Close menu




August 23rd, 2021 | 13:18 CEST

Plug Power, Enapter, Ballard Power - What is the future of hydrogen?

  • Hydrogen
Photo credits: pixabay.com

In the passenger car sector, the battle for hydrogen fuel cells seems lost, as the entire automotive industry is focusing on the production of e-cars. In the commercial vehicle sector, there is still hope for the hydrogen industry. The prerequisite for this, however, is inexpensive hydrogen, and this is not yet available. Promises of subsidies due to climate protection for the hydrogen sector should give a boost, but the extreme overvaluation built up in shares from the hydrogen sector up to the end of January has not yet been completely eroded in some cases. After the FED indicated in its latest minutes that it would abandon its loose monetary policy, uncertainty is spreading among many North American hydrogen companies. Today, we take a look at three hydrogen companies.

time to read: 3 minutes | Author: Armin Schulz
ISIN: PLUG POWER INC. DL-_01 | US72919P2020 , ENAPTER AG INH O.N. | DE000A255G02 , BALLARD PWR SYS | CA0585861085

Table of contents:


    Plug Power - Split into divisions

    In January, Goldman Sachs warned that Plug Power's valuation was too high, as its enterprise value to sales ratio was 47. From a ratio of 20, investors should carefully consider an investment in these shares, as there is often a high potential for setbacks in the long term in these cases. Plug Power's stock declined from USD 75.49 at the end of January to USD 18.47 as of May 11. That still leaves the current market capitalization at a price of USD 24.23, just over USD 13.2 billion.

    On August 5, the Company presented its second quarterly figures, and they were mixed. Revenue increased to just over USD 123 million, but losses were over USD 99 million. On August 19, the Company announced that it was splitting its business into four divisions. Each of these divisions will have its own manager, effective immediately. The divisions will be Material Handling Solutions, Energy Solutions, Electrolyzer and Stationary Power divisions. By splitting them up, growth in the various divisions is expected to progress more quickly.

    Plug Power is targeting profitable results in 2024. If the figures are achieved as planned, this will result in a price-earnings ratio (P/E) of 198. The stock was unable to hold the minor uptrend formed and has fallen back into a downtrend. A test of the low of USD 18.47 from May seems possible. The chart would brighten up if the share managed a closing price above USD 30.25. Currently, interested investors should wait until the downward trend can be left.

    Enapter - Sales are growing rapidly

    Enapter is a German-based company founded in 2004 that manufactures anion exchange membrane (AEM) electrolyzers. These can be used to produce green hydrogen from renewable energy and water. The technology is very advanced, and as a result, it has won several awards. In June alone, the Company received the NRW.Global Business Award and was named a Technology Pioneer by the World Economic Forum (WEF).

    On July 20, the Company announced its half-year figures, which came as quite a positive surprise. Sales increased from EUR 600,000 to EUR 2 million, and orders for EUR 6.1 million have already been received. Thus, the annual forecast of EUR 9.2 million should be very well achievable. The year-end EBITDA is expected at EUR -7.5 million. The balance sheet has been significantly strengthened compared to the end of 2020. EUR 22 million in subsidies from various funding pots has been secured, and EUR 18 million was raised from a capital increase.

    The Company is currently expanding its production facilities, developing the AEM Multicore product to market maturity and expanding international sales. By 2023, Enapter wants to have already crossed the break-even point. Currently, 23.1 million shares are outstanding, which means a current market capitalization of EUR 586 million. If the raised targets for 2022 of EUR 44.8 million and an almost unchanged loss of EUR 8.7 million are achieved, the share price should enter new spheres. At the moment, the share is moving sideways between EUR 19 and 29.

    Ballard Power - With weak figures

    Ballard Power was founded in Canada back in 1979 and has been listed on the Nasdaq stock exchange since 1995. The main focus is on producing hydrogen fuel cells for buses, trucks, trains and ships. The Company does not rely on pure hydrogen propulsion but combines hydrogen with batteries. The fuel cells generate electricity from hydrogen, which is then fed to the batteries.

