BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F Annual Dividend Rate BUSINESS DESCRIPTION Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The company supplies compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG) for light, medium, and heavy-duty vehicles. STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change -19.53-38.98-23.83 GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues -15.70-15.72-2.48 Net Income -645.49 6.03 EPS -520.00 38.34 RETURN ON EQUITY (%) Ind Avg S&P 500 Q3 2017-12.37 12.67 13.41 Q3 2016-13.25-4.03 11.79 Q3 2015-23.91 6.44 12.91 SDAQ: SELL Sector: Energy Sub-Industry: Oil & Gas Refining & Marketing Source: S&P SELL RATING SINCE 06/14/2012 Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years Rating History SELL Volume in Millions 2016 2017 COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History 5.00 4.50 4.00 3.50 3.00 2.50 2.00 30 20 10 0 P/E COMPARISON n/m EPS ALYSIS¹ ($) Q1-0.34 Q2-0.33 Q3-0.25 2015 Q4-0.54 Q1 0.03 233.52 Ind Avg Q2 0.01 Q3-0.10 2016 = not available NM = not meaningful Q4-0.03 Q1 0.40 25.50 S&P 500 Q2-0.12 Q3-0.62 2017 1 Compustat fiscal year convention is used for all fundamental data items. RECOMMENDATION We rate () a SELL. This is driven by multiple nesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's nesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. HIGHLIGHTS The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 645.5% when compared to the same quarter one year ago, falling from -$12.63 million to -$94.14 million. The gross profit margin for is currently extremely low, coming in at 10.35%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -115.09% is significantly below that of the industry average. Net operating cash flow has significantly decreased to $0.44 million or 97.33% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.98%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 520.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, continued to lose money by earning -$0.09 versus -$1.46 in the prior year. For the next year, the market is expecting a contraction of 388.9% in earnings (-$0.44 versus -$0.09). Report Date: PAGE 1
SDAQ: PEER GROUP ALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -20% 140% AMRS UNFAVORABLE -100% EBITDA Margin (TTM) FAVORABLE EMES VTNR PARR GPRE REGI AE PEIX REX 20% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $27.8 Million and $932.1 Million. Companies with or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -20% 140% AMRS UNFAVORABLE -180% Earnings Yield (TTM) VTNR FAVORABLE EMES PARR GPRECLMT REGI AE REX PEIX 20% Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -15.7% and 133.2%. Companies with or NM values do not appear. INDUSTRY ALYSIS The Oil, Gas & Consumable Fuels industry is cyclical in nature and is one of the most important globally because it touches so many others. It is broken down into its component parts by the nature of activity performed. Upstream activities are related to finding and producing commodities; midstream refers to the transportation of product from the wellhead to intermediate customers; and, downstream includes the refining, transformation and marketing of related products. Coal producers are integrated, much like the players in alternative fuels like uranium. Some of the largest players in the industry are the integrated oil & gas producers (aka Big Oil). Close to two-thirds of the world s energyneeds are satisfied by hydrocarbons (crude oil and natural gas). Althoughconservation, increased efficiency and substitutes are gaining in prominence,they are not likely to significantly reduce this dependence in the near future.crude oil prices have moderated at present due to lagging economies and newsupplies coming online. In 2004, West Texas Intermediate (WTI) crude oil brokeout of its historic trading range of $10 to $40 per barrel on a steady climb tomore than $145 per barrel in June 2008 before crashing to under $40 by the endof 2008. Since then the price of spot crude has climbed back near the $90 to$110 range before falling again. Natural gas prices, responding to excesssupply, have retreated to the $2 to $4 range per million BTU (British thermalunit). Coal prices are dependent on the energy content of the type of coalconsidered and its location, but it, too, has climbed significantly over thepast few years. Following nearly 20 years of underinvestment,the supply of crude oil is now keeping pace with slackening demand. Longer term demandshould grow at about 1.8% per year, meaning it is expected to grow more than40% over the next 20 years. Natural gas demand is expected to rise over time,according to the American Petroleum Institute, as its cleaner-burningproperties increase in value for industry. Coal consumption is projected togrow at about 1.7% per year over the next 20 years, based on US EnergyInformation Administration forecasts. Analysis of companies in this industry beginsby forming a view of the global economy and geopolitics, which is combined witha supply and demand analysis that leads to commodity price forecasts. At theindividual firm level, how efficiently a company operates goes a long way indetermining its profitability. Supply management is an important factor, too,as high commodity prices are affected by how much supply the industry as awhole produces. Geographic positioning can also be important, as regionaleconomic cycles may not synch up well with each other. The so-called supermajor integrated oilcompanies include Exxon Mobil (XOM), BP Plc (BP), Chevron (CVX), Total SA(TOT), and ConocoPhillips (COP). Some of the other major Exploration &Production firms include Anadarko Petroleum (APC), DevonEnergy (DVN) and Apache (APA). On the Refining & Marketing level, majorplayers include Valero Energy (VLO), Sunoco (SUN), and Tesoro (TSO). The majoruranium producer is Cameco (CCJ). PEER GROUP: Oil, Gas & Consumable Fuels Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) 2.02 305 NM 354.13-54.77 PARR PAR PACIFIC HOLDINGS INC 20.36 932 14.14 2,343.14 67.30 GPRE GREEN PLAINS INC 16.60 683 23.38 3,607.28 33.11 CLMT CALUMET SPECIALTY PRODS -LP 7.88 605 3,946.10-76.20 REX REX AMERICAN RESOURCES CORP 84.19 553 16.77 464.64 33.03 REGI RENEWABLE ENERGY GROUP INC 10.90 423 NM 2,141.40-41.90 VTNR VERTEX ENERGY INC 0.85 28 NM 135.21-10.45 EMES EMERGE ENERGY SERVICES LP 7.47 225 NM 303.78-33.23 AE ADAMS RESOURCES & ENERGY IN 49.72 210 NM 1,212.57-4.34 PEIX PACIFIC ETHANOL INC 4.45 196 NM 1,678.70-8.60 AMRS AMYRIS INC 3.49 150 NM 85.10-119.37 The peer group comparison is based on Major Oil & Gas Refining & Marketing companies of comparable size. Report Date: PAGE 2
