Clean Energy Fuels (CLNE) Is Today's Perilous Reversal Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Clean Energy Fuels as such a stock due to the following factors:
- CLNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
- CLNE has traded 199,839 shares today.
- CLNE is down 3.3% today.
- CLNE was up 19.2% yesterday.
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More details on CLNE:
Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets. It designs, builds, operates, and maintains fueling stations. Currently there are 3 analysts that rate Clean Energy Fuels a buy, 2 analysts rate it a sell, and 4 rate it a hold.
The average volume for Clean Energy Fuels has been 1.7 million shares per day over the past 30 days. Clean Energy has a market cap of $472.8 million and is part of the utilities sector and utilities industry. The stock has a beta of 2.13 and a short float of 21.2% with 5.87 days to cover. Shares are up 0.9% year-to-date as of the close of trading on Thursday.
Analysis:
rates Clean Energy Fuels as a
. 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 generally high debt management risk.
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 against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 59.8% when compared to the same quarter one year ago, falling from -$18.84 million to -$30.09 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 18.80%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -29.09% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$13.12 million or 387.84% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio of 1.42 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.88, which shows the ability to cover short-term cash needs.
- You can view the full Clean Energy Fuels Ratings Report.
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