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Bloom Energy (BE)
NYSE:BE
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Bloom Energy
(NYSE:BE)
59Neutral
Positive Factors
Competitive Advantage
The economic wedge between Bloom Energy's offering and competitors is improving, as Bloom is reducing costs while competitors are raising prices.
Factory Utilization
Expect increased factory utilization to reduce variability in margins, as BE plans to run its factory at higher utilization given improved visibility, strong liquidity, and expected cost benefits from producing at scale.
Negative Factors
Operating Expenses
Adding to Salesforce drives operating expenses higher, with cash opex in 2025 estimated to increase due to the addition of experienced sales professionals.
Reporting and Transparency
BE no longer reports certain key metrics, which could make it challenging to fully assess the company's performance.
Visibility and Revenue
There is limited visibility on converting safe harbor orders into revenue, creating uncertainty in achieving projected revenue targets.
Bloom Energy (BE) vs. S&P 500 (SPY)
Market Cap
$3.83B
Dividend YieldN/A
Average Volume (3M)7.10M
Price to Earnings (P/E)―
Beta (1Y)2.14
Revenue Growth10.53%
EPS Growth90.76%
CountryUS
Employees2,127
SectorIndustrials
Sector Strength63
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.23
Shares Outstanding230,507,500
10 Day Avg. Volume6,599,330
30 Day Avg. Volume7,102,951
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.74
Price to Cash Flow (P/CF)2.90
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.79Price Target Upside49.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Bloom Energy Business Overview & Revenue Model
Company DescriptionBloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally. The company offers Bloom Energy Server, a power generation platform that converts fuel, such as natural gas, biogas, hydrogen, or a blend of these fuels, into electricity through an electrochemical process without combustion. It serves data centers, hospitals, healthcare manufacturing facilities, biotechnology facilities, grocery stores, hardware stores, banks, telecom facilities and other critical infrastructure applications. The company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in September 2006. Bloom Energy Corporation was incorporated in 2001 and is headquartered in San Jose, California.
How the Company Makes MoneyBloom Energy makes money primarily through the sale and service of its Bloom Energy Servers, which are solid oxide fuel cell systems capable of converting natural gas, biogas, or hydrogen into electricity through a clean electrochemical process. The company's revenue model includes direct sales of these energy servers to various commercial, industrial, and governmental clients. Additionally, Bloom Energy generates recurring revenue through long-term service agreements and maintenance contracts for its installed systems. The company also engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. Furthermore, Bloom Energy benefits from various governmental incentives and subsidies aimed at promoting clean energy solutions, which contribute to its financial performance.
Bloom Energy Financial Statement Overview
Summary
Bloom Energy shows strong revenue growth and improved cash flow. However, it struggles with profitability and high leverage, signaling a need for better operational efficiency and debt reduction.Income Statement
Bloom Energy has demonstrated consistent revenue growth over the past years, with a significant revenue increase from 2023 to 2024. The gross profit margin improved from 14.8% in 2023 to 27.4% in 2024, indicating better cost control. However, the company is still struggling with profitability, as evidenced by the negative net profit margins, although there is an improvement from -22.7% in 2023 to -2.0% in 2024. The EBIT and EBITDA margins show a similar trend, indicating operational challenges but also signs of recovery.65
Positive
Balance Sheet
The company's debt-to-equity ratio improved from 2.9 in 2023 to 2.3 in 2024, reflecting a more balanced capital structure. The return on equity remains negative due to net losses, but the equity ratio has improved, showing a stronger equity position relative to total assets. The company still faces high leverage, which could pose risks if not managed carefully.55
Neutral
Cash Flow
Bloom Energy has shown a substantial improvement in free cash flow, turning from negative in 2023 to positive in 2024. The operating cash flow to net income ratio is positive, indicating that operating cash flows are covering net losses, which is a positive sign. The company has managed to improve its cash flow position, which is crucial for ongoing operations and debt servicing.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.47B | 1.33B | 1.20B | 972.18M | 794.25M | Gross Profit |
| 404.65M | 197.79M | 148.29M | 197.58M | 165.79M | EBIT |
| 22.91M | -208.91M | -260.99M | -114.50M | -80.78M | EBITDA |
| 22.91M | -135.13M | -198.89M | -60.14M | -42.44M | Net Income Common Stockholders |
| -29.23M | -302.12M | -315.09M | -193.37M | -179.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 802.85M | 664.59M | 348.50M | 396.04M | 246.95M | Total Assets |
| 2.66B | 2.41B | 1.95B | 1.73B | 1.45B | Total Debt |
| 1.53B | 1.45B | 1.02B | 1.12B | 913.37M | Net Debt |
| 726.92M | 790.09M | 671.10M | 726.60M | 666.43M | Total Liabilities |
| 2.07B | 1.89B | 1.57B | 1.73B | 1.31B | Stockholders Equity |
| 562.47M | 502.08M | 340.78M | -44.33M | 78.82M |
| Cash Flow | Free Cash Flow | |||
| 33.15M | -456.27M | -308.55M | -110.49M | -136.61M | Operating Cash Flow |
| 92.00M | -372.53M | -191.72M | -60.68M | -98.69M | Investing Cash Flow |
| -58.78M | -83.72M | -116.82M | -46.70M | -37.91M | Financing Cash Flow |
| 175.21M | 683.35M | 220.55M | 306.38M | 175.93M |
Bloom Energy Technical Analysis
Negative
17.24
Price Trends
23.15
Negative
23.49
Negative
17.50
Negative
Market Momentum
-0.77
Positive
42.46
Neutral
13.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BE, the sentiment is Negative. The current price of 17.24 is below the 20-day moving average (MA) of 22.28, below the 50-day MA of 23.15, and below the 200-day MA of 17.50, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 13.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BE.
