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    FuelCell Energy (FCEL): Assessing Valuation After Earnings Beat and Growing AI-Driven Data Center Backlog

    Simply Wall St·12/20/2025 10:14:44
    語音播報

    FuelCell Energy (FCEL) just delivered a better than expected quarter, growing revenue, narrowing losses, and expanding its $1.19 billion backlog, all while leaning hard into power hungry data center demand.

    See our latest analysis for FuelCell Energy.

    That backdrop helps explain why FuelCell Energy’s recent earnings beat and data center push have not yet reversed the bigger picture. The 1 month share price return of 27.91% contrasts sharply with a 1 year total shareholder return of negative 19.96% and an even steeper 3 year total shareholder return decline of 89.59%. This suggests momentum is improving in the short term, but the long term track record remains very weak.

    If this kind of high risk rebound story has your attention, it could be worth seeing what else is out there by exploring fast growing stocks with high insider ownership.

    With shares roughly in line with cautious analyst targets despite rapid backlog growth and ongoing losses, investors now face a key question: is this a misunderstood clean energy rebound, or is the market already pricing in future data center upside?

    Most Popular Narrative Narrative: 13% Overvalued

    FuelCell Energy last closed at $8.34, above the most widely followed fair value estimate of about $7.38. This sets up a tension between recent momentum and modeled upside.

    The partnership with Diversified Energy to deliver up to 360 megawatts to data centers in Virginia, West Virginia, and Kentucky is anticipated to drive significant revenue growth as it positions FuelCell Energy at the forefront of powering AI and high-performance computing sectors.

    Read the complete narrative.

    Curious how a loss making fuel cell maker earns that kind of price tag? The narrative leans on aggressive revenue ramp, margin repair, and a future earnings multiple rarely given to turnaround stories. Want to see the exact assumptions behind that leap?

    Result: Fair Value of $7.38 (OVERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, substantial ongoing losses and heavy reliance on unproven partnerships and technologies could easily undermine these optimistic growth and margin assumptions.

    Find out about the key risks to this FuelCell Energy narrative.

    Build Your Own FuelCell Energy Narrative

    If you want to challenge these assumptions or dig into the numbers yourself, you can build a personalized take in just a few minutes. Do it your way.

    A great starting point for your FuelCell Energy research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.