These companies are oftentimes highly inclined to improve their CO2 footprint in order to receive better ESG ratings, and at the same time, these are low-risk customers as their strong balance sheets and cash flows mean that the risk of liquidity or solvency issues is negligible. three years from now, with more projects being in the pipeline both in the US and in overseas markets such as Europe.Ĩ0% of Plug Power's customers are what the company calls blue chip customers, which includes companies such as Amazon ( AMZN). Plug Power will have at least 5 hydrogen plants running in the US in 2024, i.e. The company is, on top of that, also working on other ventures that are not ready to be commercialized yet, such as powering aircraft with hydrogen. Plug Power's green hydrogen can be used for powering trucks, busses, and other vehicles, while the company is also providing environmentally friendly alternatives to diesel generators in the megawatt scale range that can be used by utilities, for example. Through a network of global partnerships, including with Brookfield Renewable Partners ( BEP), Plug Power is working on growing the g reen hydrogen industry globally:
Plug Power, as a turnkey provider in a market leadership position for this technology, is well-positioned to capitalize on this megatrend. is active in an absolute growth industry, as hydrogen fuel cells will see huge demand growth in coming years as they allow for an environmentally friendly alternative to other fuels. Due to non-existent profits PLUG can't be valued on an earnings basis, but shares trade for around 30x this year's revenue, which is quite expensive. It should be noted, however, that the analyst consensus price target has been lowered in recent months, and may continue to be lowered going forward. Analysts are pretty bullish on the stock right now, as the consensus price target of $41 implies an upside potential of around 50% from current prices throughout the next year. is valued at $16 billion based on a diluted share count of a little less than 600 million. Since then, enthusiasm seems to have cooled, and shares have reverted back to the $20s. In early 2021, shares exploded upwards at a time when other renewable/new energy and related stocks, including EV plays, benefited from massive investor enthusiasm. Shares trade 130% higher than 12 months ago, but at the same time, shares trade at just one-third of the all-time high today.
has seen its share price move up and down violently over the last year: From a risk-reward standpoint, there may be better picks available, though, despite the fact that I believe that shares will trade materially higher in 2031. Taking a longer-term view, we can expect that Plug Power will generate positive net profits despite the fact that shares are valuing the company at a relatively high current valuation. The company is, however, not profitable yet, and the path to meaningful net profits holds some uncertainties still.
( NASDAQ: PLUG) is active in a high-growth industry, which translates into a strong long-term business growth outlook, as long as the company can capitalize on its goals and management executes well. Fokusiert/iStock via Getty Images Article Thesis
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