Ballard Power Systems Inc. (NASDAQ: BLDP)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001453015
Market Cap 657.68 Mn
P/B 1.08
P/E -5.49
P/S 7.29
ROIC (Qtr) -19.95
Div Yield % 0.00
Rev 1y % (Qtr) 120.26
Total Debt (Qtr) 22.56 Mn
Debt/Equity (Qtr) 0.04
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About

Investment thesis

Bull case

  • Healthy cash reserves of 525.74M provide 160.39x coverage of short-term debt 3.28M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 708.91M provides 31.42x coverage of total debt 22.56M, indicating robust asset backing and low credit risk.
  • Tangible assets of 708.91M provide exceptional 40.20x coverage of deferred revenue 17.63M, showing strong service capability backing.
  • Cash reserves of 525.74M provide ample 161.77x coverage of acquisition spending 3.25M, enabling strategic growth opportunities.
  • Long-term investments of 54.68M provide solid 2.84x coverage of long-term debt 19.28M, indicating strategic financial planning.

Bear case

  • Investment activities of (17.32M) provide weak support for R&D spending of 67.71M, which is -0.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (92M) provides insufficient coverage of deferred revenue obligations of 17.63M, which is -5.22x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (92M) shows concerning coverage of stock compensation expenses of 7.31M, with a -12.58 ratio indicating potential earnings quality issues.
  • Free cash flow of (104.33M) provides weak coverage of capital expenditures of 12.33M, with a -8.46 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (117.82M) show weak coverage of depreciation charges of 4.08M, with a -28.86 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.18 2.28
EV to Cash from Ops. EV/CFO -1.43 37.14
EV to Debt EV to Debt 5.82 34.39
EV to EBIT EV/EBIT -1.11 27.71
EV to EBITDA EV/EBITDA -1.06 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF -1.26 133.36
EV to Market Cap EV to Market Cap 0.20 1.04
EV to Revenue EV/Rev 1.46 39.88
Price to Book Value [P/B] P/B 1.08 6.22
Price to Earnings [P/E] P/E -5.49 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) -59.12 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 57.58 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.22 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 63.97 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 29.87 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) 63.97 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) 63.57 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) 67.50 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 20.42 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 88.35 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.62
Cash Payout Ratio Cash Payout Ratio 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 7.03 3.01
Current Ratio Curr Ratio (Qtr) 8.33 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.38
Interest Cover Ratio Int Coverage (Qtr) -59.12 12.34
Times Interest Earned Times Interest Earned (Qtr) -59.12 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -126.00 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) -130.55 -7,413.30
EBT Margin % EBT Margin % (Qtr) -132.76 -9,015.79
Gross Margin % Gross Margin % (Qtr) -3.70 -32.61
Net Profit Margin % Net Margin % (Qtr) -132.80 -7,962.06