Why Are Clean Energy Stocks Fuel Tech, Ocean Power & Ballard Power Trending?

 

Clean energy stocks such as Fuel Tech (NASDAQ: FTEK, FTEK: US), Ocean Power Technologies (NASDAQ: OPTT, OPTT:US), and Ballard Power Systems Inc. (TSX: BLDP) are trending in Canadian markets after the US president-elect Joe Biden named erstwhile US Secretary of State John Kerry as his climate envoy. With Biden keen to abide by the Paris Agreement, which Kerry negotiating during his tenure, the current momentum in clean energy rally is likely to continue.

The Trudeau government has already announced plans to reduce its economic dependence on non-renewable fuel sources, allocating billions towards the clean energy initiative. Under these circumstances, renewable energy stocks are bouncing back from the coronavirus pandemic-caused morass.

Let us have a closer look at the stock performance of Fuel Tech, Ocean Power Technologies, and Ballard Power Systems.

 

Fuel Tech (NASDAQ: FTEK)

Current Stock Price: US$ 6.04

 

Fuel Tech provides technology for air pollution control, boiler optimization and efficiency improvement to utility and industrial clients. The company manages two business segments, Air Pollution Control (APC) and FUEL CHEM, which uses chemical processes to offer targeted In-Furnace Injection.

 

Fuel Tech Stock Performance

 

This clean fuel tech tock has rocketed by 635 per cent in the last three months. The stock has zoomed 1429 per cent since the pandemic-led crash on March 26. The company scrips indicate a nearly 583 per cent surge year-to-date (YTD).

Fuel Tech’s 10-day average stock trading volume has surged to 36.35 million units. Its 30-day average trading volume is 12.18 million units.

Its current price-to-book ratio is 6.292, and the price-to-cashflow ratio is 3.70. The stock holds a current debt to equity ratio of 0.08, as per data on the TMX portal.

Its current market capitalization is US$ 149 million.

 

Fuel Tech Financial Highlights

 

The company registered consolidated revenues of US$ 8.2 million in the third quarter of 2020, an increase of 26.4 per cent from US$ 6.5 million in Q3 2019, led by higher revenue in both the APC and FUEL CHEM businesses.

The tech company reported an adjusted EBITDA of US$ 2.7 million in Q3 2020, compared to an adjusted EBITDA loss of US$ (0.8) million in the same period prior year.

It generated total cash of US$ 11.8 million as of September 30, 2020 (including restricted cash of US$ 2.4 million), down from total cash of $13.5 million (including restricted cash of US$2.6 million) as of December 31, 2019. Unitholders’ equity stood at US$ 23.8 million, or US$ 0.96 per share.

 

Ocean Power Technologies Inc (NASDAQ: OPTT)

Current Stock Price: US$ 2.98

 

Ocean Power Technologies provides wave-based energy technology, which operates in creating systems that produce electricity by utilizing the clean energy of ocean waves. It generates the most of its revenue from North America and has operations in Europe, Asia, and Australia.

 

Ocean Power Stock Performance

The ocean-waves tech stock show a nearly 243 per cent rise YTD and soared over 148 per cent in the last three months. The scrips have surged 776 per cent since the pandemic-caused meltdown on March 19. Its current market capitalization is US$ 84 million.

Renewable energy tech company’s 10-day average stock trading volume has rushed to almost 13 million units. Its 30-day average stock trading volume is 7.87 million units.

Its current price-to-book ratio is 7.095, and the current debt to equity ratio is 0.21, as per data available on the TMX portal.

 

Ocean Power Financial Highlights

The company reported a revenue of US$ 0.2 million in the first quarter of fiscal 2021, which remained flat compared to Q1 FY20.

The company’s net expenses in operating activities declined by US$ 0.9 million during Q1 FY21 to US$ 2.7 million, as compared to Q1 FY20.

 

Ballard Power Systems Inc. (TSX: BLDP)

Current Stock Price: C$ 26.01

 

Canada-based Ballard Power Systems offers green energy growth and operates in proton exchange membrane fuel cell manufacturing and commercialization.

 

Ballard Power Stock Performance

The clean-power company made it to TSX30 stocklist in 2020. It is among the top price performer stocks that have the highest price gain across the TSX and TSXV in the last 30 days. The renewable power company has also been placed among TMX’s top industrial stocks that have outperformed their peers with the largest price gain in the last 30 days.

In the last three months, the green power stock has surged over 25 per cent. The stock has regained over 147 per cent since the coronavirus pandemic-caused market crash in March. The company scrips are up nearly 186 per cent year-to-date. Its current market cap stands at C$ 6.73 billion.

Ballard’s current price-to-book ratio is 10.446, and the current price-to-cashflow ratio is 139.90. Its debt to equity ratio is 0.04, as per data on TMX.

 

Ballard Power Financial Highlights

Ballard reported total revenue of US$ 25.6 million in the third quarter of 2020, a rise of 4 per cent year-over-year, led by the result of higher supplies of heavy-duty and backup power products. The power products earned revenue of US$ 15.3 million in Q3 2020, a 94 per cent surge YoY.

The company held cash reserves of US$ 361.7 million as of September 30, 2020, a rise of 136 per cent from Q3 2019.