1 Green Flag and 1 Red Flag for Bloom Energy Investors
There's a lot to like about this hydrogen stock, but one factor may charge up investors to look elsewhere.
Investors in Bloom Energy (BE) have experienced a significant gain, with the company's stock up over 166% since the beginning of 2026. Despite this impressive performance, the stock's valuation remains steep. Since its inception in 2018, Bloom Energy has grown both revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA), while maintaining a solid balance sheet.
The most impressive aspect of the company's financial health is its consistent generation of free cash flow, which has been maintained on a trailing-12-month basis for over a year. This free cash flow generation is a rare occurrence among hydrogen-focused companies, which have often resorted to raising capital through substantial equity and debt issuances.
However, Bloom Energy's share price is currently trading at 347 times trailing earnings and 109 times operating cash flow. This results in a premium to its five-year average sales multiple of 3.3, at 24.3 times trailing sales. Despite the high valuation, Bloom Energy's robust revenue and earnings growth make it an attractive growth stock for those with a multi-year investing horizon.
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