Is Clean Energy Fuels Stock a Buy?

Renewable energy companies will have an increasingly bigger role in meeting the world's energy needs as it transitions away from fossil fuels. Based on this, almost all renewable energy companies are getting increasing investor support. The share price of renewable natural gas seller Clean Energy Fuels (NASDAQ: CLNE) has zoomed upward by nearly 325% in just the last three months. Some recent developments have made investors more excited about the company's prospects. Let's see if Clean Energy Fuels stock is a buy at current levels.

Clean Energy Fuels primarily sells liquefied natural gas, compressed natural gas, and renewable natural gas through its own chain of fueling stations as well as through customer-owned stations. Renewable natural gas is derived from organic waste at landfills, wastewater treatment facilities, and other places that collect decomposing organic matter. The company does not produce natural or renewable natural gas itself. Instead, it purchases it from third-party suppliers. Roughly 60% of all the natural gas that Clean Energy Fuels supplies comes from renewable sources.

While the company's gas volumes have grown over the years, the same can't be said about its revenue and profits.

Source Fool.com