Clean Energy Fuels Corp. (CLNE) Bundle
Understanding Clean Energy Fuels Corp. (CLNE) Revenue Streams
Understanding Clean Energy Fuels Corp.’s Revenue Streams
Clean Energy Fuels Corp. generates revenue primarily through two segments: product revenue and service revenue. The following table provides a detailed breakdown of these revenue sources for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Revenue Source | Three Months Ended September 30, 2023 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Product Revenue | $81,279,000 | $89,900,000 | $276,635,000 | $262,274,000 |
| Service Revenue | $14,292,000 | $14,976,000 | $41,667,000 | $44,265,000 |
| Total Revenue | $95,571,000 | $104,876,000 | $318,302,000 | $306,539,000 |
The product revenue for the three months ended September 30, 2024, increased by $8.6 million, representing an increase of 10.6% compared to the same period in 2023. This growth was attributed to increased bulk fuel sales into the marine sector and higher volumes of vehicle fueling at stations. Conversely, the product revenue for the nine months ended September 30, 2024, decreased by $14.4 million, a decline of 5.2% year-over-year.
Service revenue also showed a year-over-year increase for the three months ended September 30, 2024, with a growth of $0.7 million, or 4.9%. For the nine months ended September 30, 2024, service revenue increased by $2.6 million, or 6.2%, compared to the same period in 2023.
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate reflects significant trends within the company’s financial performance:
- For the three months ended September 30, 2024, total revenue increased by 9.8% compared to the same period in 2023.
- For the nine months ended September 30, 2024, total revenue decreased by 3.7% compared to the same period in 2023.
Contribution of Different Business Segments to Overall Revenue
In terms of overall revenue contribution:
- Product revenue constituted 85.7% of total revenue for the three months ended September 30, 2024.
- Service revenue made up 14.3% of total revenue for the same period.
- For the nine months ended September 30, 2024, product revenue accounted for 85.6% of total revenue, while service revenue accounted for 14.4%.
Analysis of Significant Changes in Revenue Streams
Significant changes in revenue streams include:
- The increase in product revenue for the three months ended September 30, 2024, was primarily due to higher sales volumes in the marine sector and reduced contra-revenue charges related to stock-based sales incentives.
- The decrease in product revenue for the nine months ended September 30, 2024, was largely due to lower average fuel prices driven by a decrease in natural gas prices.
- Service revenue growth was primarily due to increased volume of operations and maintenance (O&M) services provided.
In summary, Clean Energy Fuels Corp. has experienced fluctuating revenue trends, with notable increases in service revenue while product revenue faced challenges due to pricing dynamics. The company continues to adapt its strategies to enhance growth in both segments.
A Deep Dive into Clean Energy Fuels Corp. (CLNE) Profitability
Profitability Metrics
The financial health of a company can be significantly assessed through its profitability metrics, which include gross profit, operating profit, and net profit margins. Below is a detailed analysis of these metrics for Clean Energy Fuels Corp. as of 2024.
Gross Profit, Operating Profit, and Net Profit Margins
As of the nine months ended September 30, 2024, the total revenue for the company was $306.5 million, a decrease from $318.3 million for the same period in 2023. The breakdown of revenues includes:
- Product revenue: $262.3 million (85.6% of total revenue)
- Service revenue: $44.3 million (14.4% of total revenue)
For the nine months ended September 30, 2024, the cost of sales was $184.2 million, leading to a gross profit of $122.3 million, and a gross profit margin of approximately 39.9%.
Operating expenses totaled $83.4 million, resulting in an operating loss of $7.6 million for the nine months ended September 30, 2024. This translates to an operating margin of approximately -2.5%.
The net loss attributable to the company was $52.9 million, translating to a net profit margin of approximately -17.2% for the same period.
Trends in Profitability Over Time
In comparing profitability metrics over time, the company experienced a shift in profitability as follows:
| Metric | 2023 (Nine Months) | 2024 (Nine Months) |
|---|---|---|
| Total Revenue | $318.3 million | $306.5 million |
| Gross Profit | $134.0 million | $122.3 million |
| Operating Loss | $21.9 million | $7.6 million |
| Net Loss | $80.8 million | $52.9 million |
The trends indicate a decrease in total revenue and gross profit, although the operating loss has improved, suggesting better cost management.
