Bloom Energy Corp (BE, Financial) has experienced a significant uptick in its stock price, showcasing a 23.00% gain over the past week and an impressive 52.63% increase over the last three months. As of the latest data, the stock is trading at $16.8 with a market capitalization of $3.81 billion. According to GuruFocus, the current GF Value of $19.68 suggests that the stock is modestly undervalued. This marks a shift from three months ago when it was considered a possible value trap, indicating a need for investors to think twice before investing.
Overview of Bloom Energy Corp
Bloom Energy Corp, operating within the industrial products sector, is a pioneer in the design, manufacture, and installation of solid-oxide fuel cell systems. These systems, known as "Energy Servers," are capable of using a variety of fuels such as natural gas, biogas, and hydrogen to generate electricity. The company has expanded its technological base to include the electrolyzer market, aiming to enhance its product offerings. Bloom's primary markets include the United States and South Korea, positioning it as a key player in on-site power generation.
Assessing Profitability
Bloom Energy's financial health, particularly its profitability, poses some challenges. The company's Profitability Rank stands at 2/10, reflecting lower profitability within its industry. Its Operating Margin is currently at -15.02%, which is better than only 9.92% of 2953 companies in the same sector. Furthermore, its Return on Equity (ROE) and Return on Assets (ROA) are -66.63% and -12.02% respectively, placing it in the lower echelons compared to its peers. The Return on Invested Capital (ROIC) also stands at -12.05%, indicating inefficiencies in generating cash flow relative to the capital invested.
Growth Prospects
Despite the profitability concerns, Bloom Energy scores a Growth Rank of 7/10, suggesting a relatively high growth potential. The company has seen a 3-Year Revenue Growth Rate per Share of 3.10%, outperforming 32.01% of 2840 companies in its industry. However, its 5-Year Revenue Growth Rate per Share stands at -9.20%. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is an optimistic 20.43%, which is significantly better than 75.48% of 310 companies. This indicates potential for substantial future growth, supported by improvements in its 5-Year EPS Growth Rate, which is better than 72.51% of its peers.
Investor Holdings
Notable investors in Bloom Energy include Louis Moore Bacon (Trades, Portfolio), Jim Simons, and Jefferies Group (Trades, Portfolio), holding 0.17%, 0.05%, and 0.03% of shares respectively. These holdings reflect a level of confidence from some market participants, despite the company's financial metrics.
Competitive Landscape
Bloom Energy competes with companies like Hayward Holdings Inc (HAYW, Financial), Energizer Holdings Inc (ENR, Financial), and Encore Wire Corp (WIRE, Financial), with market caps of $2.99 billion, $2.22 billion, and $4.58 billion respectively. This places Bloom Energy in a competitive position within the industry, challenging it to leverage its technological innovations to maintain and grow its market share.
Conclusion
In conclusion, Bloom Energy Corp's recent stock performance has been notably strong, driven by its strategic expansions and potential growth in new markets. However, investors should be cautious due to its lower profitability metrics. The company's future growth prospects and current market valuation suggest a potential for recovery and profitability improvement, making it a stock to watch in the evolving energy sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
