Clean Stock Story

CLNE
 Stock
  

USD 7.69  0.30  3.75%   

As many of us are excited about energy space, it is fair to digest Clean Energy Fuels. We are going to cover the possibilities of making Clean Energy into your portfolio. Is the firm operations in 2022 sustainable? Here we are going to cover Clean Energy Fuels perspective on valuation to give you a better outlook on taking a position in this stock.
Published over two months ago
View all stories for Clean Energy | View All Stories

Our prognosis on Clean Energy (NASDAQ:CLNE) to bounce back in June

The company currently holds 82.31 M in liabilities with Debt to Equity (D/E) ratio of 0.11, which may suggest Clean Energy is not taking enough advantage from borrowing. Clean Energy Fuels has a current ratio of 3.19, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Clean Energy until it has trouble settling it off, either with new capital or with free cash flow. So, Clean Energy's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Clean Energy Fuels sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Clean to invest in growth at high rates of return. When we think about Clean Energy's use of debt, we should always consider it together with cash and equity.
We provide trade advice to complement the prevailing expert consensus on Clean Energy Fuels. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Clean Energy Fuels using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Clean Energy Fuels based exclusively on its fundamental and basic technical indicators. By analyzing Clean Energy's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Clean Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Clean Energy. We calculate exposure to Clean Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Clean Energy's related companies.

Clean Energy Fuels Investment Alerts

Clean investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Clean Energy Fuels performance across your portfolios.Please check all investment alerts for Clean

Clean Energy Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Clean value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Clean Energy competition to find correlations between indicators driving the intrinsic value of Clean.

How does Clean utilize its cash?

To perform a cash flow analysis of Clean Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Clean Energy is receiving and how much cash it distributes out in a given period. The Clean Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Clean Energy Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 41.3 Million

Breaking it down a bit more

The entity reported the previous year's revenue of 255.65 M. Net Loss for the year was (93.15 M) with profit before overhead, payroll, taxes, and interest of 40.04 M.
 2019 2020 2021 2022 (projected)
Interest Expense7.57 M7.35 M4.43 M4.55 M
Gross Profit131.96 M106.31 M40.04 M41.1 M

Margins Breakdown

Clean profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Clean Energy itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Clean Energy profit margins.
Operating Margin(3.29)
EBITDA Margin(0.16)
Gross Margin0.16
Profit Margin(0.39)


Clean Energy Revenue Per Employee is increasing over the last 8 years. The previous year's value of Clean Energy Revenue Per Employee was 510,474. Also, Clean Energy Net Income Per Employee is increasing over the last 8 years.

Clean Energy latest dip is reassuring

Standard deviation is down to 4.54. It may indicate a possible volatility dip. Clean Energy Fuels exhibits very low volatility with skewness of -0.94 and kurtosis of 3.42. However, we advise investors to further study Clean Energy Fuels technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Clean Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Clean Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Clean Energy Implied Volatility

Clean Energy's implied volatility exposes the market's sentiment of Clean Energy Fuels stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Clean Energy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Clean Energy stock will not fluctuate a lot when Clean Energy's options are near their expiration.

The Current Takeaway on Clean Energy Investment

Although other entities in the oil & gas refining & marketing industry are either recovering or due for a correction, Clean Energy may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 28th of May 2022, we believe that Clean Energy is currently undervalued with low probability of distress in the next two years. However, our overall 90 days buy-or-sell advice on the firm is Sell.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Clean Energy Fuels. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com