FuelCell Energy (FCEL) has set a clear catalyst for investors, with third quarter 2026 results scheduled for release before the market opens on Wednesday, September 2, followed by a management conference call.

FuelCell Energy’s recent share price has cooled, with a 1-day share price return of 1.14% down and a 30-day share price return of 11.26% down, yet the year-to-date share price return of 133.41% and a 1-year total shareholder return of very large magnitude show that longer-term momentum has been strong, even after a 3-year total shareholder return of 55.23% down and a 5-year total shareholder return of 90.02% down.

Compare FuelCell Energy’s setup with a curated group of power and infrastructure peers by scanning the 38 power grid technology and infrastructure stocks that are already aligned with grid support, distributed generation, and energy transition themes.

FuelCell Energy’s business sits squarely in long term grid support and hydrogen themes, yet the stock has swung sharply over different timeframes. The next step is to test whether today’s price fairly reflects that profile.

Most Popular Narrative: 13.3% Undervalued

FuelCell Energy’s most followed narrative pegs fair value at $22, a little above the last close at $19.07, which puts a spotlight on the growth assumptions behind that gap.

The partnership with Diversified Energy to deliver up to 360 megawatts to data centers in Virginia, West Virginia, and Kentucky is anticipated to drive significant revenue growth as it positions FuelCell Energy at the forefront of powering AI and high-performance computing sectors.

The joint development agreement with Malaysia Marine and Heavy Engineering to co-develop large-scale hydrogen production systems is expected to enhance revenue by expanding FuelCell Energy's market presence in Asia, New Zealand, and Australia, tapping into growing demand for hydrogen.

Want to see how this data center and hydrogen push ties into that higher fair value? Revenue trajectories, margin shifts, and a richer future earnings multiple sit at the core of this narrative. The numbers behind those moving parts are what bridge $19.07 and $22.

Result: Fair Value of $22 (UNDERVALUED)

However, FuelCell Energy’s ongoing losses and reliance on large, still developing data center and hydrogen projects mean execution setbacks could quickly challenge this 13.3% undervalued story.

Another View on FuelCell Energy’s Valuation

The fair value narrative for FuelCell Energy at $22 assumes the market eventually rewards higher revenue and margin potential. However, today the stock trades on a P/S ratio of 9.1x, while the US Electrical industry sits at 2.7x and the fair ratio is 2.2x. That is a wide gap for an unprofitable company, so the question is whether future growth is strong enough to keep investors comfortable with that premium.

For investors weighing this richer P/S against the growth story, it can help to see how the numbers compare in more detail in our valuation workup. See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With FuelCell Energy trading on a premium P/S and investor sentiment split between risks and rewards, it makes sense to review the data and decide quickly what it means for your own portfolio using the 1 key reward and 3 important warning signs.

Looking for more investment ideas beyond FuelCell Energy?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.