Hydrogenics (TSX:HYG)(NASDAQ:HYGS) is a Mississauga-based company that designs, develops, and manufactures hydrogen generation products.
Shares of Hydrogenics have surged 137% in 2019 as of close on June 4.
The stock is up 57% from the prior year. Hydrogenics stock hit a 52-week high of $16.75 in trading last week.
The company released its first quarter 2019 results on May 14. Revenue was $8.1 million for the period, which was mostly flat in comparison to Q1 2018.
Hydrogenics secured $26.5 million of orders for renewable energy storage, industrial gas, and power systems in the quarter, and achieved an order backlog of $150 million as at March 31, 2019.
Adjusted EBITDA loss improved to $1 million compared to $1.6 million in the prior year.
The bump in order backlog has investors confident in Hydrogenics’ trajectory going forward. Renewables have become an attractive target for those on the hunt for long-term equities. Unfortunately, Hydrogenics does not offer dividends like some of its top renewable energy peers.
This means its sole value lies in the capital growth it can produce for shareholders.
Of the current backlog of $150 million, Hydrogenics forecasts that it will recognize approximately $56.6 million as revenue over the following 12 months. Hydrogenics stock had an RSI of 71 as of close on June 4. This puts shares in technically oversold territory.
Growth investors may want to await a more favourable entry point as we move into the summer.