Bloom Energy Corp (BE) Stock Analysis
Bloom Energy Corp (BE) Stock Analysis
Overall Grade: F (Concerning)
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Bloom Energy Corp faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 3.8% | Below expectations |
| FCF Margin | 2.8% | Cash flow pressure |
| Debt/Equity | 3.4x | Elevated debt |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is Bloom Energy Corp's Profitability and ROIC?
Bloom Energy Corp's return on invested capital of 3.8% is below the typical cost of capital. Gross margin of 29.0% with operating margin at 3.6% reflects the company's moderate market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.8% | Red flag | Below cost of capital |
| Return on Equity (ROE) | -14.0% | Red flag | Moderate equity returns |
| Gross Margin | 29.0% | Adequate | Competitive pricing environment |
| Operating Margin | 3.6% | Warning | Moderate operational efficiency |
How Strong is Bloom Energy Corp's Cash Flow Quality?
Bloom Energy Corp generated $57.1M in free cash flow over the trailing twelve months, representing a 2.8% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 2.8% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $57.1M | Good | Positive cash generation |
| OCF/Net Income | -1.3x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is Bloom Energy Corp's Financial Health?
Bloom Energy Corp's debt-to-equity ratio of 3.4x indicates elevated leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 3.4x | Red flag | Elevated leverage |
| Net Cash Position | $-140.5M | Adequate | Net debt position |
Is Bloom Energy Corp Stock Overvalued or Undervalued?
Bloom Energy Corp trades at a P/E of 0.3x, representing a premium to the sector median of N/A. Free cash flow yield of 0.3% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 0.3x | Adequate | Reasonable valuation |
| EV/Sales | 10.5x | Warning | Growth premium priced in |
| FCF Yield | 0.3% | Warning | Lower cash yield |
| Dividend Yield | 0.0% | Adequate | Growth focus over income |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.8% | Bottom 50% | 0.6x below |
| Free Cash Flow Margin | 2.8% | Bottom 50% | 0.3x below |
| Gross Margin | 29.0% | Bottom 25% | 0.5x below |
| Operating Margin | 3.6% | Bottom 50% | 0.6x below |
| Return on Equity (ROE) | -14.0% | Bottom 50% | -2.2x below |
| P/E Ratio | 0.3x | N/A | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 3.8% (Red flag - Bottom 50% of sector (median: 6.5%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 2.8% (Warning - Bottom 50% of sector (median: 10.0%))
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 29.0% (Adequate - Bottom 25% of sector (median: 52.9%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 341.1% (Red flag)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 31.1% (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 0.3% (Red flag)
Frequently Asked Questions
Q: What is Bloom Energy Corp's Return on Invested Capital (ROIC)?
Bloom Energy Corp (BE) has a trailing twelve-month Return on Invested Capital (ROIC) of 3.8%. This compares below the sector median of 6.5%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Bloom Energy Corp's Free Cash Flow Margin?
Bloom Energy Corp (BE) has a free cash flow margin of 2.8%, generating $57.1 million in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is Bloom Energy Corp stock overvalued or undervalued?
Bloom Energy Corp (BE) trades at a P/E ratio of 0.3x, which is above the sector median of N/A. The EV/Sales multiple is 10.5x. Free cash flow yield is 0.3%, reflecting growth expectations priced into the stock.
Q: Does Bloom Energy Corp pay a dividend?
Bloom Energy Corp (BE) currently pays a dividend yield of 0.0%. Including share buybacks, the total shareholder yield is 0.0%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does Bloom Energy Corp have?
Bloom Energy Corp (BE) has a debt-to-equity ratio of 3.4x with total debt of $2.6 billion. Net debt position is $140.5 million.
Q: What is Bloom Energy Corp's revenue and earnings growth?
Bloom Energy Corp (BE) grew revenue by 37.3% year-over-year. Earnings per share decreased by 47.2% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does Bloom Energy Corp compare to competitors in Technology?
Compared to other companies in Technology, Bloom Energy Corp (BE) shows: ROIC of 3.8% is below the sector median of 6.5% (Bottom 43%). FCF margin of 2.8% trails the sector median of 10.0% (Bottom 32% of sector). Gross margin at 29.0% is 23.9 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Bloom Energy Corp?
Investors in Bloom Energy Corp (BE) should monitor these potential warning signs: 1) FCF margin is thin at 2.8%, leaving limited buffer for economic downturns. 2) Debt-to-equity of 3.4x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.