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Bloom Energy (Bloom Energy) Altman Z-Score : -0.45 (As of Jun. 25, 2024)


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What is Bloom Energy Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of -0.48 is in distress zone. This implies bankruptcy possibility in the next two years.

Bloom Energy has a Altman Z-Score of -0.45, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Bloom Energy's Altman Z-Score or its related term are showing as below:

BE' s Altman Z-Score Range Over the Past 10 Years
Min: -3.11   Med: -1.03   Max: -0.22
Current: -0.48

During the past 8 years, Bloom Energy's highest Altman Z-Score was -0.22. The lowest was -3.11. And the median was -1.03.


Bloom Energy Altman Z-Score Historical Data

The historical data trend for Bloom Energy's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Bloom Energy Altman Z-Score Chart

Bloom Energy Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial -2.82 -0.32 -0.65 -0.57 -0.30

Bloom Energy Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.45 -0.38 -0.39 -0.30 -0.60

Competitive Comparison of Bloom Energy's Altman Z-Score

For the Electrical Equipment & Parts subindustry, Bloom Energy's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bloom Energy's Altman Z-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Bloom Energy's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Bloom Energy's Altman Z-Score falls into.



Bloom Energy Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Bloom Energy's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.5358+1.4*-1.7173+3.3*-0.0776+0.6*1.6727+1.0*0.5659
=-0.45

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2024:
Total Assets was $2,286 Mil.
Total Current Assets was $1,580 Mil.
Total Current Liabilities was $355 Mil.
Retained Earnings was $-3,926 Mil.
Pre-Tax Income was -57.044 + 4.928 + -167.432 + -68.881 = $-288 Mil.
Interest Expense was -14.546 + -14.563 + -68.037 + -13.953 = $-111 Mil.
Revenue was 235.298 + 356.916 + 400.268 + 301.095 = $1,294 Mil.
Market Cap (Today) was $3,006 Mil.
Total Liabilities was $1,797 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1579.595 - 354.671)/2286.054
=0.5358

X2=Retained Earnings/Total Assets
=-3925.915/2286.054
=-1.7173

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-288.429 - -111.099)/2286.054
=-0.0776

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3005.745/1796.904
=1.6727

X5=Revenue/Total Assets
=1293.577/2286.054
=0.5659

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Bloom Energy has a Altman Z-Score of -0.45 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Bloom Energy  (NYSE:BE) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Bloom Energy Altman Z-Score Related Terms

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Bloom Energy (Bloom Energy) Business Description

Traded in Other Exchanges
Address
4353 North First Street, San Jose, CA, USA, 95134
Bloom Energy designs, manufactures, sells, and installs solid-oxide fuel cell systems ("Energy Servers") for on-site power generation. Bloom Energy Servers are fuel-flexible and can use natural gas, biogas, and hydrogen to create 24/7 electricity for stationary applications. In 2021, the company announced plans to leverage its technology and enter the electrolyzer market. Bloom primarily sells its systems in the United States and South Korea.
Executives
Guillermo Brooks officer: EVP, Sales - Americas 4353 NORTH FIRST STREET, SAN JOSE CA 95134
Shawn Marie Soderberg officer: EVP, GC & Secretary 1000 ALFRED NOBEL DRIVE, HERCULES CA 94547
Sharelynn Faye Moore officer: EVP, Chief Marketing Officer 424 W. HIGH DRIVE, SPOKANE WA 99203
Cynthia J Warner director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Kr Sridhar director, officer: Chairman & CEO 1299 ORLEANS DRIVE, SUNNYVALE CA 94089
Glen Griffiths officer: EVP, Services 4353 NORTH FIRST STREET, SAN JOSE CA 95134
Gregory D Cameron officer: See Remarks 4353 NORTH FIRST STREET, SAN JOSE CA 95134
Eddy Zervigon director 1601 DRY CREEK DRIVE, SUITE 260, LONGMONT CO 80503
Jeffrey R Immelt director GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
John T Chambers director 170 W. TASMAN DR., SAN JOSE CA 95134-1706
Michael J Boskin director C/O RIPPLEWOOD HOLDINGS LLC, ONE ROCKERFELLER PLAZA, NEW YORK NY 10020
Mary K Bush director 3509 WOODBINE STREET, CHEVY CHASE MD 20815
Swaminathan Venkataraman officer: EVP of Engineering and CTO 1299 ORLEANS DRIVE, SUNNYVALE CA 94089
Sk Ecoplant Co., Ltd. 10 percent owner 19 YULGOK-RO 2-GIL, JONGNO-GU, SEOUL M5 03149
Susan Seilheimer Brennan officer: EVP and COO 1299 ORLEANS DRIVE, SUNNYVALE CA 94089