrogenics Sees Price Reset

System startup in Ontario, © Hydrogenics

From USD 6 to USD 12 and right back where it all started, you might say. Low revenues in quarters one and two prompted the price to dwindle. But Hydrogenics continues to offer a great outlook given all the bookings made throughout the year. Likewise, it is working on a variety of projects, particularly in China. Recently, it started up one of the world’s biggest power-to-gas systems in Ontario, Canada. All things considered, the stock price is at a truly attractive level.

Not unlike Ballard, Hydrogenics (Nasdaq: HYGS) expects that strong growth will prevail in the second half of the year. Some large projects may unexpectedly carry over from one period to the next, which means that financial results may fluctuate every three months. Increases in inventory reduced cash levels from USD 22 million at the end of 2017 to USD 15 million. Revenue totaled USD 7.6 million, at a loss of USD 2.4 million. Backlog amounted to USD 132 million. Alstom is said to place initial orders very soon. Hydrogenics has been extremely successful in upgrading trains as well as ships. The bright outlook means that current stock quotes only reflect the latest financial results, not the company’s prospects.


Risk warning

Share trading can result in a total loss of your investment. 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 may experience high stock volatility. 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 content of this article reflects the author’s opinion only. This article focuses on mid-term and long-term prospects and not short-term profit. The author may own shares in any of the companies mentioned in it.

Written by Sven Jösting


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