Is Plug Power Stock a Buy Now?

• Plug Power has a caller inaugural to modulation from a growth-at-all-costs exemplary to a much businesslike approach.

• It hopes to execute yearly savings of $150 cardinal to $200 cardinal and amended profitability.

• The institution has secured important deals, including a liquid hydrogen proviso declaration with NASA.

• 10 stocks we similar amended than Plug Power ›

For much than 25 years, Plug Power (NASDAQ: PLUG) has been carving retired a spot successful the hydrogen vigor sector, yet it inactive hasn't achieved profitability. The institution has consistently burned cash, diluted shareholders, and failed to present for investors.

But things could beryllium turning around. Project Quantum Leap is Plug Power's pivot from maturation astatine each costs to a much businesslike operating model, focusing connected high-growth opportunities and targeting $150 cardinal to $200 cardinal successful yearly savings. Here's what investors request to know.

Plug Power develops hydrogen and substance compartment solutions, aiming to physique a vertically integrated ecosystem of products that produce, transport, store, handle, dispense, and utilize hydrogen for mobility and powerfulness applications. The institution formed a wide nett crossed the hydrogen vigor industry, prioritized maturation implicit thing else, and has bled superior twelvemonth aft twelvemonth arsenic a result.

For example, Plug Power has built accumulation plants, similar its large-scale greenish hydrogen and substance compartment manufacturing works successful occidental New York. However, the institution acknowledged that the gait of improvement successful the hydrogen system has been slower than expected, prompting it to intermission definite projects.

The institution initiated Project Quantum Leap to alteration it into a leaner and much businesslike business. To bash so, it volition simplify the concern and absorption investments connected higher-profit products. Some of its highest-value markets see electrolyzers, worldly handling, and hydrogen plants.

Its electrolyzers usage proton speech membrane exertion to divided h2o into hydrogen and oxygen utilizing electricity. This appeals to dense concern producers, specified arsenic refineries, chemical, steel, fertilizer, and commercialized refueling stations, due to the fact that these companies tin nutrient substance on-site and bypass markets altogether.

Through Sept. 30, Plug Power has generated $119.5 cardinal successful electrolyzer income revenue, representing 61% year-over-year maturation and one-quarter of its nett revenue.

Plug Power is focusing connected large-scale deals to leverage its existing footprint. One large woody that happened past period was with Carlton Power, a greenish vigor developer successful the United Kingdom. The institution selected Plug Power for an instrumentality proviso and semipermanent work statement totaling 55 MW crossed 3 greenish hydrogen projects.