Should you continue to rely on Clean Energy management?

Clean Energy Revenue Per Employee is expected to increase significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 835,109. The current year Average Assets is expected to grow to about 857 M, whereas Accounts Payable Turnover is expected to decline to 13.07. The upcoming quarterly report is expected on the 13th of August 2020. The stock experiences an active upward rally. The fundamental objective of this short story is to break down our forecasting of Clean for shareholders. We will try to forecast Clean Energy outlook for August. Clean Energy Fuels shows a prevailing Real Value of $2.25 per share. The current price of the firm is $2.86. Based on Macroaxis valuation methodology, the firm appears to be overvalued. Our model approximates the value of Clean Energy Fuels from analyzing the firm fundamentals such as return on equity of 5.12 %, and profit margin of 9.39 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Published over a year ago
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Reviewed by Rifka Kats

Clean Energy Fuels utilizes its assets nearly 2.04 percent, earning $0.0204 for each dollar of assets held by the firm. An expanding asset utilization signifies that the company is being more effective with each dollar of assets it shows. Put another way asset utilization of Clean Energy shows how effective it operates for each dollar spent on its assets. The company has Profit Margin (PM) of 9.39 %, which can be a sign that it executes well on its competitive strategies and has a good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 6.76 % which suggests for every 100 dollars of sales it generated a net operating income of 0.07.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Clean Energy Fuels. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Clean Energy

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Clean Energy's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Clean Energy. Your research has to be compared to or analyzed against Clean Energy's peers to derive any actionable benefits. When done correctly, Clean Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Clean Energy Fuels.

How important is Clean Energy's Liquidity

Clean Energy financial leverage refers to using borrowed capital as a funding source to finance Clean Energy Fuels ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Clean Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Clean Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Clean Energy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Clean Energy's total debt and its cash.

Breaking it down a bit more

Clean Energy discloses 69.29 m in ebitda. The entity reported previous year revenue of 352.37 M. Net Income was 33.07 M with profit before overhead, payroll, taxes, and interest of 131.96 M. The latest price spikes of Clean Energy Fuels could raise concerns from investors as the firm closed today at a share price of 2.28 on very low momentum in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.46. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Clean Energy partners.
Clean Energy Net Income Per Employee is increasing over the last 8 years. Moreover, Clean Energy Revenue Per Employee is rather stable at the moment.

Our take on today Clean Energy ascent

Clean Energy latest total risk alpha ascents over 0.46. Clean Energy Fuels shows above-average downside volatility of 3.56 for the selected time horizon. We advise investors to inspect Clean Energy Fuels further and to ensure all market timing and asset allocation strategies are consistent with estimation about Clean Energy future alpha.

The Bottom Line

Although many of the other players within oil & gas refining & marketing industry are still a little expensive, even after the recent corrections, Clean Energy may offer a potential longer-term growth to shareholders. To conclude, as of 9th of July 2020, our overall 30 days recommendation on the firm is Strong Hold. We believe Clean Energy is currently overvalued with below average odds of financial turmoil for the next two years. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take in new shares of Clean nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Clean Energy.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Clean Energy Fuels. Please refer to our Terms of Use for any information regarding our disclosure principles.

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