Westport Fuel Systems Inc Common Shares (WPRT)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I start with business quality. Westport sells alternative-fuel systems and components—natural gas, renewable natural gas, hydrogen—for transportation. That is a niche with engineering content, but the numbers do not show a durable moat. Revenue growth is -68.80%, profit growth is -132.84%, and in the latest reported quarter, fiscal Q2 2026, revenue was only $2.7 million against a net loss of $11.4 million, a -418.66% margin. A business losing more than four dollars for every dollar of sales is not earning a franchise. Financial health is poor: trailing free cash flow is -$9.7 million, a -25.8% FCF yield on a $37.6 million market cap. FairStock calculations show ROE -45.05%, ROCE -7.08%, Piotroski 3/9, and Altman Z -18.79. The one balance-sheet positive is low leverage, with D/E 0.05. At the 2026-10-13 close of $1.78, FairStock calculations put P/B at 0.45 and P/E at -0.86, but negative earnings make the P/E meaningless; below-book value can be a trap if losses consume the assets. EPS is -$2.08. The stock is near the bottom of its 52-week range of $1.54-$2.55, beta 2.21, FairStock score 40/100. There is no Lynch category because only 0 years of filed results exist versus the 3 needed. Growth trajectory is negative. I would need evidence of revenue stabilization, positive cash generation, and a margin of safety before treating this as an investment rather than a speculation.

In plain English: Westport Fuel Systems makes alternative-fuel parts and systems for vehicles, including natural gas, renewable natural gas, and hydrogen equipment. The business looks weak: sales have fallen sharply, it is losing money, and cash flow is negative. The share price looks low compared with the company's accounting assets, but that cheapness comes with serious doubts about whether the business can stop shrinking and become profitable.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer