Generally speaking long term investing is the way to go. But unfortunately, some companies simply don't succeed. For example, after five long years the Clean Energy Fuels Corp. (NASDAQ:CLNE) share price is a whole 65% lower. That is extremely sub-optimal, to say the least. There was little comfort for shareholders in the last week as the price declined a further 2.2%.
Because Clean Energy Fuels is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over half a decade Clean Energy Fuels reduced its trailing twelve month revenue by 4.4% for each year. While far from catastrophic that is not good. With neither profit nor revenue growth, the loss of 19% per year doesn't really surprise us. We don't think anyone is rushing to buy this stock. Ultimately, it may be worth watching - should revenue pick up, the share price might follow.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling Clean Energy Fuels stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Investors in Clean Energy Fuels had a tough year, with a total loss of 7.4%, against a market gain of about 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 19% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.