SDAQ: Annual Dividend Rate COMPANY DESCRIPTION Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The company supplies compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG) for light, medium, and heavy-duty vehicles. It also designs, builds, operates, and maintains fueling stations. In addition, the company manufactures, sells, and services non-lubricated natural gas fueling compressors and other equipment used in CNG and LNG stations; provides assessment, design, and modification solutions to operators with code-compliant service and maintenance facilities for natural gas vehicle fleets; transports and sells CNG and LNG to industrial and institutional energy users; and processes and sells RNG, which is used as vehicle fuel. Further, it sells tradable credits comprising natural gas and RNG as a vehicle fuel, such as Low Carbon Fuel Standards and Renewable Identification Numbers Credits; and helps its customers in acquiring and financing natural gas vehicles, as well as obtaining federal, state and local credits, grants, and incentives. The company serves heavy-duty trucking, airport, refuse, and public transit markets; and industrial and institutional energy users, as well as government fleets. As of December 31, 2016, it served approximately 1,000 fleet customers operating approximately 45,000 natural gas vehicles; and owned, operated, or supplied approximately 570 natural gas fueling stations in 42 states in the United States and in 4 provinces in Canada. Clean Energy Fuels Corp. was incorporated in 2001 and is headquartered in Newport Beach, California. 4675 MacArthur Court, Suite 800 Newport Beach, CA 92660 USA Phone: 949-437-1000 Fax: 949-724-1397 http://www.cleanenergyfuels.com Employees: 1000 STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 1.0 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, has a growth score better than 10% of the stocks we rate. Total Return 0.5 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company ranks at the bottom of the companies we cover. Efficiency 1.0 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 10% of the companies we review. Price volatility 1.0 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 10% of the stocks we monitor. Solvency 0.5 out of 5 stars Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze. Income 0.5 out of 5 stars Measures dividend yield and payouts to shareholders. This company pays no dividends. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. Report Date: PAGE 3
SDAQ: Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial -0.11-0.44 E -0.28 E FINCIAL ALYSIS 's gross profit margin for the third quarter of its fiscal year 2017 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. is extremely liquid. Currently, the Quick Ratio is 2.93 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year. Q4 FY17 2017(E) 2018(E) During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future. INCOME STATEMENT Net Sales ($mil) 81.79 97.02 EBITDA ($mil) -16.33 9.25 EBIT ($mil) -30.44-5.56 Net Income ($mil) -94.14-12.63 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.thestreetratings.com. BALANCE SHEET Cash & Equiv. ($mil) 198.30 123.50 Total Assets ($mil) 798.52 911.35 Total Debt ($mil) 254.84 352.62 Equity ($mil) 442.56 439.57 PROFITABILITY Gross Profit Margin 10.35% 36.24% EBITDA Margin -19.96% 9.52% Operating Margin -37.21% -5.73% Sales Turnover 0.44 0.46 Return on Assets -6.85% -6.39% Return on Equity -12.37% -13.25% DEBT Current Ratio 3.52 2.97 Debt/Capital 0.37 0.45 Interest Expense 4.27 6.41 Interest Coverage -7.13-0.87 SHARE DATA Shares outstanding (mil) 151 134 Div / share 0.00 0.00 EPS -0.62-0.10 Book value / share 2.93 3.27 Institutional Own % Avg Daily Volume 997,428 1,140,517 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. Report Date: PAGE 4
SDAQ: RATINGS HISTORY Our rating for has not changed since 6/14/2012. As of 12/14/2017, the stock was trading at a price of which is 41.3% below its 52-week high of $3.44 and 3.1% above its 52-week low of $1.96. 2 Year Chart SELL: $3.60 2016 $5.00 $4.00 $3.00 MOST RECENT RATINGS CHANGES Date Price Action From To 12/14/15 $3.60 No Change Sell Sell Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 12/14/2017) 44.62% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months. 30.32% Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss. 25.06% Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY 10005 www.thestreet.com Research Contact: 212-321-5381 Sales Contact: 866-321-8726 VALUATION SELL. This stock s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.69 indicates a significant discount versus the S&P 500 average of 3.24 and a significant discount versus the industry average of 5.10. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, proves to trade at a discount to investment alternatives within the industry. Price/Earnings NM Peers 233.52 Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. 's P/E is negative making this valuation measure meaningless. Price/Projected Earnings NM Peers 30.79 Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. 's ratio is negative making this valuation measure meaningless. Price/Book 0.69 Peers 5.10 Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. is trading at a significant discount to its peers. Price/Sales 0.86 Peers 2.12 Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. is trading at a significant discount to its industry on this measurement. DISCLAIMER: Price/CashFlow NM Peers 9.88 Neutral. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. 's P/CF is negative making the measure meaningless. Price to Earnings/Growth Peers 1.05 Neutral. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. Earnings Growth lower higher 38.34 Peers 152.89 Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, is expected to significantly trail its peers on the basis of its earnings growth rate. Sales Growth lower higher -15.72 Peers 26.93 Lower. A sales growth rate that trails the industry implies that a company is losing market share. significantly trails its peers on the basis of sales growth The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at http://www.thestreet.com/static/about/terms-of-use.html. Report Date: PAGE 5