Bloom Energy (BE) AI Stock Analysis

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Bloom Energy

(NYSE:BE)

56Neutral

Bloom Energy demonstrates a strong financial trajectory with revenue growth and improved cash flow, but it struggles with profitability and high leverage. The technical indicators suggest a bearish trend, while the valuation metrics are unattractive due to negative earnings. However, the positive earnings call with a strong outlook for 2025 provides a boost to the overall score.

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.

Long-term Business Prospects

There is optimism for Bloom Energy's long-term business due to the meaningful safe harbor coverage that customers can use until the end of 2028.

Market Demand

Bloom Energy is the most underappreciated beneficiary of growing power demand in the US and the accompanying need for distributed power generation solutions.

Negative Factors

Increased Operational Costs

Adding to Salesforce Drives Opex Higher. We estimate cash opex in 2025 of $361MM, which compares to 2024 cash opex of $317MM. The increase is primarily driven by assumed additions of experienced sales professionals to BE's sales organization.

Project Timing and Transparency

Challenges in timing projects make predicting Bloom's quarterly performance difficult, especially with some larger data center wins potentially moving to a later year.

Tariff Concerns

Potential tariff impacts, particularly on imported steel, pose a downside risk for Bloom Energy, even though the company manufactures all its finished products domestically with a China-free supply chain.

Bloom Energy (BE) vs. S&P 500 (SPY)

Market Cap

$3.89B

Dividend YieldN/A

Average Volume (3M)6.60M

Price to Earnings (P/E)―

Beta (1Y)2.06

Revenue Growth10.53%

EPS Growth90.76%

CountryUS

Employees2,127

SectorIndustrials

Sector Strength66

IndustryElectrical Equipment & Parts

Share Statistics

EPS (TTM)-0.23

Shares Outstanding230,507,500

10 Day Avg. Volume6,584,376

30 Day Avg. Volume6,596,925

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

$24.00

Price Target Upside39.05% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering19

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

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price17.26

Price Trends

50DMA

21.81

Negative

100DMA

23.18

Negative

200DMA

17.77

Negative

Market Momentum

MACD

-1.49

Negative

RSI

39.67

Neutral

STOCH

40.73

Neutral

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 17.26 is below the 20-day moving average (MA) of 18.54, below the 50-day MA of 21.81, and below the 200-day MA of 17.77, indicating a bearish trend. The MACD of -1.49 indicates Negative momentum. The RSI at 39.67 is Neutral, neither overbought nor oversold. The STOCH value of 40.73 is Neutral, 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATKR	66 Neutral	$2.16B	6.07	25.00%	2.04%	-12.01%	-38.33%
Sector *	63 Neutral	$4.14B	11.23	5.47%	215.40%	4.10%	-8.63%
BE	56 Neutral	$3.89B	―	-5.49%	―	10.53%	90.76%
SKYX	49 Neutral	$112.83M	―	-283.03%	―	46.76%	19.94%
PLUG	45 Neutral	$849.93M	―	-90.88%	―	-29.45%	-10.79%
FCEL	42 Neutral	$78.87M	―	-18.96%	―	11.09%	0.41%
EOSE	33 Underperform	$1.05B	―	125.43%	―	-4.71%	-117.58%

* Industrials Sector Average

Performance Comparison

Bloom Energy

18.14

8.59

89.95%

FCEL

Fuelcell Energy

3.85

-21.41

-84.76%

PLUG

Plug Power

0.84

-1.54

-64.71%

ATKR

Atkore International Group

64.50

-114.30

-63.93%

SKYX

SQL Technologies

1.00

0.17

20.48%

EOSE

Eos Energy Enterprises

4.86

4.11

548.00%

Bloom Energy Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -25.09% | Next Earnings Date: Apr 30, 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.