Bloom Energy Corp (BE, Financial) has recently witnessed a remarkable surge in its stock price, with a 32.12% increase over the past week and an impressive 89.86% gain over the last three months. Currently, the company boasts a market capitalization of $3.88 billion and a stock price of $17.08. According to GuruFocus, the GF Value of Bloom Energy is $19.36, suggesting that the stock is modestly undervalued. This is a significant shift from three months ago when the GF Value was at $25.51, indicating a possible value trap scenario at that time.
Introduction to 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, which primarily operates in the United States and South Korea, announced its expansion into the electrolyzer market in 2021. This strategic move is aimed at leveraging its existing technology to tap into new market opportunities.
Assessing Profitability
Despite its innovative technology, Bloom Energy's financial health, as indicated by its Profitability Rank, remains low at 2/10. The company's Operating Margin stands at -15.02%, which is better than only 9.69% of 2,972 companies in the same sector. Additionally, its Return on Equity (ROE) and Return on Assets (ROA) are -66.63% and -12.02% respectively, positioning Bloom Energy at the lower end of the industry spectrum. The Return on Invested Capital (ROIC) is also negative at -12.05%, further highlighting challenges in profitability.
Growth Prospects
Bloom Energy's Growth Rank is considerably better, rated at 7/10. The company has shown a modest 3.10% growth in 3-Year Revenue per Share, surpassing 34.36% of its peers. However, its 5-Year Revenue Growth Rate per Share has declined by 9.20%. Looking ahead, Bloom Energy is expected to achieve a Total Revenue Growth Rate of 20.68% over the next 3 to 5 years, which is significantly higher than 88.35% of the companies in the industry. The EPS without NRI is projected to grow at 25.00% during the same period, indicating potential for substantial earnings growth.
Key Shareholders
Among the notable shareholders of Bloom Energy, Louis Moore Bacon (Trades, Portfolio) holds 396,985 shares, representing 0.17% of the company. Jim Simons follows with 111,500 shares, or 0.05%, and Jefferies Group (Trades, Portfolio) holds 72,250 shares, accounting for 0.03% of the shares.
Competitive Landscape
Bloom Energy faces competition from several key players in the industrial products sector. Hayward Holdings Inc (HAYW, Financial) with a market cap of $3.15 billion, Energizer Holdings Inc (ENR, Financial) valued at $2.08 billion, and Encore Wire Corp (WIRE, Financial) with a market cap of $4.4 billion are among its closest competitors. These companies, like Bloom, are vying for leadership in the evolving market of energy solutions.
Conclusion
In conclusion, Bloom Energy Corp's recent stock performance has been notably strong, with significant gains over the past few months. While the company's profitability metrics suggest some challenges, its forward-looking growth projections and strategic market expansions provide a positive outlook. Investors should keep an eye on how Bloom manages its profitability while capitalizing on its growth opportunities in the competitive industrial products 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.
