Clean Energy Fuels Corp. (NASDAQ: CLNE)

Sector: Energy Industry: Oil & Gas Refining & Marketing CIK: 0001368265
Market Cap 584.82 Mn
P/B 1.00
P/E -2.80
P/S 1.39
ROIC (Qtr) -16.84
Div Yield % 0.00
Rev 1y % (Qtr) 1.20
Total Debt (Qtr) 381.56 Mn
Debt/Equity (Qtr) 0.65
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About

Clean Energy Fuels Corp., or Clean Energy, is a prominent company in the renewable energy sector, with its primary focus on the provision and distribution of renewable natural gas (RNG) and conventional natural gas in the form of compressed natural gas (CNG) and liquefied natural gas (LNG) for the transportation markets in the United States and Canada. Clean Energy's core business activities revolve around the production and distribution of RNG, sourced from its own facilities, third-party suppliers, and marketers. This RNG is then injected into...

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Investment thesis

Bull case

  • Healthy cash reserves of 182.96M provide 18.49x coverage of short-term debt 9.90M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.12B provides 2.93x coverage of total debt 381.56M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.12B provide exceptional 107.42x coverage of deferred revenue 10.42M, showing strong service capability backing.
  • Long-term investments of 262.50M provide solid 0.71x coverage of long-term debt 371.66M, indicating strategic financial planning.
  • Operating cash flow of 94.28M provides strong 9.05x coverage of deferred revenue 10.42M, indicating service delivery capability.

Bear case

  • Operating cash flow of 94.28M barely covers its investment activities of (17.10M), with a coverage ratio of -5.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • High receivables of 138.33M relative to inventory of 44.42M (3.11 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 94.28M shows concerning coverage of stock compensation expenses of 78.35M, with a 1.20 ratio indicating potential earnings quality issues.
  • Operating cash flow of 94.28M provides minimal -130.40x coverage of tax expenses of (723000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (178.72M) show weak coverage of depreciation charges of 106.17M, with a -1.68 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2023)

Geographical Breakdown of Revenue (2023)

Peer comparison

Companies in the Oil & Gas Refining & Marketing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MPC Marathon Petroleum Corp 142.92 Bn 53.05 1.86 34.20 Bn
2 VLO Valero Energy Corp/Tx 79.27 Bn 8.41 0.46 10.58 Bn
3 PSX Phillips 66 70.22 Bn 27.51 0.54 21.76 Bn
4 SUN Sunoco LP 5.94 Bn 11.81 0.45 10.07 Bn
5 DINO HF Sinclair Corp 5.65 Bn 289.25 1.17 3.16 Bn
6 PBF PBF Energy Inc. 3.87 Bn -24.43 0.13 2.90 Bn
7 DK Delek US Holdings, Inc. 2.42 Bn 7.69 0.13 3.59 Bn
8 CVI Cvr Energy Inc 2.28 Bn 13.73 0.31 1.83 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.73 0.76
EV to Cash from Ops. EV/CFO 8.74 8.58
EV to Debt EV to Debt 2.16 2.22
EV to EBIT EV/EBIT -4.61 10.87
EV to EBITDA EV/EBITDA -14.74 9.19
EV to Free Cash Flow [EV/FCF] EV/FCF 23.38 10.02
EV to Market Cap EV to Market Cap 1.41 1.76
EV to Revenue EV/Rev 1.95 0.77
Price to Book Value [P/B] P/B 1.00 6.86
Price to Earnings [P/E] P/E -2.80 34.12
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.72
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 28.49
Dividend per Basic Share Div per Share (Qtr) 0.00 1.75
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -37.85
Interest Coverage Int. cover (Qtr) -5.73 1.50
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 39.14 -33.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 53.74 150.03
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -380.52 -40.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -336.21 451.72
EBIT Growth (1y) % EBIT 1y % (Qtr) -384.70 -35.27
EBT Growth (1y) % EBT 1y % (Qtr) -194.71 -53.20
EPS Growth (1y) % EPS 1y % (Qtr) -190.62 -26.82
FCF Growth (1y) % FCF 1y % (Qtr) 412.77 12.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.18 31.60
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.37 2.36
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.42
Cash Ratio Cash Ratio (Qtr) 1.20 0.39
Current Ratio Curr Ratio (Qtr) 2.69 1.41
Debt to Equity Ratio Debt/Equity (Qtr) 0.65 10.15
Interest Cover Ratio Int Coverage (Qtr) -5.73 1.50
Times Interest Earned Times Interest Earned (Qtr) -5.73 1.50
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -17.20 6.34
EBIT Margin % EBIT Margin % (Qtr) -42.37 1.61
EBT Margin % EBT Margin % (Qtr) -49.76 -2.36
Gross Margin % Gross Margin % (Qtr) 27.90 12.04
Net Profit Margin % Net Margin % (Qtr) -49.60 -3.21