Three Important Numbers That Plug Power Investors Will Need to Know

$200 million of bookings, 0.5% market share (with strong potential), and 12 seconds of every Plug Power unit refilling.

There is little doubt amongst many that hydrogen fuel cell will become the thing of the future, and that is what Plug Power (NASDAQ:PLUG) also thinks so too. It will be regarded as the most popular fuel for a wide variety of applications but the investors have been a bit fuzzy when it comes to investors’ emotions in watching the company not meeting its potential, desires to make a quick bang for the buck for investors, and caught between their short-term goals and long-term priorities.

Recently the company has given a series of hints as to what priorities do they have in their plans to achieve in the coming months and years ahead, and using three magic numbers to achieve those essential goals.

The company is primarily planning to rope in at least more than $200 million in bookings. CEO Andy Marsh believes that goal is achievable before the ending of the current year. It sounds ambitious, but the company thrives on the said ‘ambitiousness’, and is able to meet the revenue goal in the process. The objective will be achieved through a combination of repeat business with customers from established businesses, such as BMW, Walmart, etc. This will help to pull in three quarters of the revenue, whilst at the same time providing speculations to go for new customers, who will likely take time to decide on doing business with Plug Power.

The second number to focus on is improving its market share, which is currently at a minuscule 0.5%, suggesting that there is a lot of room and potential to grow. Currently, Plug Power has a huge lead in the hydrogen powered forklift market, having sold out 7500 units of its GenDrive units, but even with substantial penetration in the market, there are still at least 1.5 million units in the market up for grabs.

Another number to look out for is ‘refilling’ duration in fuel cells. A part of Plug Power’s overall package is the need to incorporate fueling infrastructure into its hydrogen offerings, assuming that refueling will climb drastically in the coming years, the company has decided to tackle this issue head-on by building a network of fueling stations, which it is already involved in 2500 refueling per day. The current fueling is once every 12 seconds, which it wants to boost to every 5-6 seconds. The company estimates a rise in demand in the industry due to gain in its products’ popularity.

Plug Power’s stock price ended the day flat at $2.74.

 

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