Breaking Down Clean Energy Fuels Corp. (CLNE) Financial Health: Key Insights for Investors

Are you keeping a close watch on Clean Energy Fuels Corp. (CLNE) and wondering about its financial stability? Let's dive into some key figures from the 2024 fiscal year to give you a clearer picture. The company reported revenue of $415.9 million for 2024, compared to $425.2 million for 2023. While the annual revenue saw a slight dip, the fourth quarter of 2024 showed a revenue of $109.3 million, a bit higher than the $106.9 million in Q4 2023. What about profitability? The net loss attributable to Clean Energy for 2024 was $(83.1) million, or $(0.37) per share, an improvement from the $(99.5) million, or $(0.45) per share, in 2023. How does this all translate into investment decisions? Read on to find out!

Clean Energy Fuels Corp. (CLNE) Revenue Analysis

Clean Energy Fuels Corp. (CLNE) operates in the alternative fuels sector, primarily focusing on providing compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG) for transportation. Understanding the sources and trends in their revenue is crucial for investors.

Here’s a breakdown of Clean Energy Fuels Corp.’s revenue streams:

• Primary Revenue Sources: The company generates revenue primarily through the sale of natural gas as an alternative fuel for vehicles, operating fueling stations, and providing related services and solutions.
• Products and Services: Clean Energy Fuels Corp. offers a range of products and services including:
  • Renewable Natural Gas (RNG): Sourcing and delivering RNG, a sustainable alternative to traditional fossil fuels.
  • Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG): Providing these fuels for various transportation needs.
  • Station Operations: Managing and operating a network of fueling stations.
  • Related Services: Offering maintenance, support, and other services related to natural gas fueling infrastructure.
• Geographic Regions: While Clean Energy Fuels Corp. operates primarily in the United States and Canada, the majority of its revenue is derived from its operations within the U.S.

Analyzing the historical revenue trends provides insights into the company’s performance and growth trajectory. Note that financial data is based on the 2024 fiscal year.

Here’s an overview of Clean Energy Fuels Corp.'s revenue performance:

• Year-over-Year Revenue Growth: Monitoring the year-over-year revenue growth rate helps in assessing the company's ability to expand its market presence and increase sales.
• Historical Trends: Examining past revenue figures and growth rates over several years can reveal patterns and trends in the company's financial performance.
• Percentage Increase/Decrease: Calculating the percentage change in revenue from one year to the next provides a clear indication of the company's growth rate.

A deeper dive into Clean Energy Fuels Corp.’s revenue involves understanding how different business segments contribute to the overall revenue.

The contribution of different business segments to Clean Energy Fuels Corp.’s total revenue may include:

• RNG Sales: Revenue generated from the sale of Redeem RNG.
• CNG and LNG Sales: Income from the sale of compressed and liquefied natural gas.
• Station Services: Revenue from the operation and maintenance of fueling stations.
• Construction Services: Earnings derived from building and upgrading fueling infrastructure.

Significant changes in revenue streams can indicate shifts in the company's business strategy or market conditions.

Analysis of significant changes in revenue streams may include:

• Market Conditions: Changes in the demand for alternative fuels, regulatory policies, and economic factors can impact revenue streams.
• Strategic Initiatives: New projects, partnerships, or investments can lead to changes in revenue sources and growth rates.
• Competitive Landscape: The entry of new competitors or changes in the competitive dynamics of the alternative fuels market can influence revenue performance.

For further insights into the investor profile of Clean Energy Fuels Corp., consider reading Exploring Clean Energy Fuels Corp. (CLNE) Investor Profile: Who’s Buying and Why?

Clean Energy Fuels Corp. (CLNE) Profitability Metrics

Analyzing Clean Energy Fuels Corp.'s profitability involves looking at several key metrics, including gross profit, operating profit, and net profit margins. These figures help investors understand how efficiently the company is managing its costs and generating earnings.

Here's an overview of the profitability metrics for Clean Energy Fuels Corp.:

• Gross Profit: This is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Calculated as gross profit minus operating expenses (such as administrative and sales costs), this metric reflects the profitability of a company's core operations before interest and taxes.
• Net Profit: This is the profit remaining after all expenses, including interest and taxes, have been deducted from revenue. It represents the actual profit available to shareholders.

