Why FuelCell Energy Is Poised to Underperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fuel-cell power plant manufacturer FuelCell Energy has received an alarming one-star ranking.

With that in mind, let's take a closer look at FuelCell and see what CAPS investors are saying about the stock right now.

FuelCell facts

  

Headquarters (founded)

Danbury, Conn. (1969)

Market Cap

$212.2 million

Industry

Electrical components and equipment

Trailing-12-Month Revenue

$120.6 million

Management

CEO Arthur Bottone (since 2011)

CFO Michael Bishop (since 2011)

Return on Equity (average, past 3 years)

(63.3%)

Cash/Debt

$57.5 million/$22.6 million

Competitors

Ballard Power Systems

Cummins

General Electric


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 48% of the 113 All-Star members who have rated FuelCell believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, fellow Fool Russell Carpenter (TMFEldrehad), succinctly summed up the underperform case for our community:

I've been bearish on fuel cells in general and this company in particular for almost as long as I've been a member of the CAPS community. The infrastructure challenges are simply too steep to make this technology economically viable anytime soon, and companies in this space will never provide much in the way of meaningful returns to their shareholders so long as this fact remains true.

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The article Why FuelCell Energy Is Poised to Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Cummins. The Motley Fool owns shares of Cummins and General Electric. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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