Clean Energy Fuels Corporation Stock Downgraded (CLNE)

NEW YORK (TheStreet) -- Clean Energy Fuels Corporation (Nasdaq:CLNE) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:

• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 227.1% when compared to the same quarter one year ago, falling from -$9.75 million to -$31.91 million.
• Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CLEAN ENERGY FUELS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
• The gross profit margin for CLEAN ENERGY FUELS CORP is rather low; currently it is at 24.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -43.30% is significantly below that of the industry average.
• Net operating cash flow has significantly decreased to -$15.08 million or 252.35% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
• CLEAN ENERGY FUELS CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CLEAN ENERGY FUELS CORP reported poor results of -$0.68 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings (-$0.62 versus -$0.68).

Clean Energy Fuels Corp., together with its subsidiaries, provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The company has a P/E ratio of 30, above the S&P 500 P/E ratio of 17.7. Clean Energy has a market cap of $1.17 billion and is part of the utilities sector and utilities industry. Shares are up 8% year to date as of the close of trading on Thursday.

You can view the full Clean Energy Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

For more information on Clean Energy Fuels Corporation click any of the following:

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• Clean Energy Fuels Corporation Income Statement