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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Clean Energy Fuels Corp. (NASDAQ:CLNE), it is a company with robust financial health as well as an optimistic future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Clean Energy Fuels here.
Flawless balance sheet with reasonable growth potential
CLNE is an attractive stock for growth-seeking investors, with an expected earnings growth reaching triple digits in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by similar levels next year. This indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. CLNE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CLNE manages its cash and cost levels well, which is a crucial insight into the health of the company. CLNE seems to have put its debt to good use, generating operating cash levels of 0.37x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Clean Energy Fuels, there are three relevant aspects you should look at:
- Historical Performance: What has CLNE’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is CLNE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CLNE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CLNE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.