BofA Cautions: Bloom Energy Orders to Slow by 2024
December 7, 2023
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Investors received a warning from Bank of America on Monday that Bloom Energy ($NYSE:BE) orders could slow by 2024. This news caused BofA to downgrade the stock of Bloom Energy, a company that specializes in providing clean energy solutions to businesses. Bloom Energy creates and deploys fuel cell systems, which use electrochemical reaction to convert fuel into electricity. The company has established itself as one of the leading providers for clean, on-site energy solutions to many leading corporations, such as Apple, Walmart, and Google. These warnings have investors concerned about the future of Bloom Energy orders. BofA has lowered their outlook for the stock from “buy” to “neutral” due to the potential for orders to slow down in 2024. It remains to be seen whether the concerns surrounding Bloom Energy orders hold true. If orders do slow down, investors could be in for a rocky ride.
However, if Bloom Energy can continue to provide clean energy solutions to its customers, the company could remain a leader in the space for years to come.
Stock Price
On Wednesday, Bank of America issued a cautionary report that Bloom Energy Orders may slow by 2024. This caused the stock to open at $15.1 and close at $14.2, down by 4.7% from its prior closing price of 14.9. They also noted that Bloom Energy is likely to struggle with heavy costs associated with their core product, fuel cell stacks. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Bloom Energy. More…
| Total Revenues | Net Income | Net Margin |
| 1.44k | -353.8 | -24.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Bloom Energy. More…
| Operations | Investing | Financing |
| -517.63 | -103.4 | 588.31 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Bloom Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.38k | 1.87k | 2.17 |
Key Ratios Snapshot
Some of the financial key ratios for Bloom Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.8% | – | -17.7% |
| FCF Margin | ROE | ROA |
| -43.2% | -40.2% | -6.7% |
Analysis
At GoodWhale, we have analyzed the fundamentals of BLOOM ENERGY and have concluded that it is classified as a ‘cheetah’ type company. Our Star Chart shows that this type of company generally achieves high revenue or earnings growth, but is considered less stable due to lower profitability. Based on this assessment, we believe that investors who are looking for fast growth would be more likely to take interest in BLOOM ENERGY. Indeed, BLOOM ENERGY is strong in growth, medium in asset and weak in dividend, profitability. However, its health score of 2/10 based on cashflows and debt is low and suggests that the company may find it difficult to pay off debt and fund future operations. More…
Peers
The competition between Bloom Energy Corp and its competitors is fierce. Plug Power Inc, FuelCell Energy Inc, and Ballard Power Systems Inc are all vying for a piece of the market share. Each company has its own unique technology and is constantly trying to improve upon its product. The competition is heating up and it is unclear who will come out on top.
– Plug Power Inc ($NASDAQ:PLUG)
Plug Power Inc is a provider of alternative energy technology solutions that designs, develops, manufactures, markets, and services hydrogen fuel cells. The Company’s products are used in a variety of applications, including: material handling, aerial lifts, backup power, and other stationary power applications. Plug Power Inc has a market cap of $9.55B as of 2022 and a Return on Equity of -13.42%. The company has been facing financial difficulties in recent years, which has led to its stock price fluctuating significantly.
– FuelCell Energy Inc ($NASDAQ:FCEL)
FuelCell Energy Inc is a US company that designs, manufactures, installs, operates and services ultra-clean, efficient and reliable fuel cell power plants. The company has a market capitalization of 1.23 billion as of 2022 and a return on equity of -10.2%. FuelCell Energy Inc’s products are used in a variety of applications including distributed power generation, cogeneration, captive power, micro-grid and combined heat and power.
– Ballard Power Systems Inc ($TSX:BLDP)
Ballard Power Systems Inc is a Canadian fuel cell company that designs, develops, manufactures, and sells fuel cells. The company has a market cap of 2.32B as of 2022 and a Return on Equity of -8.43%. Ballard Power Systems is a leading provider of clean energy solutions that enable its customers to reduce emissions, improve energy security, and increase efficiency. The company’s products are used in a variety of applications, including transportation, stationary power, and portable power.
Summary
Bloom Energy (BLOOM) is a publicly traded company specializing in clean energy solutions. On the same day, Bank of America downgraded BLOOM, citing concerns over order flows into 2024. This caused BLOOM’s stock price to move down. Investors should take caution when considering investing in BLOOM since the downgrade may indicate slower growth in the near future.
Additionally, investors should monitor the company’s news and developments regarding its order flows and customer base for further insight into the company’s performance.
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