    On August 5, the Company released its second-quarter numbers, and they were once again weak. Revenue was down USD 800,000 year-on-year to USD 25 million, and losses jumped over 100% from USD -10.7 million in 2020 to USD -21.9 million in the quarter just ended. That translates to a net loss of USD 0.07 per share. A positive overall result for the group is not expected until 2024 at the earliest.

    Currently, there are just over 297.6 million shares, which corresponds to a current valuation of USD 4.43 billion. Despite all the fantasy about the potential size of the hydrogen market, this market capitalization is ambitious. Jumping to 2024 and assuming the Company's expected earnings, we get a P/E ratio of 1,698. One Amazon share is 76. Despite the weak numbers, the stock has not marked any new lows but has formed a double bottom at USD 14.44. If this holds, the share can test the highs at USD 17.38.


    After a considerable hype, the hydrogen market has received a significant damper. If the promised subsidies flow, the downward trend in hydrogen companies could be stopped for the time being. At Ballard and Plug Power, the company valuations are still very high, although sales are hardly increasing or even decreasing. Enapter is a real exception at the moment, as its sales growth is accelerating and it has just started to build up international sales. There could be potential here. As an investor, you should always keep an eye on the valuation.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by André Will-Laudien on November 29th, 2022 | 11:10 CET

    Hydrogen from Qatar: Nel, Plug Power, dynaCERT and ThyssenKrupp, winners in H2 fever!

    • Hydrogen
    • greenhydrogen
    • GreenTech

    "The accelerated expansion of hydrogen supply chains is central to the transition to sustainable energy." Economics Minister Habeck welcomed the planned cooperation between German companies and Emirati producers of hydrogen. For this purpose, there is a new research cooperation between the Fraunhofer Institute and the Ministry of Energy of the United Arab Emirates. Of particular interest to Germany is the production, storage and delivery of green hydrogen to the EU. Whether the FIFA World Cup will help to deepen industrial relations in this field is not certain. But what is important is that hydrogen technology is finally gaining momentum worldwide. We take a look at the protagonists in the round-up for important investments.

    Read

    Commented by Fabian Lorenz on November 23rd, 2022 | 11:43 CET

    China causes a bang in Qatar: Opportunity for Nel ASA, Plug Power, First Hydrogen, ITM Power

    • Hydrogen
    • greenhydrogen

    Germany wanted to secure liquefied natural gas (LNG) from Qatar to reduce its dependence on Russia. But now China is digging in and securing LNG supplies from the emirate for the next 27 years. During this time, 108 million tons are to be supplied. Germany only wanted to commit for 5 years. While this does not necessarily take the German government's deal off the table, it does show that gas supplies will continue to be anything but secure or cheap in the future. And it shows how vital hydrogen will be in the future and that policymakers must push for its promotion because hydrogen from renewable energies can at least partially replace natural gas. Companies like Nel ASA, Plug Power and First Hydrogen can benefit from this. In 2022, however, only First Hydrogen was convincing.

    Read

    Commented by Armin Schulz on November 21st, 2022 | 14:22 CET

    BYD, dynaCERT, Plug Power - Sustainable shares for the portfolio

    • Hydrogen
    • greenhydrogen
    • Electromobility

    The end of fossil fuels is inevitable. The only question is how quickly we can make the transition. And the answer to that question will determine the extent of the impact of climate change. Last year alone, more than USD 6 billion was pledged to phase out fossil fuels. And this trend will only intensify. The Paris Agreement, signed by nearly 200 countries in 2016, set a goal of limiting global warming to below 2°C. Vehicles with internal combustion engines are major emitters of emissions. If we succeed in reducing CO2 emissions here, we will be closer to achieving the targets. Today we take a look at three companies that are helping to make mobility more environmentally friendly.

    Read