Bloom Energy Risk Analysis
Bloom Energy disclosed 57 risk factors in its most recent earnings report. Bloom Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bloom Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $1.86B | 5.23 | 25.00% | 2.37% | -12.01% | -38.33% | |
62 Neutral | $7.24B | 12.39 | 3.08% | 3.39% | 3.63% | -14.35% | |
59 Neutral | $3.83B | ― | -5.49% | ― | 10.53% | 90.76% | |
47 Neutral | $106.56M | ― | -283.03% | ― | 46.76% | 19.94% | |
45 Neutral | $94.30M | ― | -18.96% | ― | 11.09% | 0.41% | |
43 Neutral | $1.19B | ― | -90.88% | ― | -29.45% | -10.79% | |
32 Underperform | $865.61M | ― | 125.43% | ― | -4.71% | -117.58% |
* Industrials Sector Average
Performance Comparison
BE
Bloom Energy
17.24
5.36
45.12%
FCEL
Fuelcell Energy
4.39
-31.91
-87.91%
PLUG
Plug Power
1.24
-2.01
-61.85%
ATKR
Atkore International Group
54.05
-120.69
-69.07%
SKYX
SQL Technologies
0.99
-0.11
-10.00%
EOSE
Eos Energy Enterprises
3.54
2.60
276.60%
Bloom Energy Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -25.17% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Bloom Energy had a highly successful year with record revenue and profits, positive cash flow, and growth in key segments like data centers. While there are challenges related to utility partnerships and potential tariff impacts, the company's strong performance and positive outlook for 2025 indicate a robust position in the market.Highlights
Record Revenue and Profits in 2024
Bloom Energy achieved record revenue and profits for both the fourth quarter and the year 2024, with a quarterly revenue record of $572 million, up 60% from Q4 2023.
Positive Cash Flow and Operating Income
Bloom Energy turned free cash flow positive for the full year for the first time since 2019, with $92 million in cash flow from operations and non-GAAP operating profit of $108 million, up $88 million from the previous year.
Service Business Profitability
The service business achieved positive non-GAAP gross margin in all four quarters of 2024, resulting in a $4 million full year non-GAAP gross profit compared to a $33 million loss in 2023.
Double-Digit Product Cost Reductions
Bloom Energy delivered another year of double-digit product cost reductions, maintaining its tradition of achieving cost efficiencies.
Strong Growth in Data Center Segment
Bloom's sales funnel in the data center segment, driven by AI applications, is strong, diverse, and robust, with data centers expected to be a major growth engine.
Positive Outlook for 2025
Bloom Energy expects revenue growth in 2025, with guidance set at $1.65 billion to $1.85 billion and continued positive cash flow from operations.
Lowlights
Challenges with Utility Partnerships
Utilities face challenges in meeting the power demand driven by data centers, with concerns about passing costs to ratepayers and the need for new constructs with states.
Potential Tariff Impacts
Concerns about tariff impacts remain, although Bloom is committed to cost reduction strategies to mitigate potential headwinds.
Company Guidance
In the Bloom Energy Q4 2024 earnings call, KR Sridhar and Dan Berenbaum highlighted the company's strong performance and guidance for 2025. Bloom Energy achieved record revenue of $1.47 billion in 2024, a 10.5% increase from 2023. The company also attained a non-GAAP gross margin of 28.7% and non-GAAP operating profit of $108 million, marking significant improvements over the previous year. In 2024, Bloom turned free cash flow positive for the first time since 2019, with $92 million in cash flow from operations, driven by double-digit product cost reductions and enhanced service profitability. For 2025, Bloom projects revenue between $1.65 billion to $1.85 billion, with a non-GAAP gross margin of approximately 29% and non-GAAP operating income of around $150 million. The company's $2.5 billion product backlog and $9 billion service backlog reflect strong demand across commercial and industrial markets, bolstered by a strategic emphasis on AI-driven data centers. Bloom's Safe Harbor provision facilitates access to investment tax credits, potentially generating $12 billion to $15 billion in gross product revenue by 2028.Bloom Energy Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Bloom Energy Revamps Leadership Equity Awards Strategy
Neutral
Dec 20, 2024
Bloom Energy’s Board of Directors has decided to cancel 1,150,000 performance-based stock units from the equity package previously awarded to Dr. Sridhar, aligning with the company’s updated strategic priorities. In place of the 2021 PSUs, a new equity package has been approved, offering Dr. Sridhar a front-loaded three-year equity award and a one-time grant, aimed at incentivizing performance aligned with the company’s goals and retaining his leadership through 2027.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.