To provide a clear picture, here's a hypothetical profitability analysis for Clean Energy Fuels Corp. based on 2024 financial data. Note that the numbers presented are examples and may not reflect the company's actual financials.

Trends in Profitability Over Time

Analyzing trends in Clean Energy Fuels Corp.'s profitability over several years can reveal important insights. For example, consistently increasing gross profit margins might indicate improved cost management or higher sales prices. Similarly, rising operating profit margins could suggest better operational efficiency.

• Gross Margin Trends: A rising gross margin indicates that the company is becoming more efficient in managing its production costs.
• Operating Margin Trends: An increasing operating margin suggests that the company is improving its operational efficiency.
• Net Profit Margin Trends: A growing net profit margin shows that the company is effectively managing all expenses, including interest and taxes.

Comparison with Industry Averages

Comparing Clean Energy Fuels Corp.'s profitability ratios with industry averages provides context on how well the company is performing relative to its peers. If the company's margins are higher than the industry average, it may indicate a competitive advantage. Conversely, lower margins might signal areas needing improvement.

Analysis of Operational Efficiency

Operational efficiency is critical for maintaining and improving profitability. Effective cost management and optimized processes can lead to higher margins. Investors should monitor key indicators such as:

• Cost of Goods Sold (COGS): Keeping COGS under control is essential for a healthy gross profit margin.
• Operating Expenses: Efficient management of operating expenses can significantly boost operating profit.
• Gross Margin Trends: Monitoring gross margin trends helps assess the effectiveness of cost management strategies.

For more insights into Clean Energy Fuels Corp., check out: Exploring Clean Energy Fuels Corp. (CLNE) Investor Profile: Who’s Buying and Why?

Clean Energy Fuels Corp. (CLNE) Debt vs. Equity Structure

Understanding how Clean Energy Fuels Corp. (CLNE) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities.

As of the fiscal year 2024, Clean Energy Fuels Corp.'s financial strategy incorporates a mix of debt and equity. To gauge the company's leverage, it's important to consider both its short-term and long-term debt. According to the information available, in Q4 2023, Clean Energy Fuels Corp. announced it was debt-free, which marks a significant shift in its financial structure. This means that the company has strategically managed to eliminate its debt obligations, relying more on equity or operational cash flow for its financial needs.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. However, since Clean Energy Fuels Corp. reported being debt-free in Q4 2023, the traditional debt-to-equity ratio becomes less relevant. Instead, investors might focus on alternative metrics such as cash flow generation, profitability, and reserves to assess financial stability and growth potential.

Recent financial activities, such as debt refinancing or new equity issuances, can significantly impact a company's capital structure. Given that Clean Energy Fuels Corp. has become debt-free, it suggests that the company may have either generated sufficient cash flow to pay off its debts or strategically converted debt into equity. Understanding these recent activities is vital for assessing the company's financial trajectory.

Clean Energy Fuels Corp. balances debt financing and equity funding by strategically managing its capital structure. By achieving a debt-free status, the company demonstrates a preference for funding growth through equity or internal cash generation. This approach can reduce financial risk and enhance financial flexibility, but it may also impact the company's return on equity and overall cost of capital.

Here are key considerations about Clean Energy Fuels Corp.'s debt and equity:

• Debt Levels: Previously carrying significant debt, Clean Energy Fuels Corp. strategically reduced and eliminated its debt by Q4 2023.
• Debt-to-Equity Ratio: The ratio is not applicable as of Q4 2023, due to the company being debt-free.
• Recent Activities: The company has focused on strengthening its balance sheet, which led to the elimination of debt.
• Financing Balance: Clean Energy Fuels Corp. now relies more on equity and internal cash flow to finance its operations and growth.

Understanding Clean Energy Fuels Corp.'s approach to balancing debt and equity is essential for investors looking to assess the company's financial health and long-term sustainability. For more insights into the company's strategic direction, review Mission Statement, Vision, & Core Values of Clean Energy Fuels Corp. (CLNE).

Clean Energy Fuels Corp. (CLNE) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Clean Energy Fuels Corp. (CLNE), assessing these metrics provides insights into its operational efficiency and financial stability.

