Bloom Energy – Growth rate accelerates

Bloom Boxes at the SK Group , © Bloom
Bloom Boxes at the SK Group , © Bloom

What an outstanding view K. R. Sridhar, CEO of Bloom Energy, describes: Bloom is on track to achieve annual growth of up to 35 percent instead of the previous 25 to 30 percent, as the company is optimally positioned – technologically and in terms of business model – in H2 energy markets around the world.

The stock market also sees it this way. This quarter, the share price went from under 14 USD to over 22 USD, so it can be said that the value will reach 24 USD within the beginning of this year, although it was already at 44 USD at the beginning of 2021. What is clear now, however, is that we are dealing with a price turnaround, which will be based off new forecasts and pushed by the very high (crisis-related) prices for natural gas and oil. Short sellers will have a harder time of it, as they were certainly involved in driving the price down so much in the first place. In the beginning of March 2022, over 18 million shares were sold short. At the end of 2021, it was under 14 million.

HOC

On track with company figures

The figures for the fourth quarter of 2021 came out better than expected: 342.5 million USD turnover, an increase of 37.3 percent from the fourth quarter of 2020. The bottom line, (non-GAAP) a net loss of 0.05 USD/share in the last quarter of the year – minus 0.19 USD/share (GAAP). Note that the last figure takes stock-based compensation into account, so shares that were bonuses for employees are included in the mathematical result.

Turnover reached 970 million USD and is expected to rise to 1.1 to 1.2 billion USD this year. Current orders total 8.5 billion USD. In the bank lies around 615 million USD, 250 million of which I think will flow into the second tranche of Bloom’s work with SK ecoplant in the course of the year. Word is that they are well on the way to generating a positive cash flow from now on until the end of the year – the fourth quarter of 2021 already indicated this. The transition to profitability is therefore only a matter of time and could see its start in 2022.

From 4 to 20 billion USD turnover in 10 years

Bloom Energy has the target turnover of a good 4 to 5 billion USD in 5 five years, and 15 to 20 in 10 years, according to the CEO and company founder K. R. Sridhar. Those are the ranges of turnover size, minimum and maximum, Bloom predicts. In its view, the company is – in a way – in a leadership role, whether through the technology or the business model. They have reached a very positive “exciting inflection point” and are preparing for very high long-term growth.

“Yes, I said 15 Billion US-$ or greater. In many ways as the industry transforms, we are in a category of our own with growing revenue, margin expansion, strong backlog, and the best most innovative solutions to customers who want a low carbon and resillient power today and zero emissions energy tommorrow.”

K. R. Sridhar, CEO Bloom Energy

This will involve high investments in proprietary technologies, expansion of production capacities, cost control and margin widening. In addition, top talent was recruited for the management.[…]

… Read this article to the end in the latest H2-International

Warning 

Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here. 

Author: Sven Jösting, written March 15th, 2022 

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