Plug Power Intrinsic Value Calculation – Leaked Tax Credit Rules Alarm Hydrogen Industry, Impacting Plug Power
December 6, 2023
🌧️Trending News
The Hydrogen industry has been caught off guard by the recently revealed tax credit regulations, as reported by Bloomberg. This has caused alarm within the industry, with many stakeholders concerned about how this will impact their businesses. One company affected by the new regulations is Plug Power ($NASDAQ:PLUG), a leading provider of clean, reliable energy solutions. Plug Power is publicly traded and has established a strong presence in the markets, with operations spanning North America, Europe, and Asia. The company’s innovative product offerings have helped them become a major player in the Hydrogen industry.
However, with the new tax credit regulations, the future of the company may be uncertain. It remains to be seen how the changes will affect Plug Power’s bottom line, but it is clear that the Hydrogen industry is anxious and awaiting further information.
Share Price
On Tuesday, the news that the U.S. Internal Revenue Service (IRS) had finalized rules on eligibility for tax credits for hydrogen fuel cells sent shock waves through the hydrogen industry, with a considerable impact on Plug Power. The stock opened at $4.6 in Tuesday’s trading session before closing at $4.2, a plunge of 11.7% from the last closing price of $4.8. The new rules were seen as a major setback to the industry, as it could make some of the technologies used by Plug Power less viable, thus eroding its competitive edge. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Plug Power. More…
| Total Revenues | Net Income | Net Margin |
| 889.92 | -949.9 | -100.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Plug Power. More…
| Operations | Investing | Financing |
| -1.17k | -198.23 | -21.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Plug Power. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.45k | 1.94k | 5.8 |
Key Ratios Snapshot
Some of the financial key ratios for Plug Power are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 42.5% | – | -102.7% |
| FCF Margin | ROE | ROA |
| -202.7% | -15.8% | -10.5% |
Analysis – Plug Power Intrinsic Value Calculation
At GoodWhale, we have conducted an extensive financial analysis of PLUG POWER. Our proprietary Valuation Line has calculated the intrinsic value of a PLUG POWER share to be around $57.6. Currently, PLUG POWER stocks are being traded at $4.2 – an astonishing 92.7% undervaluation. We believe that this is an excellent opportunity for investors to add PLUG POWER to their portfolios and take advantage of the current market conditions. More…
Peers
Plug Power Inc. is a leading provider of energy solutions that enable its customers to power their operations with clean, reliable energy. The company’s products and services include fuel cells, hydrogen refueling, and power management systems. Plug Power Inc. competes with Loop Energy Inc, AFC Energy PLC, and Greenchek Technology Inc in the provision of energy solutions.
– Loop Energy Inc ($TSX:LPEN)
As of 2022, Loop Energy Inc has a market cap of 60.66M. The company has a Return on Equity of -31.52%. Loop Energy Inc is a company that provides fuel cells and hydrogen fuel cell electric vehicles. The company’s products are used in a variety of applications, including automotive, transportation, stationary power, and portable power.
– AFC Energy PLC ($LSE:AFC)
AFC Energy PLC is a company that focuses on providing alternative energy solutions. The company has a market capitalization of 143.44 million as of 2022 and a return on equity of -24.64%. Despite the negative return on equity, the company’s market capitalization indicates that investors are still confident in the company’s ability to generate future returns. The company’s focus on alternative energy solutions makes it a unique player in the market and gives it a potential growth opportunity in the future.
– Greenchek Technology Inc ($OTCPK:GCHK)
Greenchek Technology Inc is a publicly traded company that engages in the design, manufacture, and sale of electronic test and measurement equipment. The company has a market cap of 35.51k as of 2022 and a return on equity of 2.93%. Greenchek Technology Inc’s products are used in a variety of industries, including telecommunications, aerospace, defense, and semiconductor. The company’s products are sold worldwide through a network of distributors and resellers.
Summary
Plug Power is a leading provider of hydrogen fuel cell solutions to a range of markets, including industrial vehicles, stationary power, and material handling. The stock has seen significant volatility recently, with the price dropping sharply when Bloomberg reported that the US government had proposed rules that would limit tax credits for hydrogen fuel cells. The proposed rules could limit the credits that firms can claim for investments in clean energy technology, such as Plug Power’s products. Analysts remain uncertain about the potential impact on Plug Power’s business and stock price, and suggest investors should watch closely for further developments.
