Plug Power Case Analysis

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Plug Power
Now, it is a high time to consider investing in Plug Power (NASDAQ: PLUG) due to the fact that its fundamentals such as revenue, earnings, margins have grown consistently over the past year. Moreover, the company provided a better outlook for these fundamentals in 2016, supported by more hydrogen infrastructure development, margin improvement initiatives and growing customer base. In addition, the improving fuel cell market conditions across the region make the stock more attractive going forward, enabling the company to attain positive EBITDA sooner-than-expected. In this article, we will check and analyze, if the company can achieve its stated outlook or not? Let us have a look.
After having grown its revenue by a 61% in 2015, the fuel cell system manufacturer expects its revenue to grow more than 50% to $150 million in 2016. Now, this rosy outlook looks more of realistic rather than a mere infer for two reasons. First, the growth of contract booking that grew a whopping 33% to $200 million in 2015, compared with $150 million in 2014. More importantly, the company expects its contract bookings to grow approximately 38% to $275 million in 2016 that should keep its revenue intact in the future.
Second, the contribution of contract backlog to the revenue, which is on an increasing trend. For example, Plug Power anticipates its …show more content…

As a result of these efforts, its GenDrive product gross margin has improved to 25% on a non-gap basis in 2015 from negative 20% couple of years ago. I just took example of GenDrive products gross margin because this segment accounted for nearly 50% of the total revenue in 2015, and improving margin for this category will enable the company to attain positive earnings sooner than

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