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Clean Energy Fuels - AI Stock Analysis

Analysis generated October 11, 2024

Clean Energy Fuels Corp. (NASDAQ: CLNE) is a leading provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The company offers compressed natural gas (CNG) and liquefied natural gas (LNG) as clean, cost-effective alternatives to gasoline and diesel fuel. Clean Energy Fuels markets and sells CNG, LNG, and renewable natural gas (RNG) produced by the firm and by independent third parties. This is done under services such as Clean Energy Compression, Clean Energy Cryogenics, and Redeem, which is their RNG brand. The company aims to provide sustainable fuel solutions and reduce overall environmental footprints.

Fundamental Analysis

The revenue for the last quarter was $98 million. Although this represents a decrease of 5.49% compared to the previous quarter, it marks an increase of 8.17% year-over-year. This indicates that while there may be some short-term revenue challenges, the company is still growing on an annual basis.

Net income for the last quarter was $16 million, reflecting an increase of 11.66% compared to the previous quarter and an increase of 0.05% year-over-year. This slight year-over-year increase showcases consistent performance, but the more significant quarterly growth is a positive indicator of short-term improvement.

EBITDA for the last quarter was $5.6 million. This substantial increase—2,153.41% from the previous quarter and 146.08% year-over-year—is a very positive sign of financial health and improved operational efficiency. EBITDA is an important metric as it indicates the company's operating performance, excluding the effects of financing and accounting decisions.

Technical Analysis

Today's stock price is $2.93, marking an increase of 2.45% compared to a month ago, suggesting some positive short-term momentum. However, compared to a year ago, there is a decrease of 24.29%, which can be a cause for concern over the long term.

The trend remains bearish with a current SMA10 of $2.93, slightly lower than the previous SMA10 of $2.94. This suggests a potential downward trend in price movement. The Relative Strength Index (RSI) is 30.4, indicating a neutral condition. The RSI value between 30 and 70 is generally interpreted as neither overbought nor oversold, suggesting a balanced market sentiment.

Alternative Data Analysis

Job postings and employee sentiment highlight some areas of concern. Clean Energy Fuels has 25 open positions, down by 26% in the last couple of months. This decrease indicates cost-cutting measures, which may not bode well for a company looking to expand. Additionally, the business outlook among employees is generally neutral.

The estimated 9,000 visitors to their webpage is down by 55% in the last couple of months, indicating a potentially significant loss in customer interest or engagement. This worrisome trend is a red flag for future customer acquisition and revenue growth.

Lastly, AltIndex's AI score, which attempts to predict the company's stock price based on comprehensive data analysis, gives Clean Energy Fuels a score of 53. A score of 50 would be neutral, so a 53 indicates a 'hold' recommendation.

Conclusion

Clean Energy Fuels presents a mixed bag in terms of stock analysis. Fundamentally, the company shows signs of growth with a year-over-year increase in both revenue and net income. The significant rise in EBITDA is particularly encouraging. However, the short-term revenue decrease and slight improvements in net income warrant careful monitoring.

Technically, the stock exhibits a bearish trend with a neutral RSI, indicating current market indecision. The positive short-term price movement could reverse if the bearish trend persists.

Looking at alternative data, the decline in job postings and webpage visitors raises concerns about the company's growth prospects and customer engagement. The neutral employee sentiment further suggests underlying uncertainties.

Based on the combination of fundamental, technical, and alternative data analysis, my recommendation would be to hold the stock. The positive year-over-year fundamentals are tempered by short-term concerns and negative trends in alternative data metrics. Investors should keep a close eye on upcoming financial results and market conditions to make more informed decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.