Unraveling the Future of Clean Energy Fuels Corp (CLNE): A Deep Dive into Key Metrics
Long-established in the Oil & Gas industry, Clean Energy Fuels Corp (NASDAQ:CLNE) has enjoyed a stellar reputation. It has recently witnessed a surge of 10.34%, juxtaposed with a three-month change of 10.98%. However, fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Clean Energy Fuels Corp.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
1. Financial strength rank: 6/10
2. Profitability rank: 2/10
3. Growth rank: 2/10
4. GF Value rank: 4/10
5. Momentum rank: 7/10
Based on the above method, GuruFocus assigned Clean Energy Fuels Corp the GF Score of 61 out of 100, which signals poor future outperformance potential.
Understanding Clean Energy Fuels Corp's Business
Clean Energy Fuels Corp is a natural gas marketer and retailer operating in the United States and Canada. The company supplies compressed natural gas, liquefied natural gas, and renewable natural gas as an alternative fuel for vehicles. The majority of revenue is generated within the U.S. and mostly consists of compressed natural gas. The company operates by purchasing natural gas from local utilities; compressing, cooling, or liquefying it at company-owned plants; and selling natural gas products through company-owned or customer-owned fueling stations. The company also builds, operates, and maintains natural gas fueling stations for customers. The company's target markets include heavy-duty trucking, airports, public transit, institutional energy users, and government fleets.
Profitability Breakdown
Clean Energy Fuels Corp's low Profitability rank can also raise warning signals. Clean Energy Fuels Corp's Operating Margin has declined over the past five years ((-1,060.61%)), as shown by the following data: 2018: 1.28; 2019: 2.58; 2020: -3.39; 2021: -37.18; 2022: -12.31. Additionally, Clean Energy Fuels Corp's Gross Margin has also declined over the past five years, as evidenced by the data: 2018: 23.57; 2019: 23.93; 2020: 20.10; 2021: -2.01; 2022: 13.74. This trend underscores the company's struggles to convert its revenue into profits.
Growth Prospects
A lack of significant growth is another area where Clean Energy Fuels Corp seems to falter, as evidenced by the company's low Growth rank. Lastly, Clean Energy Fuels Corp predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. It's crucial for investors to consider these factors when making investment decisions. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.
This article first appeared on GuruFocus.
