Goodwill - Plug Power Inc (NASDAQ:PLUG)

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Price: 2.14 USD -8.55% Market Closed

Market Cap: $3B

Plug Power Inc
Goodwill

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Plug Power Inc
Goodwill Peer Comparison

	Goodwill	CAGR 3Y	CAGR 5Y	CAGR 10Y
Plug Power Inc NASDAQ:PLUG	Goodwill N/A	CAGR 3-Years N/A	CAGR 5-Years N/A	CAGR 10-Years N/A
AMETEK Inc NYSE:AME	Goodwill $7.2B	CAGR 3-Years 11%	CAGR 5-Years 11%	CAGR 10-Years 10%
Emerson Electric Co NYSE:EMR	Goodwill $18.2B	CAGR 3-Years 7%	CAGR 5-Years 22%	CAGR 10-Years 11%
Hubbell Inc NYSE:HUBB	Goodwill $2.6B	CAGR 3-Years 10%	CAGR 5-Years 7%	CAGR 10-Years 11%
Rockwell Automation Inc NYSE:ROK	Goodwill $3.8B	CAGR 3-Years 3%	CAGR 5-Years 18%	CAGR 10-Years 14%
Vertiv Holdings Co NYSE:VRT	Goodwill $1.4B	CAGR 3-Years 5%	CAGR 5-Years 19%	CAGR 10-Years N/A

Plug Power Inc
Glance View

Economic Moat

None

Market Cap

3B USD

Industry

Electrical Equipment

In the heart of the green energy revolution, Plug Power Inc. has carved out a niche as a pioneer and leader in hydrogen fuel cell technology. Founded in 1997, the company initially faced skepticism about hydrogen’s viability but persisted in developing robust solutions that harness the power of this abundantly available element. Plug Power's primary focus is on producing fuel cells that replace conventional batteries in equipment and vehicles powered by electricity. These fuel cells use hydrogen in an electrochemical process to create energy, where hydrogen combines with oxygen to produce electricity, with water as the only byproduct. This innovation is a game-changer in the push towards sustainable industrial applications, offering a cleaner alternative to fossil fuels without sacrificing performance. The company monetizes its expertise by selling a comprehensive array of products, notably its GenDrive hydrogen fuel cell system, which powers equipment like forklifts and airport tugs used by major retailers such as Amazon and Walmart. Beyond product sales, Plug Power has developed a business model that includes generating revenue from hydrogen production and supply, infrastructure deployment, and fuel services. By creating an end-to-end ecosystem for hydrogen deployment, the company ensures a steady income stream through long-term supply and service agreements. This holistic approach not only solidifies its revenue base but positions Plug Power as a critical player in the wider transition toward hydrogen as a mainstream energy source, contributing to its narrative as a transformative force in the ongoing evolution of energy consumption and production.

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Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Plug Power Inc
NASDAQ:PLUG

Plug Power Inc
Goodwill

Plug Power Inc
Goodwill Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Plug Power Inc
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Plug Power Inc NASDAQ:PLUG

Plug Power Inc Goodwill

Plug Power Inc Goodwill Peer Comparison

Competitors Analysis Latest Figures & CAGR of Competitors

Plug Power Inc Glance View

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Plug Power Inc
NASDAQ:PLUG

Plug Power Inc
Goodwill

Plug Power Inc
Goodwill Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Plug Power Inc
Glance View