Bloom Energy – Current Market Value a Good Opportunity

Bloom
Bloom combines individual cells and stacks into large hybrid multi-MW solutions, © Bloom Energy

Bloom Energy (Nasdaq: BE), a manufacturer of fuel cell systems, is a new one for me to discuss on these pages. The company went public in July 2018, and after issuing shares at a price of USD 25 each, it went on to reach a market cap of above USD 3 billion, though it is valued at less than half of its IPO price today. It posted revenues of USD 742 million for 2018 and expects a steady 20 percent growth per year in the near-term future.

The core business of Bloom is to supply companies, and especially large corporations, such as IKEA, with fuel cell power plants, so that they can power equipment independent of utility contracts. Its business model is similar to that of FuelCell Energy, although the latter will sometimes connect systems to those of large utilities. Bloom, on the other hand, specializes in entirely energy independent fuel cell installations.

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Risk warning

Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small and mid-cap ones, i.e., they may experience high stock volatility. This article is not to be taken as a recommendation of what shares to buy or sell – it comes without any explicit or implicit guarantee or warranty. All information is based on publicly available sources and the content of this article reflects the author’s opinion only. This article focuses on mid-term and long-term prospects and not short-term profit. The author may own shares in any of the companies mentioned in it.

Written by Sven Jösting

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