Comparison of Profitability Ratios with Industry Averages
When comparing profitability ratios with industry averages, the company’s gross profit margin of 39.9% is below the industry average of approximately 45%. The operating margin of -2.5% also lags behind the industry average of 5%, indicating challenges in operational efficiency.
Analysis of Operational Efficiency
The operational efficiency can be evaluated through various metrics, including cost management and gross margin trends. Key highlights include:
- Product cost of sales decreased from 75.6% of total revenue in 2023 to 60.1% in 2024.
- Selling, general, and administrative expenses decreased from $87.3 million in 2023 to $83.4 million in 2024.
- Depreciation and amortization decreased from $35.0 million in 2023 to $33.8 million in 2024.
These changes indicate improved cost management and operational efficiency, contributing to reduced losses.
Debt vs. Equity: How Clean Energy Fuels Corp. (CLNE) Finances Its Growth
Debt vs. Equity: How Clean Energy Fuels Corp. Finances Its Growth
Debt Levels
As of September 30, 2024, the company had total indebtedness of approximately $303.3 million in principal amount. This consists of long-term debt primarily from the Stonepeak Term Loan, which has a principal balance of $300 million. The remaining $3.3 million is attributed to other debt obligations .
The breakdown of long-term and short-term debt is as follows:
| Debt Type | Principal Amount | Maturity Date |
|---|---|---|
| Stonepeak Term Loan | $300,000,000 | December 12, 2029 |
| Other Debt | $3,300,000 | Various |
| Total Debt | $303,300,000 |
Debt-to-Equity Ratio
The company’s debt-to-equity ratio as of September 30, 2024, was approximately 0.41 based on total liabilities of $1,244.4 million and total stockholders’ equity of $731.1 million . This ratio indicates a moderate level of leverage compared to industry standards, where a typical debt-to-equity ratio for the clean energy sector is around 0.5 to 1.0.
Recent Debt Issuances and Credit Ratings
In December 2023, the company entered a senior secured first lien term loan credit agreement with a syndicate of lenders, amounting to $300 million. The loan bears an interest rate of 9.5% per annum . As of September 30, 2024, the company maintains a credit rating that reflects a stable outlook, though specific ratings were not disclosed in the available data.
Refinancing Activity
The company has indicated plans for refinancing if opportunities arise. It intends to manage its debt obligations prudently, which includes potential early repayments .
Balancing Debt Financing and Equity Funding
As of September 30, 2024, the company had $243.5 million in cash and short-term investments, providing a cushion to manage its debt obligations. The company has historically funded its capital expenditures, estimated at $60 million for 2024, primarily through cash on hand and operational cash flow .
The following table summarizes the company's financing structure as of September 30, 2024:
| Financing Source | Amount (in millions) |
|---|---|
| Long-term Debt | $300 |
| Other Debt | $3.3 |
| Cash and Short-term Investments | $243.5 |
| Total Financing Available | $546.8 |
Assessing Clean Energy Fuels Corp. (CLNE) Liquidity
Assessing Clean Energy Fuels Corp.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio is approximately 1.57, calculated from current assets of $385.1 million and current liabilities of $245.7 million.
Quick Ratio: The quick ratio stands at 1.38, indicating the company has sufficient liquid assets to cover its current liabilities, with quick assets totaling $285.1 million.
Working Capital Trends
As of September 30, 2024, the working capital is reported at $139.4 million, reflecting an increase from $36.6 million at the end of 2023. This improvement is largely attributed to an uptick in cash flow from operations.
| Period | Current Assets (in millions) | Current Liabilities (in millions) | Working Capital (in millions) |
|---|---|---|---|
| December 31, 2023 | $338.9 | $302.3 | $36.6 |
| September 30, 2024 | $385.1 | $245.7 | $139.4 |
Cash Flow Statements Overview
The cash flow from operating activities for the nine months ended September 30, 2024 is $42.7 million, a significant increase from $0.8 million in the same period of 2023. This increase is primarily due to enhanced revenue from natural gas procurement and sales.
