Yahoo Finance When Will Clean Energy Fuels Corp. (NASDAQ:CLNE) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at Clean Energy Fuels Corp.'s (NASDAQ:CLNE) future prospects. Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets and related fueling solutions, primarily in the United States and Canada. On 31 December 2022, the US$1.1b market-cap company posted a loss of US$59m for its most recent financial year. The most pressing concern for investors is Clean Energy Fuels' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Clean Energy Fuels
Consensus from 6 of the American Oil and Gas analysts is that Clean Energy Fuels is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$32m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 43% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Clean Energy Fuels given that this is a high-level summary, though, keep in mind that typically energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 20% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Clean Energy Fuels, so if you are interested in understanding the company at a deeper level, take a look at Clean Energy Fuels' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:
Valuation: What is Clean Energy Fuels worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Clean Energy Fuels is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Clean Energy Fuels’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
