Clean Energy Fuels currently holds roughly 229.17
M in cash with 41.3
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.03.
The firm shows a Beta (market volatility) of 1.7033, which signifies a somewhat significant risk relative to the market. Let's try to break down what Clean's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Clean Energy will likely underperform. Even though it is essential to pay attention to
Clean Energy Fuels historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Clean Energy Fuels exposes twenty-seven different technical indicators, which can help you to evaluate its performance.
Clean Energy Fuels has an expected return of -0.32%. Please be advised to confirm Clean Energy Fuels
downside deviation,
treynor ratio,
expected short fall, as well as the
relationship between the
jensen alpha and
potential upside to decide if
Clean Energy Fuels performance from the past will be repeated at some point in the near future.
Investing in Clean Energy, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Clean Energy along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Clean Energy's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Clean Energy. Your research has to be compared to or analyzed against Clean Energy's peers to derive any actionable benefits. When done correctly, Clean Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Clean Energy Fuels.
How important is Clean Energy's Liquidity
Clean Energy
financial leverage refers to using borrowed capital as a funding source to finance Clean Energy Fuels ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Clean Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Clean Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Clean Energy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Clean Energy's total debt and its cash.
Clean Energy Gross Profit
Clean Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Clean Energy previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Clean Energy Gross Profit growth over the last 10 years. Please check Clean Energy's
gross profit and other
fundamental indicators for more details.
Clean Energy Correlation with Peers
Investors in Clean can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Clean Energy Fuels. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Clean Energy and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Clean is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Clean for more details
Breaking it down a bit more
Clean Energy Fuels secures Sharpe Ratio (or Efficiency) of -0.0712, which signifies that the company had -0.0712% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Clean Energy Fuels exposes twenty-seven different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Clean Energy Fuels
mean deviation of 3.05, and Risk Adjusted Performance of
(0.09) to double-check the risk estimate we provide.
Are Clean Energy technical indicators showing a relapse?
The variance is down to 20.2 as of today. Clean Energy Fuels exhibits very low volatility with skewness of -0.85 and kurtosis of 3.47. 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.
Our Bottom Line On Clean Energy Fuels
Although many other companies in the oil & gas refining & marketing industry are either recovering or due for a correction, Clean may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 4th of June 2022, we believe that at this point, Clean Energy is
undervalued with
very low odds of financial distress within the next 2 years. However, our concluding buy vs. sell advice on the firm is
Strong Sell.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile 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 Gabriel Shpitalnik do not own shares of Clean Energy Fuels. Please refer to our
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