Assessing Clean Energy Fuels Corp.'s Liquidity:

Analyzing Clean Energy Fuels Corp.'s liquidity involves examining key ratios and working capital trends. These metrics help determine if the company has sufficient liquid assets to cover its immediate liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off short-term liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Monitoring changes in working capital (current assets minus current liabilities) can reveal whether a company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: Examining cash flow statements provides a clear picture of how Clean Energy Fuels Corp. generates and uses cash through its operating, investing, and financing activities.

Cash Flow Trends:

A review of Clean Energy Fuels Corp.'s cash flow statements highlights the trends in its operating, investing, and financing activities. These trends are crucial for understanding the company's overall financial health and sustainability.

• Operating Cash Flow: This indicates the cash generated from the company's core business operations. A positive and growing operating cash flow suggests the company is effectively generating revenue from its primary activities.
• Investing Cash Flow: This reflects the cash used for investments in assets, such as property, plant, and equipment (PP&E). Consistent investments may indicate growth initiatives.
• Financing Cash Flow: This includes activities related to debt, equity, and dividends. Monitoring this can reveal how the company is funding its operations and managing its capital structure.

The following table provides a summarized view of Clean Energy Fuels Corp.'s cash flow activities:

Potential Liquidity Concerns or Strengths:

Based on available data, Clean Energy Fuels Corp. shows potential strengths in managing its cash flow from operations. The company's ability to generate positive cash flow from its core business is a positive sign. However, consistent negative investing cash flow indicates ongoing investments in long-term assets, which need to be balanced with financing activities to maintain overall liquidity. Investors should monitor these trends to ensure the company maintains a healthy liquidity position.

See also: Mission Statement, Vision, & Core Values of Clean Energy Fuels Corp. (CLNE).

Clean Energy Fuels Corp. (CLNE) Valuation Analysis

Assessing whether Clean Energy Fuels Corp. (CLNE) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance analysis, and analyst opinions. Key valuation metrics include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios.

As of April 20, 2025, current financial data for Clean Energy Fuels Corp. (CLNE) from the fiscal year 2024 is essential to provide an accurate valuation assessment. Let's consider these aspects:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company’s stock price to its earnings per share (EPS). A higher P/E ratio might suggest the stock is overvalued, while a lower ratio could indicate undervaluation, relative to its peers or historical averages.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It can indicate whether the stock price is justified by the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure, especially useful for companies with significant debt.

Analyzing Clean Energy Fuels Corp.'s (CLNE) stock price trends over the past 12 months (or longer) offers insights into market sentiment and investor confidence. Significant price increases may suggest overvaluation, especially if not supported by fundamental improvements in the company's financial performance. Conversely, a declining stock price could indicate undervaluation.

Here's a hypothetical overview of Clean Energy Fuels Corp.'s (CLNE) stock performance and valuation metrics based on the kind of data one would look for in an analysis:

It is important to note that as of April 20, 2025, specific dividend yield and payout ratios might not be applicable if Clean Energy Fuels Corp. (CLNE) does not distribute dividends. However, if dividends are paid, these metrics would be crucial in assessing the stock's attractiveness to income-seeking investors.

Analyst consensus plays a significant role in valuation assessment. A consensus rating of 'buy' suggests analysts believe the stock is undervalued, while 'hold' indicates a neutral stance, and 'sell' suggests overvaluation. These ratings are typically based on thorough financial analysis and future growth projections.

For more in-depth information, you can explore: Breaking Down Clean Energy Fuels Corp. (CLNE) Financial Health: Key Insights for Investors

Clean Energy Fuels Corp. (CLNE) Risk Factors

Clean Energy Fuels Corp. (CLNE) faces a variety of risks that could significantly impact its financial health. These risks span from industry-wide challenges to company-specific operational and strategic concerns.

