FuelCell Energy has been on fire lately. In the past six months alone, the company’s stock price has rocketed 98.6%, reaching $8.62 per share. This run-up might have investors contemplating their next move.
Is now still a good time to buy FCEL? Or is this a case of a company fueled by heightened investor enthusiasm? Find out in our full research report, it’s free.
Why Are We Positive On FCEL?
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
1. Surging Backlog Locks In Future Sales
We can better understand Renewable Energy companies by analyzing their backlog. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into FuelCell Energy’s future revenue streams.
FuelCell Energy’s backlog punched in at $1.19 billion in the latest quarter, and over the last two years, its year-on-year growth averaged 13.3%. This performance was impressive and shows the company has a robust sales pipeline because it is accumulating more orders than it can fulfill. Its growth also suggests that customers are committing to FuelCell Energy for the long term, enhancing the business’s predictability. 
2. EPS Improving
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Although FuelCell Energy’s full-year earnings are still negative, it reduced its losses and improved its EPS by 8.2% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. An inflection point could be coming soon.
3. Increasing Free Cash Flow Margin Juices Financials
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, FuelCell Energy’s margin expanded by 19.4 percentage points over the last five years. FuelCell Energy’s free cash flow margin for the trailing 12 months was negative 91%, and continued increases could help it achieve long-term cash profitability.
Final Judgment
These are just a few reasons why we think FuelCell Energy is a high-quality business, and with the recent surge, the stock trades at $8.62 per share (or a forward price-to-sales ratio of 1.7×). Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
