Plug Power (NASDAQ: $PLUG) Is Empowering Electrical Mobility

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Plug Power (NASDAQ: $PLUG) leads the way in electrical mobility among residential and commercial users through strong acquisitions and stays ambitious about its future.

Plug Power Inc (NASDAQ: $PLUG) focuses on hydrogen fuel cell solutions for the electric mobility and stationary power markets in North America and Europe. They provide systems for commercial and residential users globally. It was founded in 1997 in Latham, NY, and went public in 2005. They have 9 subsidiaries worldwide.

The company has e-mobility products such as ground support equipment (GSE) used in port fleets, robots for industries, unmanned aerial vehicles, and fleet vehicles.

Their stationery products work with data centers, railroad crossing communications, and their material handling systems work with forklifts. $PLUG’s technology is widely used at Walmart and Amazon for their forklifts.

The company is also investing to expand the filling station market and has established 100 hydrogen fuelling stations that are currently fully operational.

Plug Power’s earnings per share (EPS) is -$.29 for the trailing twelve months.

During that period revenue rose 35.35% and EPS grew at 21.62%.

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Plug Power has built strong relationships and made key acquisitions


The second quarter broke records despite the pandemic. They billed $73 million in billing resulting in $1 million EBITDA. The third quarter will be 40% higher. The CEO projects $9 to $10 million in EBITDA from $110 to $115 million in billing for Q3 with an aim to achieve $310 million in gross billings.

Two acquisitions occurred in Q2:

    • One with United Hydrogen – enabling them to produce large scale hydrogen plants.
    • The second with Giner ELX – obtaining the IP for the well known Proton Exchange Membrane (PEM) electrolyzer technology.

Combining these two companies will help $PLUG produce 40 tons of green hydrogen a day by 2024. They also hold the key to an effective EU distribution.

Plug Power is thereby well positioned to distribute electrolyzers in the EU and North Africa by 2030.

The sitting CEO of Plug Power, Andrew Marsh, is with his prior experience of founding and leading another power company (Valere Power, sold off to Norwegian Eltek), well suited to build and bridge new relationships.

He has so far successfully built relationships with Walmart, Amazon, Home Depot, BMW, and many more.

It is such relationships that will lead $PLUG towards achieving its goal of $1 billion in revenue and at least $250 million in EBITDA by 2024.

$PLUG reported a positive Q2 despite the pandemic. The stock closed at $23.43 on 13th November 2020 near its 52-week high of $24.78. The stock has seen tremendous up-movement in 2020 far away from its 52-week low at $2.53.


Plug Power (NASDAQ: $PLUG) has built strong relationships and made key acquisitions to build on their success and their business model of having a continued service revenue puts them in a strong position.

Buy and forget – or hope for a dip to get in, when investors lock in some profits, and the ‘green industry’ cools a bit down. We sense a lot of hype and would like to see the companies deliver.

 

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