Bloom Energy Corp (BE, Financial), with a current market capitalization of $3.51 billion and a stock price of $15.47, has experienced notable fluctuations recently. Over the past week, the stock has declined by 2.60%, yet it has surged by an impressive 48.79% over the last three months. According to the GF Value, which is currently set at $19.43, Bloom Energy is considered modestly undervalued. This is a shift from three months ago when the GF Value was at $21.67, suggesting a possible value trap at that time.
Overview of Bloom Energy Corp
Bloom Energy operates within the Industrial Products sector, specializing in the design, manufacture, and installation of solid-oxide fuel cell systems known as "Energy Servers." These systems are capable of using a variety of fuels such as natural gas, biogas, and hydrogen to generate electricity. In 2021, Bloom Energy also ventured into the electrolyzer market, expanding its technology applications. The company primarily serves markets in the United States and South Korea. 
Assessing Profitability
Bloom Energy's Profitability Rank stands at a low 2 out of 10. The company's operating margin is currently at -15.02%, which, despite being negative, is better than 9.97% of 2,958 companies in the Industrial Products sector. Its Return on Equity (ROE) is -66.63%, and its Return on Assets (ROA) is -12.02%, both of which are relatively low but still outperform a small fraction of industry peers. The Return on Invested Capital (ROIC) is also negative at -12.05%. 
Growth Trajectory
The company's Growth Rank is considerably higher at 7 out of 10. Bloom Energy has seen a 3-year revenue growth rate per share of 3.10%, which is better than 33.45% of its industry peers. However, its 3-year EPS without NRI growth rate is -9.20%. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is an optimistic 20.91%, and the future EPS growth rate is projected at 25.00%. These figures suggest significant potential for improvement and expansion. 
Investor Holdings
Notable investors in Bloom Energy include Louis Moore Bacon (Trades, Portfolio), holding 396,985 shares (0.17% of the company), and Jim Simons, with 111,500 shares (0.05%). Additionally, Jefferies Group (Trades, Portfolio) holds 72,250 shares, representing 0.03% of the company. These holdings indicate a level of confidence from some savvy investors, despite the company's current financial metrics.
Competitive Landscape
Bloom Energy faces competition from several companies within the Industrial Products sector. Close competitors include Hayward Holdings Inc (HAYW, Financial) with a market cap of $2.82 billion, and Energizer Holdings Inc (ENR, Financial) with a market cap of $2 billion. A larger competitor is Encore Wire Corp (WIRE, Financial), which has a market cap of $4.56 billion. These companies represent a diverse range of market capabilities and performance metrics within the industry.
Conclusion
Despite facing significant challenges in profitability, Bloom Energy's position in the market is bolstered by promising growth prospects and strategic expansions into new technology areas like electrolyzers. The company's recent stock price rally reflects investor optimism about its future potential in green energy solutions. As the industry evolves, Bloom Energy's innovative approach could well position it as a key player in the sustainable 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.
