Fact based stock research
Ballard Power Systems (TSX:BLDP)

CA0585861085

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Ballard Power Systems stock research in summary

ballard.comabout-ballardballard-in-canada

ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Ballard Power Systems (Electr. Components & Equipment, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Ballard Power Systems are low in value (priced high) with a consolidated Value Rank of 21 (worse than 79% of alternatives) and show below-average growth (Growth Rank of 35) but are safely financed (Safety Rank of 77), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Ballard Power Systems's financial characteristics. As the company Ballard Power Systems's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 21) and low growth (Obermatt Growth Rank of 35), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 77) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	21
Growth Rank	35
Safety Rank	77
Combined Rank	49

Country	Canada
Industry	Electr. Components & Equipment
Index	Electromobility, Hydrogen, SDG 12, SDG 13, SDG 7, SDG 9, NASDAQ, TSX Composite
Size class	Small

This stock has achievements: Top 10 Stock.

28-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Ballard Power Systems

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	9	23	21	21
GROWTH
GROWTH	9	39	59	35
SAFETY
SAFETY	20	77	80	77
SENTIMENT
SENTIMENT	n/a	59	39	^new
360° VIEW
360° VIEW	n/a	39	35	^new

Most recent update of the stock research: 28-Nov-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Ballard Power Systems is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	9	23	21	21
GROWTH
GROWTH	9	39	59	35
SAFETY
SAFETY	20	77	80	77
COMBINED
COMBINED	2	43	42	49

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of Ballard Power Systems the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 21 (worse than 79% compared with alternatives), Ballard Power Systems shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Ballard Power Systems. Price-to-Profit (also referred to as price-earnings, P/E) is 76 which means that the stock price compared with what market professionals expect for future profits is lower than for 76% of comparable companies, indicating a good value concerning Ballard Power Systems's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 84, which means that the stock price is lower as regards to invested capital than for 84% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 83% of alternatives (only 17% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 21, is a sell recommendation based on Ballard Power Systems's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	4	3	8	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	8	n/a	76	76
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	63	66	75	84
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	9	23	21	21

Last update of Value Rank: 28-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Ballard Power Systems; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), Ballard Power Systems shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Ballard Power Systems. Sales Growth has a rank of 78 which means that currently, professionals expect the company to grow more than 78% of its competitors. Capital Growth is also above 10% of competitors with a rank of 74. But Profit Growth only has a rank of 10, which means that currently professionals expect the company to grow its profits less than 90% of its competitors. And Stock Returns have also been below average with a rank of only 11. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	9	70	88	78
PROFIT GROWTH
PROFIT GROWTH	25	6	59	10
CAPITAL GROWTH
CAPITAL GROWTH	n/a	89	39	74
STOCK RETURNS
STOCK RETURNS	27	7	27	11
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	9	39	59	35

Last update of Growth Rank: 28-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Ballard Power Systems.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 77 (better than 77% compared with alternatives) for 2024, the company Ballard Power Systems has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Ballard Power Systems is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Ballard Power Systems.Leverage is at 78, meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors.Refinancing is at a rank of 97, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 97% of its competitors. Liquidity is at 23, meaning that the company generates less profit to service its debt than 77% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 77 (better than 77% compared with alternatives), Ballard Power Systems has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Ballard Power Systems more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	98	80	82	78
REFINANCING
REFINANCING	6	77	93	97
LIQUIDITY
LIQUIDITY	2	11	9	23
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	20	77	80	77

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Ballard Power Systems and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	32	5	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	69	39	^new
MARKET PULSE
MARKET PULSE	n/a	48	54	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	59	39	^new

Last update of Sentiment Rank: 28-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Ballard Power Systems.
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