Bloom Energy currently trades at $205.07 and has been a dream stock for shareholders. It’s returned 912% since July 2021, blowing past the S&P 500’s 77.6% gain. The company has also beaten the index over the past six months as its stock price is up 35.1% thanks to its solid quarterly results.
Is now still a good time to buy BE? Or are investors being too optimistic? Find out in our full research report, it’s free.
Why Is BE a Good Business?
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Bloom Energy grew its sales at an incredible 24.1% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers.
2. Increasing Free Cash Flow Margin Juices Financials
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, Bloom Energy’s margin expanded by 21.6 percentage points over the last five years. Bloom Energy’s free cash flow margin for the trailing 12 months was 9.4%.
3. New Investments Bear Fruit as ROIC Jumps
We like to invest in businesses with high returns, but the trend in a company’s ROIC can also be an early indicator of future business quality.
Over the last few years, Bloom Energy’s ROIC has increased. This is a good sign, but we recognize its lack of profitable growth during the COVID era was the primary reason for the change.
Final Judgment
These are just a few reasons why we’re bullish on Bloom Energy, and with its shares beating the market recently, the stock trades at 97.1× forward P/E (or $205.07 per share). Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More Than Bloom Energy
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Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
