Clean Energy (CLNE)

[pack10]

Investors realizing this stock is undervalued?

Looking ahead
As much as diesel and gasoline prices have fallen, taking a big bite out of the cost benefit of natural gas, Clean Energy has continued to grow fuel sales at a steady clip, while also cutting operating expenses and capex. And while the company did report a $23 million loss, $14 million of that amount was non-cash depreciation and amortization, and cash from operations was $1.85 million in the quarter. Debt expense of $10.1 million last quarter remains a big drain, but that amount will fall by about 25% in coming months, moving the company about $2.5 million closer to cash-flow positive status.

The wild card: Can the company continue growing fuel sales at double-digit rates?

Most estimates are projecting 2016 natural gas vehicle sales to be flat with this year. However, the majority of those will be replacing diesel and gas vehicles, meaning the natural gas pie will grow larger. That's good news for Clean Energy. How good? Only time will tell.