Cash used in investing activities decreased to $30.6 million in 2024 from $96.7 million in 2023, driven by fewer capital expenditures and an increase in net maturities of short-term investments.
Cash used in financing activities was $0.1 million for the nine months ended September 30, 2024, compared to $3.0 million in the prior year, reflecting reduced debt issuance fees and increased incentive payments.
| Cash Flow Type | 2023 (in millions) | 2024 (in millions) |
|---|---|---|
| Operating Activities | $0.8 | $42.7 |
| Investing Activities | $96.7 | $30.6 |
| Financing Activities | $3.0 | $0.1 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company had total cash and cash equivalents of $243.5 million, down from $263.1 million at the end of 2023. The decrease is attributed to increased capital expenditures and cash used in investing activities.
Indebtedness totals approximately $303.3 million, with $29.3 million expected in interest payments for 2024. The company plans to make all principal and interest payments due within the next 12 months, indicating a strong liquidity position despite the existing debt levels.
| Debt Type | Amount (in millions) |
|---|---|
| Total Indebtedness | $303.3 |
| Interest Payments Due 2024 | $29.3 |
Is Clean Energy Fuels Corp. (CLNE) Overvalued or Undervalued?
Valuation Analysis
In assessing whether the company is overvalued or undervalued, we will consider key valuation ratios, stock price trends, dividend metrics, and analyst consensus.
Price-to-Earnings (P/E) Ratio
The current P/E ratio is -33.75, calculated from the trailing twelve months (TTM) net loss of $(52,911,000) and the weighted-average common shares outstanding of 223,310,150 shares, resulting in a diluted loss per share of $(0.24).
Price-to-Book (P/B) Ratio
The latest book value per share is $3.27, calculated from total stockholders' equity of $731,136,000 divided by shares outstanding of 223,430,400. The current stock price is approximately $1.20, giving a P/B ratio of 0.37.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The enterprise value is calculated as market capitalization plus total debt minus cash. The total debt is $303.3 million, and cash and short-term investments amount to $243.5 million. Assuming a market capitalization of $267.2 million (current stock price of $1.20 multiplied by shares outstanding), the enterprise value is approximately $327.0 million. For the nine months ended September 30, 2024, EBITDA is $(7,431,000), resulting in an EV/EBITDA ratio of -44.00.
Stock Price Trends Over the Last 12 Months
The stock price has fluctuated between a high of $2.50 and a low of $1.10 over the past year. Currently, it is trading at approximately $1.20, reflecting a decline of approximately 52% from its peak.
Dividend Yield and Payout Ratios
The company does not currently pay any dividends, resulting in a dividend yield of 0%. The payout ratio is also 0% due to the absence of dividends.
Analyst Consensus on Stock Valuation
As of the latest reports, the consensus among analysts is a "Hold" rating, with price targets averaging around $1.50.
| Valuation Metric | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -33.75 |
| Price-to-Book (P/B) Ratio | 0.37 |
| Enterprise Value (EV) | $327.0 million |
| EBITDA | $(7,431,000) |
| EV/EBITDA Ratio | -44.00 |
| Stock Price (Current) | $1.20 |
| Dividend Yield | 0% |
| Payout Ratio | 0% |
| Analyst Consensus | Hold |
Key Risks Facing Clean Energy Fuels Corp. (CLNE)
Key Risks Facing Clean Energy Fuels Corp.
Overview of Internal and External Risks:
Clean Energy Fuels Corp. faces various internal and external risks impacting its financial health. These include:
- Industry Competition: The clean energy sector is highly competitive, with numerous players vying for market share. The company must continuously innovate and reduce costs to maintain its competitive edge.
- Regulatory Changes: Changes in regulations concerning environmental standards and fuel taxes can significantly impact operational costs and revenue streams.
- Market Conditions: Fluctuations in natural gas prices directly affect profitability. For instance, product cost of sales for the nine months ended September 30, 2024, decreased by $56.5 million to $184.2 million, representing 60.1% of total revenue.
Operational, Financial, or Strategic Risks:
Recent earnings reports highlight several operational and financial risks:
- Interest Expense: Interest expense increased by $11.4 million to $24.0 million in the nine months ended September 30, 2024, primarily due to higher outstanding indebtedness.
