Thursday, August 03, 2017 9:16:45 AM
The trajectory of its cash flows has this stock potentially dirt cheap
Jason Hall (Clean Energy Fuels): If you've watched the price of Clean Energy's stock over the past few years, I wouldn't fault you for think this was a failing company knocking on the doors of death:
CLNE Chart
CLNE DATA BY YCHARTS
At least you might think that if you didn't go any further than just looking at the stock price. But when you pop the hood on the business itself, things look very different. Cash flows and funds from operations have improved greatly in the past three years:
CLNE Funds from Operations (TTM) Chart
CLNE FUNDS FROM OPERATIONS (TTM) DATA BY YCHARTS
This is a product of three things:
Cutting operating expenses, debt, and capital spending to drive down cash outflows.
Still spending enough capital to grow the station count.
Growing fuel volumes sold to drive higher gross profit dollars.
And this has the company positioned for what could be its best year ever from a cash-flow perspective, as its SG&A and interest expenses will be millions less this year, and fuel volumes are on track to grow in the high single digits again, driving even more profit margin dollars and potentially being free cash flow positive for the full year while also paying off even more debt.
From a value perspective, Clean Energy trades for less than 4 times trailing EBITDA, and less than 18 times cash from operations. For a company set to grow cash flows and core fuel volumes by nearly double-digit rates, that's pretty cheap.
The risk? A major asset sale earlier this year will further reduce debt and operating expenses, but it will also affect margins. If the effect is bigger than expected, cash flows could suffer. On balance, I think the reward is worth the risk.
Recent CLNE News
- J.B. Hunt kicks off Clean Energy’s Class 8 demo truck program equipped with Cummins X15N powered by ultraclean RNG • Business Wire • 09/16/2024 10:30:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 08:11:13 PM
- Clean Energy Reports Revenue of $98.0 Million and 57.1 Million RNG Gallons Sold for the Second Quarter of 2024 • Business Wire • 08/07/2024 08:05:00 PM
- Clean Energy’s Latest RNG Production Facility at Minnesota Dairy Begins Injecting Into Pipeline • Business Wire • 08/05/2024 10:30:00 AM
- Clean Energy Opens Clean-fuel RNG Station in Davenport, Florida • Business Wire • 07/31/2024 10:30:00 AM
- Clean Energy’s RNG Production Facility Breaks Ground at South Fork Dairy • Business Wire • 07/24/2024 10:30:00 AM
- Clean Energy to Report Second Quarter 2024 Financial Results on August 7; Conference Call to Follow at 1:30 p.m. Pacific Time • Business Wire • 07/16/2024 12:00:00 PM
- Clean Energy Opens Renewable Natural Gas Station in Philadelphia - South Jersey Area to Serve Fleets • Business Wire • 06/25/2024 10:30:00 AM
- Municipalities Adopt Cleaner Solutions Inking Agreements with Clean Energy • Business Wire • 06/20/2024 10:30:00 AM
- Clean Energy Expands Boron LNG Plant Capacity to Accommodate Increased Demand for Cleaner Fuel Driven by Pasha Hawaii Container Ships • Business Wire • 06/11/2024 10:30:00 AM
- Clean Energy Expands Fueling Footprint in So. California • Business Wire • 06/04/2024 10:30:00 AM
- Cemex US Signs Renewable Natural Gas Fuel Agreement with Clean Energy to Power Fleet in Southern California • Business Wire • 05/30/2024 10:30:00 AM
- Bi-Partisan Bill Introduced in U.S. Senate to Encourage the Use of Ultra-Low Carbon RNG in Transportation • Business Wire • 05/23/2024 10:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 08:46:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 08:42:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 08:37:33 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/20/2024 08:08:50 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 05/16/2024 09:30:14 PM
- Clean Energy and Maas Energy Works Join Forces to Build Nine Renewable Natural Gas Dairy Production Facilities Across Seven States • Business Wire • 05/14/2024 10:30:00 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 08:16:18 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 08:10:54 PM
- Clean Energy Reports Revenue of $103.7 Million and 58.0 Million RNG Gallons Sold for the First Quarter of 2024 • Business Wire • 05/09/2024 08:05:00 PM
- Clean Energy Announces First Injection of Renewable Natural Gas at Victory Farms Dairy • Business Wire • 04/23/2024 10:30:00 AM
- Clean Energy to Report First Quarter 2024 Financial Results on May 9; Conference Call to Follow at 1:30 p.m. Pacific Time • Business Wire • 04/12/2024 12:00:00 PM
- Clean Energy Appoints Patrick J. Ford to Board of Directors • Business Wire • 03/28/2024 10:30:00 AM
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