|Bid||23.30 x 1800|
|Ask||23.64 x 900|
|Day's Range||23.09 - 23.33|
|52 Week Range||22.87 - 31.04|
|Beta (3Y Monthly)||0.78|
|PE Ratio (TTM)||4.02|
|Forward Dividend & Yield||1.03 (4.49%)|
|1y Target Est||N/A|
Even after a correction of 27% from the highs of 2019, Plug Power (NASDAQ:PLUG) stock is higher by almost 100% from December 2018 levels. The rally in the PLUG stock price has been triggered by strong revenue growth, expectation of positive EBITDA in the fourth quarter and an optimistic growth target for the coming years.Source: Shutterstock After a sharp rally, I believe that Plug Power stock is likely to remain sideways or trend lower in the coming quarters. Unless something radical happens, I'll likely remain cautious on shares for these reasons: Client Concentration Is a ConcernIn the material handling and airport equipment segment, Plug Power boasts a long list of blue-chip clients. They include Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN), BMW, General Motors (NYSE:GM), Honda Motor (NYSE:HMC), Toyota (NYSE:TM), Procter & Gamble (NYSE:PG), Carrefour (OTCMKTS:CRRFY), among others.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, for the year ended December 2018, Amazon and Walmart contributed to 66.7% of revenue. * 10 Stocks Under $5 to Buy for Fall While I am not suggesting potential losses of clients, PLUG's business scalability is questionable. That's especially the case for a company that has witnessed meaningful equity dilution.It is worth noting that company's agreement with Walmart commenced in 2014. Furthermore, the multi-year agreement with Amazon was initiated in 2016. During the five-year period from 2014 through 2018, the company's revenue has grown at a CAGR of 22.3% with sustained cash burn. With a small revenue base, growth has been muted.Plug Power does expect to accelerate growth in the coming years. However, with EBITDA just expected to turn positive in 2019, cash burn is likely to sustain. This might imply further equity dilution. Thus, the PLUG stock price can remain sideways to lower even if top-line growth is healthy. Looking Beyond Material Handling EquipmentThe key focus for Plug Power stock has been the material handling equipment. However, the company does not expect the segment to be a growth driver in the coming years.The next three to five years is likely to focus on expansion in the medium- and light-duty vehicles segment. On this front, the ProGen engine can be a game-changing product. Plug Power has already signed a deal with StreetScooter (a subsidiary of DHL) for delivery of ProGen hydrogen fuel-cell engines.The important point to note is that StreetScooter will initially deliver only 100 hydrogen fuel cell-powered trucks for on-road use. Therefore, the contract does not immediately add meaningful revenue.Based on the initial response, the order flow can potentially accelerate. The positive point is that the deal allows Plug Power to make inroads in terms of contact with electric vehicle manufacturers. The global EV market is likely to swell to $912 billion by 2026.Even if Plug Power taps the logistics service market, there will be enough potential to expand.Another potential positive for PLUG stock is expansion in the European markets. The agreement with StreetScooter coupled with an expanded contract with FM Logistic will help the company make its presence felt in a big market.The key question remains business scalability. The current contracts are relatively small in terms of adding to the backlog.As a matter of fact, Plug Power reported an order backlog of $540 million for the year ended December 2018. Importantly, the backlog has an execution period that ranges from 90 days to 10 years. Therefore, revenue visibility needs a boost in the coming years if PLUG stock is to trend higher. Final Words on PLUG StockPlug Power has a strong revenue guidance of $235 million to $245 million for 2019. In addition, the company expects revenue in the "medium-term" to increase to $450 million to $550 million.This growth is only possible if the company's ProGen sales gain traction in the medium and light-duty vehicle segment. The company is also looking at hybrid buses and small to mid-size cars as potential markets. However, it is too early to assume or conclude that these markets will deliver in terms of product acceptability and revenue growth.It therefore makes sense to remain in the sidelines. With a target to accelerate growth, Plug Power will need funding. Further, equity dilution can negatively impact PLUG stock.More importantly, it remains to be seen if the company's products gain wider market acceptance.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post Plug Power Stock Is High on Innovation but Low on Profitability Potential appeared first on InvestorPlace.
The move to stop auto production in Argentina from 2020 by Honda (HMC) is part of its plan of reorganizing automobile production around the globe.
The automotive industry’s eyes are focusing on luxury this week during the annual Pebble Beach Concours d’Elegance and ahead of the official kickoff.
Japan's Honda Motor Co on Tuesday said it will stop producing automobiles in Argentina next year as part of a global shift in how it shares production between regions. Honda said its Campana plant in the province of Buenos Aires, which produces the HR-V model, will focus solely on making on motorcycles. Honda started making motorcycles in Argentina in 2006 and began auto production there in 2011.
