Plug Power Inc (NASDAQ: PLUG) is focused on building a complete green hydrogen ecosystem. The company is working to create a sustainable market for hydrogen fuel cell technology that spans production, storage, and delivery to energy generation.
Plug has already deployed more than 60,000 fuel cell systems and over 200 fueling stations, making it the largest buyer of liquid hydrogen and the leader in the industry. The company plans to expand its operations by building a green hydrogen highway across North America and Europe.
To support this expansion, Plug is building a state-of-the-art Gigafactory to produce electrolyzers and fuel cells, along with multiple green hydrogen production plants. These facilities are expected to yield 500 tons of liquid green hydrogen daily by 2025.
PLUG Stock Overview
As of 27 Apr 2023, the company's stock is trading at $8.47, and year-to-date (YTD), it is down by -30%. Over the past year, the stock is down by -62%, whilst the S&P 500 is down by -3%, meaning the stock has performed worse than the broader market by approximately -59% over this period. PLUG has a $5bn market cap.
Plug Power Stock Analysis
Let’s analyze whether Plug Power stock has potential or if it’s one to avoid. EPS is the first metric we'll look at, and this is used by investors to gauge the profitability of a company on a 'per share' basis. Based on its last reported balance sheet, Plug Power Inc's EPS is -1.25 for fiscal year 2022. As it's not yet a profitable company, its EPS is negative.
The company is on a mission to reach profitability, but that goal is still a while off.
Plug Power prioritizes large-scale manufacturing to accelerate business growth and drive profitability. Despite some doubters, the company is confident that its 4,000 global employees and partnerships can achieve their ambitious goals.
It also believes the favorable business environment for sustainable solutions will benefit all PLUG stakeholders. By the end of 2023, Plug aims to generate $1.4 billion in revenue, commission a 200-ton liquid green hydrogen plant, become the largest global player, exceed $400 million in electrolyzer sales, and deploy 30 megawatts of stationary power products. These products will serve as a substantial source of recurring revenue for the company and clearly demonstrate the path to profitability for all investors.
Next, let's look at one of the most common valuation metrics - the P/S ratio. Plug Power Inc's P/S ratio is currently 7. Compared to the sector-wide benchmark of 1.6, this is 340% higher, indicating that the stock may offer less value compared to other companies in the same sector.
Another key metric to look at is a company's price-to-book value (P/BV), which tells us how much investors are willing to pay for a company's assets.
Based on its most recent financials, Plug Power Inc's P/BV is 1.2, and this is 50% lower than the average across the industry, which is 2.4.
A LiDAR Vision
Meanwhile, an alternative company operating in the EV space is Innoviz Technologies Ltd. Innoviz is an Israeli company that specializes in LiDAR technology and is a leader in the global market. The company is working towards a future where autonomous vehicles will be safe to use on roads worldwide.
Innoviz's LiDAR sensors and perception software are designed to have better "vision" than a human driver, reducing the likelihood of mistakes and meeting the automotive industry's strict performance and safety standards.
Innoviz operates in several regions across the world, including the U.S., Europe, and Asia. The company has been selected by internationally recognized premium car brands for use in consumer vehicles, as well as by other commercial and industrial leaders for a wide range of use cases.
The company offers a range of LiDAR sensors, including InnovizOne, an automotive-grade, mass-producible LiDAR sensor, and InnovizTwo, a next-generation high-performance automotive-grade LiDAR sensor.
In addition to these hardware offerings, Innoviz also provides perception software that features advanced AI and machine learning-based classification, detection, and tracking capabilities.
Innoviz Technologies has secured investments from several top-tier strategic partners and investors, including SoftBank Ventures Asia, Samsung, Magna International, Aptiv, and more.
Today INVZ stock is trading on Nasdaq at $2.58. It is down -33% YTD and -23% in the past year. INVZ has a $347m market cap.
Innoviz at ITS America
Innoviz is demonstrating its advanced LiDAR technology at ITS America, an event that brings together innovators from the intelligent transportation community to showcase their latest mobility innovations and use-case solutions. Here it is highlighting some of its latest mobility innovations and use-case solutions, such as bridge collision detection, hazard detection, trespassing detection, and additional traffic alerts. The company is pleased to see its partners presenting at ITS, including Outsight, Sensagrate, Gridmatrix, and Axilion.
Scott Craig, Vice President of North America at Innoviz Technologies, stated,
Innoviz LiDAR sensors and perception software offer urban and rural transportation solutions for a number of applications, ranging from autonomous vehicles to traffic and security monitoring, and helping to unlock the future of mobility today.
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