Nikola(US:NKLA) The Motley Foolยท2024-11-12 10:50Industry Overview - Hydrogen power is considered a green alternative to fossil fuels, produced using renewable energy sources like wind or solar [2] - The hydrogen fuel cell market is projected to grow at a CAGR of 30% from 2024 to 2032, while the hydrogen vehicle market is expected to expand at a CAGR of 45% from 2025 to 2037 [4] Plug Power - Plug Power specializes in hydrogen fuel cells and charging services for forklifts, with over 69,000 fuel cell systems and 250 fueling stations deployed [6] - Revenue increased by 40% in 2022 and 27% in 2023, driven by acquisitions that expanded its cryogenic equipment unit [7] - Analysts forecast a revenue growth of 25% CAGR from 2023 to 2026, alongside a narrowing of net losses [8] - The company received a $1.66 billion loan from the U.S. Department of Energy to develop new green hydrogen production facilities [8] - With an enterprise value of $2.67 billion, Plug Power's stock is considered undervalued at 2.3 times next year's sales [9] - Insiders have purchased nearly five times as many shares as they sold in the past year, indicating confidence in the company's future [9] Nikola - Nikola produces electric semi-trucks and has recently started delivering hydrogen fuel-cell electric trucks (FCEVs) [10] - The company faced challenges, including missed delivery targets and legal issues, but has delivered 203 FCEVs in the first nine months of 2024 [11] - Revenue is expected to triple to $112 million in 2024 and nearly triple again to $328 million in 2025 as FCEV shipments ramp up [11] - Nikola plans to establish a network of 60 hydrogen charging stations across the U.S. by 2026 [11] - With an enterprise value of $338 million, Nikola's stock is viewed as inexpensive at roughly 1 time next year's sales [12] - Insiders have bought 15 times as many shares as they sold in the past year, suggesting potential for growth in the hydrogen vehicle market [12]