Investors might be losing patience for Clean Energy Fuels' (NASDAQ:CLNE) increasing losses, as stock sheds 8.8% over the past week

By
Simply Wall St
Published
November 22, 2021
NasdaqGS:CLNE
Source: Shutterstock

Clean Energy Fuels Corp. (NASDAQ:CLNE) shareholders might be concerned after seeing the share price drop 12% in the last month. In contrast, the return over three years has been impressive. In fact, the share price is up a full 237% compared to three years ago. So the recent fall in the share price should be viewed in that context. If the business can perform well for years to come, then the recent drop could be an opportunity.

In light of the stock dropping 8.8% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive three-year return.

Check out our latest analysis for Clean Energy Fuels

Clean Energy Fuels wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Clean Energy Fuels actually saw its revenue drop by 10% per year over three years. So we wouldn't have expected the share price to gain 50% per year, but it has. It's fair to say shareholders are definitely counting on a bright future.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqGS:CLNE Earnings and Revenue Growth November 23rd 2021

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free report showing analyst forecasts should help you form a view on Clean Energy Fuels

A Different Perspective

We're pleased to report that Clean Energy Fuels shareholders have received a total shareholder return of 73% over one year. That's better than the annualised return of 17% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with Clean Energy Fuels .

We will like Clean Energy Fuels better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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