Greensboro-based Honda Aircraft Co. continued its two-plus-year dominance of its class as the most-delivered aircraft in the very light jet sector, according to data released by the General Aviation Manufacturers Association.
Honda is boosting its stake in esports and gaming by adding a partnership with Riot Games League of Legends Championship Series.
Amid the ever-expanding Triad footprint of the Honda brand and its family of companies is a little-known subsidiary that designs, tests and develops many of the products the company builds. Honda Research and Develpment has operated in Swepsonville in relative anonymity for 26 years.
Honda Motor Co Ltd's venture with Guangzhou Automobile Group Co Ltd will recall 222,674 Accord sedans in China, market regulators said on Thursday, after recent complaints on social media about the car engine's quality. The recall is linked to a problem caused by the intercooler of the car's 1.5T turbocharged engine. In certain situations, the engine lost speed to protect the vehicle, according to a document on China's State Administration for Market Regulation.
Officials at Honda Power Equipment on Tuesday marked the company’s 35th anniversary by announcing a 135,000-square-foot expansion of its plant in the Alamance County town of Swepsonville.
(Bloomberg) -- Honda Motor Co. is racing toward an electric-powered and self-driving future for cars, but doubling down on gas-burning models for its U.S. lawn mower business.The Japanese company is investing $46.4 million to expand a plant in Swepsonville, North Carolina, where it will begin producing its first new line of mowers in 20 years. Honda is counting on the next-generation HRN line of gasoline-powered mowers -- which boast 18% more torque but no improvement in fuel efficiency -- to turn around its money-losing global power equipment business.“It’s very important to our overall business, not just from a dollars standpoint but a reputation standpoint as well,” Will Walton, vice president of Honda’s U.S. power equipment unit, said in an interview. “We have to make sure that this product is a success in the marketplace.”The HRN family of 170 cubic centimeter engine-powered mowers will replace the current generation 160cc HRR line, he said.Honda’s power equipment business could use a boost. In the most recent fiscal year ended in March, the company said the division lost 10.9 billion yen ($102 million), marking a fifth straight year in the red. North America is by far its largest market, making up 39% of the 351 billion yen in global revenue from Honda brand generators, grass mowers, snow blowers and garden tillers.Honda has sold a battery-powered autonomous lawn mover in the U.S. for the past two years, but the French-made Miimo model hasn’t been a hit with American buyers, even though it can operate quietly day or night. While Miimo “is doing very well in the European market, it’s a little more difficult for U.S. customers to get their minds around,” Walton said.Honda committed in March to electrify 100% of cars sold in Europe by 2025 and last fall invested $2.75 billion in General Motors Co.’s robot-piloted car unit. Last month, the company announced plans for a shared car and SUV platform to help it reach a goal of making two-thirds of sales EVs by 2030. It eventually hopes to share those cutting-edge technologies across its divisions, including more yard care products. “You could see any combination of semi-autonomous and full autonomous in the marketplace,” Walton said.But Honda has no immediate plans to add an electric-powered version of its popular push-mowers anytime soon, Walton said.Honda’s current annual production capacity in North Carolina is 2 million engines and the plant employs 750 full-time workers making lawn mowers, power washers and bush trimmers. The new investment gives it greater flexibility to potentially increase capacity by an unspecified amount, but Honda doesn’t expect to add jobs, said Shane McCoy, a senior vice president at the factory.The 35-year-old plant has helped Honda to adjust production quickly in the highly seasonal market for lawn care products, and the factory accounts for nearly 75% of the company’s sales of power equipment in the U.S. Honda has escaped the brunt of the Trump administration’s tariffs targeting China because the vast majority of the parts assembled in North Carolina are domestically sourced, McCoy said.To contact the reporter on this story: Kyle Lahucik in Southfield at firstname.lastname@example.orgTo contact the editors responsible for this story: Chester Dawson at email@example.com, Craig TrudellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Japan's Honda Motor Co reported a 16% drop in first-quarter operating profit on Friday, as a stronger yen weighed on overseas earnings and U.S. vehicle sales dropped. Japan's No.3 automaker posted operating income of 252.4 billion yen ($2.36 billion) for the April-June period, compared with 299.3 billion yen a year ago and an average forecast of 246.9 billion yen from seven analysts polled by Refinitiv. Honda, however, reiterated its forecast for a 6% increase in operating profit to 770 billion yen for this fiscal year.
Toyota's luxury division and Honda are the latest automakers to announce blacked out editions of their popular SUVs.
The server contained 134 million rows of employee systems data from thecompany's endpoint security service, containing technical details of eachcomputer and device connected to the internal network
Yahoo Finance's Myles Udland and Brian Cheung speak with Dave Magers, CEO of Mecum Auctions, to discuss what will be up on this year's auction block.
Keurig Dr Pepper, Cronos, Apple, Honda and Starbucks are the companies to watch.