Here's an overview of the key risks:

• Industry Competition: The alternative fuel market is competitive. Clean Energy Fuels Corp. (CLNE) competes with other providers of compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG), as well as traditional gasoline and diesel fuel. Increased competition could lead to lower prices and reduced market share.
• Regulatory Changes: Government regulations and incentives play a crucial role in the adoption of alternative fuels. Changes in these regulations, such as the reduction or elimination of tax credits or subsidies, could negatively affect the demand for Clean Energy Fuels Corp. (CLNE)'s products and services.
• Market Conditions: Fluctuations in natural gas prices can impact the cost-effectiveness of CNG, LNG and RNG compared to gasoline and diesel. Economic downturns can also reduce demand for transportation fuels, affecting Clean Energy Fuels Corp. (CLNE)'s revenue.

Operational, financial, and strategic risks highlighted in recent earnings reports or filings include:

• Operational Risks: Clean Energy Fuels Corp. (CLNE) relies on a network of fueling stations. Disruptions to this network, whether due to equipment failures, supply chain issues, or other factors, could impact the company’s ability to serve its customers.
• Financial Risks: The company's financial performance depends on its ability to secure long-term contracts and maintain favorable pricing agreements. Failure to do so could lead to lower revenues and reduced profitability.
• Strategic Risks: Clean Energy Fuels Corp. (CLNE)’s growth strategy involves expanding its RNG business and developing new technologies. These initiatives are subject to various risks, including technological challenges, regulatory hurdles, and market acceptance.

Mitigation strategies or plans (if available):

While specific details of mitigation strategies may not always be publicly available, companies like Clean Energy Fuels Corp. (CLNE) typically employ several risk management techniques:

• Diversification: Expanding into new markets and diversifying its product offerings can help Clean Energy Fuels Corp. (CLNE) reduce its reliance on any single market or technology.
• Strategic Partnerships: Collaborating with other companies in the alternative fuel industry can help Clean Energy Fuels Corp. (CLNE) share risks and access new technologies and markets.
• Advocacy: Engaging with policymakers to advocate for policies that support the use of alternative fuels can help Clean Energy Fuels Corp. (CLNE) create a more favorable regulatory environment.

Here is a sample risk assessment table:

To gain more insights into Clean Energy Fuels Corp. (CLNE)'s financial health, read: Breaking Down Clean Energy Fuels Corp. (CLNE) Financial Health: Key Insights for Investors

Clean Energy Fuels Corp. (CLNE) Growth Opportunities

Clean Energy Fuels Corp. (CLNE) is strategically positioned to capitalize on several key growth drivers in the evolving landscape of clean energy. These drivers include product innovations, market expansions, strategic acquisitions, and partnerships, which collectively enhance the company's prospects for future revenue growth and improved earnings.

Key growth drivers for Clean Energy Fuels Corp. (CLNE) include:

• Product Innovations: Clean Energy Fuels Corp. (CLNE) consistently invests in innovative technologies to expand its offerings of renewable natural gas (RNG) and other sustainable fuel solutions.
• Market Expansions: Clean Energy Fuels Corp. (CLNE) is actively expanding its presence in key markets, including transportation and industrial sectors, where the demand for cleaner fuel alternatives is increasing.
• Strategic Initiatives and Partnerships: Clean Energy Fuels Corp. (CLNE) leverages strategic initiatives and partnerships to enhance its market position and drive future growth.

Future revenue growth projections and earnings estimates for Clean Energy Fuels Corp. (CLNE) are influenced by several factors, including increasing demand for RNG, expansion of its fueling infrastructure, and favorable regulatory developments. Analysts' estimates provide insights into the company's potential financial performance:

Clean Energy Fuels Corp. (CLNE) possesses several competitive advantages that position it favorably for growth:

• Extensive Infrastructure Network: Clean Energy Fuels Corp. (CLNE) operates a vast network of fueling stations, providing a significant competitive edge in distributing clean fuels across key markets.
• Technological Leadership: Clean Energy Fuels Corp. (CLNE)'s focus on innovation and technological advancements in RNG production and distribution enhances its ability to meet evolving customer needs and regulatory requirements.
• Strong Customer Relationships: Clean Energy Fuels Corp. (CLNE) has cultivated strong relationships with key customers in the transportation and industrial sectors, providing a stable base for future growth and expansion.

For additional insights into Clean Energy Fuels Corp. (CLNE) and its investor profile, consider reading Exploring Clean Energy Fuels Corp. (CLNE) Investor Profile: Who’s Buying and Why?