NEW YORK (TheStreet) -- Shares of Clean Energy Fuels (CLNE) - Get Report were gaining 17.98% to $6.56 Thursday after the gas utilities company announced it is on track to complete a record 36 new station projects in 2015.
Clean Energy said it completed a total of 14 station construction projects for refuse customers in the first half of 2015. The company expects to complete another 22 station construction projects in the second half of the year.
The company said the stations supports the largest waste companies in the U.S. such as Waste Management (WM) - Get Report, Clean Energy Fuels (RSG) - Get Report, and Progressive Waste Solutions (BIN) .
"Despite being the first market to fully adopt natural gas years ago, the refuse industry continues to provide Clean Energy with very healthy growth," Clean Energy President and CEO Andrew J. Littlefair said in a statement. "The second half of each year typically provides the most robust activity in station construction for our refuse customers as this is when their new trucks arrive and we believe 2015 will be no exception."
TheStreet Ratings team rates CLEAN ENERGY FUELS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLEAN ENERGY FUELS CORP (CLNE) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CLEAN ENERGY FUELS CORP's earnings per share declined by 13.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, CLEAN ENERGY FUELS CORP reported poor results of -$0.95 versus -$0.71 in the prior year. For the next year, the market is expecting a contraction of 12.6% in earnings (-$1.07 versus -$0.95).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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 24.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -36.28% is significantly below that of the industry average.
- Looking at the price performance of CLNE's shares over the past 12 months, there is not much good news to report: the stock is down 53.57%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The debt-to-equity ratio of 1.44 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 2.84, which shows the ability to cover short-term cash needs.
- You can view the full analysis from the report here: CLNE Ratings Report