Bloom Energy (BE) manufactures and sells clean energy fuel cell generators. The company offers a unique and sustainable energy source, which serves as primary or backup power for large operations, including hospitals, big box stores, and utilities companies.
The generators do not use combustion and they produce energy using natural gas, biogas, or hydrogen. The modules are considered low carbon and zero emissions, thus they are fit for a market which demands sustainability.
The energy generators are very popular and the company reported a backlog of 6,549 systems for Q4 2021. This backlog equates to a value of $5.8 billion in potential future revenues.
The company recently reported record financial performance for Q4 2021 and beat expectations. Bloom Energy updated its guidance and outlook for 2021 with higher expectations.
The company’s stock price has seen some uptrend over the last 12 months. I rate the company as bullish.
Bloom’s Q4 2021 Financial Performance
The company reported record earnings for Q4 2021. Revenue was $342.5 million, representing a 37.3% increase compared to last year’s same quarter. Bloom Energy showed a record level of deliveries of energy systems during Q4 2021, equating to 735 systems, an increase of 63.3% compared to last year’s same quarter.
The company reported a gross profit of $68.7 million and a 20% profit margin. Bloom Energy showed a net loss of $33.323 million. The company gave a forecast for 2022 financial performance with one-year revenue estimates between $1.1 billion and $1.5 billion.
Bloom Energy foresees the number of module deliveries or acceptances continuing to increase for the year as well.
Innovative Fuel Cell Technology in High Demand
The company offers a unique solution for clean energy, decarbonization, and the hydrogen/renewable fuels economy. The company has its units manufactured and then sells, installs, and maintains them for large clients.
Bloom Energy serves the needs of large corporations and utilities companies. Its clients include Nokia, Costco, Home Depot, Kaiser Permanente, and Walmart.
A module consists of solid oxide fuel cells stacked on top of each other; combined modules produce an energy platform. The generators can take different clean energy fuels, including hydrogen.
They have little to no emissions and do not have any combustion. The generators are considered highly efficient and carbon neutral. They are powerful and reliable enough to run cruise ships and to maintain municipal utilities, who supply local power to cities.
As it stands, Bloom Energy cannot keep up with the demand for its modules. The company has expanded its manufacturing partnerships and plans to increase capacity.
Bullish Outlook
The company reports record revenues and financial performance. Bloom Energy’s 2022 outlook is impressive for growth. The company’s stock has seen some high points over the last 12 months. A year ago, it was trading around $42 per share. Last November, it was at $36.
With recent volatility, the price is between $15 and $20, but momentum remains high and investor sentiment is strong.
Wall Street’s Take
Turning to Wall Street, Bloom Energy has a Moderate Buy rating based on five Buy and six Hold ratings in the last three months. The average Bloom Energy price target of $25.73 implies a 32% upside potential.
Conclusion
Bloom Energy has high expectations for 2022. Its green energy fuel cell generators are in such high demand that the company cannot keep up with manufacture.
The company is reporting record revenues and deliveries for Q4 2021. Bloom Energy predicts this trend in demand to continue for the next year.
The company offers a unique energy solution to large corporations and utilities companies. Its green energy fuel cell system uses renewable fuels like hydrogen and has no combustion or emissions.
Since carbon neutral energy solutions are the way of the future, I expect Bloom Energy to continue to be a key player. I rate the company as bullish.
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