- Loss from Equity Method Investments: Losses increased by $9.1 million to $16.2 million in the nine months ended September 30, 2024, due to the operating results of joint ventures.
- Net Loss: The company reported a net loss of $52.9 million for the nine months ended September 30, 2024, compared to a loss of $80.8 million for the same period in 2023.
| Risk Factor | Impact | 2024 Financial Data |
|---|---|---|
| Interest Expense | Increased cost of borrowing | $24 million |
| Loss from Equity Investments | Financial instability from joint ventures | $16.2 million |
| Net Loss | Overall profitability concerns | $52.9 million |
Mitigation Strategies:
The company has implemented several strategies to mitigate these risks:
- Cost Management: The decrease in selling, general, and administrative expenses by $3.9 million to $83.4 million in the nine months ended September 30, 2024, demonstrates efforts to control costs.
- Capital Investments: Planned capital expenditures of approximately $60.0 million in 2024 will focus on construction of fueling stations and LNG plant costs .
- Diversification: The company is pursuing joint ventures and new projects to diversify its revenue streams, including a $132.0 million investment in RNG production projects.
Future Growth Prospects for Clean Energy Fuels Corp. (CLNE)
Future Growth Prospects for Clean Energy Fuels Corp.
Analysis of Key Growth Drivers
In 2024, the company anticipates a significant focus on product innovations, particularly in Renewable Natural Gas (RNG). The total fuel volume sold for the nine months ended September 30, 2024, reached 218.9 million GGEs, up from 215.3 million GGEs in the same period of 2023. This growth is largely driven by an increase in RNG sales, which amounted to 174.7 million GGEs for the nine months ended September 30, 2024, compared to 168.7 million GGEs in 2023.
Future Revenue Growth Projections and Earnings Estimates
Revenue for the nine months ended September 30, 2024, was approximately $306.5 million, a slight decline from $318.3 million in the same period of 2023. However, the company expects to recover in 2025, with projections estimating total revenue growth driven by increased fuel sales and expanding service offerings. The company plans to allocate around $60 million for capital expenditures in 2024 to enhance operational capabilities.
Strategic Initiatives and Partnerships
In May 2024, a joint development agreement was established with Maas Energy Works, LLC, aimed at developing RNG production projects at dairy farms. The company is contemplating an investment of up to $132 million in these projects. Additionally, the ongoing partnership with BP in a joint venture continues to be a critical strategic initiative, with both parties contributing $67.95 million each to develop RNG facilities.
Competitive Advantages Positioning for Growth
- Market Leadership: The company maintains a strong position in the RNG market, with a notable increase in RIN (Renewable Identification Number) revenue, which soared to $29.4 million in the nine months ended September 30, 2024, from $16.7 million in the same period of 2023.
- Cost Management: Product cost of sales decreased significantly to 60.1% of total revenue in the nine months ended September 30, 2024, down from 75.6% in 2023, reflecting better cost management and pricing strategies.
- Growing Service Revenue: Service revenue increased to $44.3 million for the nine months ended September 30, 2024, compared to $41.6 million in 2023, highlighting a shift towards more service-oriented offerings.
Financial Overview Table
| Metric | 2023 (Nine Months) | 2024 (Nine Months) | Change |
|---|---|---|---|
| Total Revenue | $318.3 million | $306.5 million | -3.6% |
| Product Revenue | $276.6 million | $262.3 million | -5.2% |
| Service Revenue | $41.6 million | $44.3 million | +6.5% |
| Operating Loss | ($69.8 million) | ($23.4 million) | Improvement of 66.5% |
| Net Loss | ($80.8 million) | ($52.9 million) | Improvement of 34.5% |
The company is also focusing on enhancing its operational efficiency, with total cash and cash equivalents standing at $243.5 million as of September 30, 2024. This strong liquidity position supports future growth initiatives and capital expenditures necessary for expanding its market presence and operational capabilities.
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Updated on 16 Nov 2024
Resources:
- Clean Energy Fuels Corp. (CLNE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Clean Energy Fuels Corp. (CLNE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Clean Energy Fuels Corp. (CLNE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.