Investment Thesis
Clean Energy Fuels is unprofitable with negative operating cash flow of -$8.4M and free cash flow of -$15.3M, indicating the core business cannot sustain operations without cash depletion. Revenue growth of only 2.2% is insufficient to offset operational losses, and with $227.9M in long-term debt and $55.5M in cash, the runway for burning capital is limited absent significant operational improvement.
Strengths
- Strong liquidity position with current ratio of 2.46x and quick ratio of 2.14x
- Moderate leverage with debt-to-equity ratio of 0.41x provides some financial flexibility
- Positive revenue growth of 2.2% YoY indicates some market demand for services
Risks
- Severe profitability crisis: negative net income (-$12.4M), operating income (-$2.9M), and net margin of -10.6%
- Negative operating cash flow (-$8.4M) and free cash flow (-$15.3M) indicate unsustainable business model and cash depletion
- Low revenue growth (2.2%) insufficient to achieve near-term profitability; current cash position provides only ~6-7 quarters of runway at current burn rate
- Inability to generate positive returns: ROE of -2.2% and ROA of -1.2% demonstrate value destruction
- Significant long-term debt ($227.9M) requires service despite negative EBIT; interest coverage ratio unavailable due to negative operating income
Key Metrics to Watch
- Operating cash flow trend and path to positive OCF
- Quarterly revenue growth acceleration needed to justify continued operation
- Cash position depletion rate and runway remaining before covenant concerns
Financial Metrics
Revenue
117.6M
Net Income
-12.4M
EPS (Diluted)
$-0.06
Free Cash Flow
-15.3M
Total Assets
1.0B
Cash
55.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-2.5%
Net Margin
-10.6%
ROE
-2.2%
ROA
-1.2%
FCF Margin
-13.0%
Balance Sheet & Liquidity
Current Ratio
2.46x
Quick Ratio
2.14x
Debt/Equity
0.41x
Debt/Assets
45.6%
Interest Coverage
N/A
Long-term Debt
227.9M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T10:01:29.875746 |
Data as of: 2026-03-31 |
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