Bloom Energy (BE) Stock

2023 Update

About Bloom Energy

Bloom Energy Corporation is a leading designer, manufacturer, seller, and installer of solid-oxide fuel cell systems for on-site power generation in the United States and internationally. Based in San Jose, California, the company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in 2006.

The company offers Bloom Energy Server, a solid oxide technology that converts fuel, such as natural gas, biogas, hydrogen, or a blend of these fuels, into electricity through an electrochemical process without combustion. This technology has been deployed in various industries, including data centers, retailers, hospitals, farming, semiconductors, and other manufacturing sectors.

Bloom Energy Corporation serves major customers, such as Amazon, Samsung, BMW, JPMorgan Chase, Google, and Microsoft, and has installed thousands of Bloom Energy Servers around the world. The company currently has over 2,530 full-time employees and works tirelessly to improve their products and services.

With a mission to make clean, reliable energy affordable and accessible to everyone on the planet, Bloom Energy Corporation is constantly innovating and pushing the boundaries of what’s possible with fuel cell systems. Their vision is to create a world in which everyone has access to reliable, clean, and affordable power.

Bloom Energy's Performance

Bloom Energy Corporation is a publicly-traded American energy technology company that develops and manufactures distributed power generation systems, which convert wastes into electricity. In 2020, the company reported total revenue of $1.27 billion and total debt of $1.016 billion. Furthermore, the company reported a return on equity of -68.39% and profit margins of -23.12%, indicating a negative financial performance.

Bloom’s operating cash flow has been negative for the last year, amounting to -$413.99 million, and their total cash per share has only been $1.54. Furthermore, the company’s debt to equity ratio stands at 136.46 and their current ratio at 2.7, and their quick ratio is 1.55.

In addition, Bloom’s gross profits for 2020 amounted to $257.59 million, and their gross margins are standing at 22.3%. However, their operating margins are -11.76% and their EBITDA margins at -7.61%, both of which cannot be regarded as positive financial indicators.

In terms of liquidity, the company currently holds $320.43 million in total cash and has a free cash flow of -$445.48 million. The company also has an earnings growth rate of 36.9%, indicating that their operations may improve in the near future.

Analysts have given a buy recommendation on Bloom Energy Corporation, and the mean target price for the company is $26.81, with a target low of $17.0 and a target high of $35.0. All in all, Bloom Energy Corporation appears to be struggling, with their financial indicators indicating a negative performance. However, their recommendation from analysts is still positive, and their earnings growth rate indicates potential for improvement in the short-term.

How does Bloom Energy Perform During a Recession?

During a recession, Bloom Energy Corporation focuses on increasing efficiency and cost savings, while also expanding its customer base. They develop and launch differentiated product solutions to target new customers in different market segments. They also work to build strategic relationships with customers in order to generate a broader base of revenue.

Because the company’s solutions often offer customers the ability to reduce their reliance on expensive grid power and have a positive impact on the environment, businesses continue to look to them for solutions even during a recession. Additionally, the company has taken steps to ensure strong financial performance, such as refinancing debt, reducing operating costs, and conserving cash.

Bloom Energy Corp. also has a strong strategy for fuel diversification, which is key to maintaining a competitive edge during a recession. By having a wide range of fuels available, such as natural gas, biogas, hydrogen, and renewable fuels, the company can respond quickly and effectively to shifts in the market. They also have a commitment to acquiring or developing new technologies that enhance their competitive advantage in the market.

Overall, Bloom Energy Corporation uses the volatility of a recession to their benefit, ensuring that they remain an industry leader, even during challenging economic times. They are proactive in their approach and, through innovation and strategic partnerships, continue to prove their commitment to creating an energy future that is clean, reliable, and affordable.

How does Bloom Energy Perform During High Inflation Economy?

When faced with high inflation, Bloom Energy Corporation takes extra precautions to ensure their energy solutions are made available to consumers who need them the most. This includes providing cost-effective energy solutions that are accessible and can be implemented by customers without sacrificing product quality or reliability. The company regularly reviews their energy portfolio and adjusts their pricing strategies to ensure customers remain competitive and prices remain as low as possible.

Bloom Energy Corporation is also focused on responding to environmental needs and is working to reduce their environmental footprint by creating energy solutions that are efficient, reliable, and cost-effective. The company’s operations comply with the Clean Air Act regulations and they are actively working towards making their energy processes and solutions carbon neutral.

Overall, Bloom Energy Corporation places value in creating energy solutions that are accessible and reliable to everyone, and they remain committed to making their products available and affordable during times of high inflation.

What Are the Risks Associated to Bloom Energy (BE)?

Nevertheless, there are a significant amount of risks associated with investing in Bloom Energy Corporation. These include the company’s weak balance sheet, their negative cash flow, high debt to equity ratio, uncertain industry conditions, regulatory uncertainties, and lack of profitability and market presence compared to other large-scale energy technology companies. Investors should conduct proper research and understand all the risks before investing in Bloom Energy Corporation.