Clean Energy Fuels Corp. (NASDAQ:CLNE) shareholders would be excited to see that the share price has had a great month, posting a 28% gain and recovering from prior weakness. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 19% in the last twelve months.
Even after such a large jump in price, it’s still not a stretch to say that Clean Energy Fuels’ price-to-sales (or “P/S”) ratio of 1.4x right now seems quite “middle-of-the-road” compared to the Oil and Gas industry in the United States, where the median P/S ratio is around 1.6x. Although, it’s not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
Check out our latest analysis for Clean Energy Fuels
NasdaqGS:CLNE Price to Sales Ratio vs Industry February 7th 2026 How Has Clean Energy Fuels Performed Recently?
Clean Energy Fuels could be doing better as it’s been growing revenue less than most other companies lately. It might be that many expect the uninspiring revenue performance to strengthen positively, which has kept the P/S ratio from falling. However, if this isn’t the case, investors might get caught out paying too much for the stock.
If you’d like to see what analysts are forecasting going forward, you should check out our free report on Clean Energy Fuels. What Are Revenue Growth Metrics Telling Us About The P/S?
There’s an inherent assumption that a company should be matching the industry for P/S ratios like Clean Energy Fuels’ to be considered reasonable.
Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. Regardless, revenue has managed to lift by a handy 5.9% in aggregate from three years ago, thanks to the earlier period of growth. Therefore, it’s fair to say that revenue growth has been inconsistent recently for the company.
Looking ahead now, revenue is anticipated to climb by 7.5% each year during the coming three years according to the five analysts following the company. Meanwhile, the rest of the industry is forecast to only expand by 5.3% per annum, which is noticeably less attractive.
With this in consideration, we find it intriguing that Clean Energy Fuels’ P/S is closely matching its industry peers. It may be that most investors aren’t convinced the company can achieve future growth expectations.
What We Can Learn From Clean Energy Fuels’ P/S?
Clean Energy Fuels’ stock has a lot of momentum behind it lately, which has brought its P/S level with the rest of the industry. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
We’ve established that Clean Energy Fuels currently trades on a lower than expected P/S since its forecasted revenue growth is higher than the wider industry. Perhaps uncertainty in the revenue forecasts are what’s keeping the P/S ratio consistent with the rest of the industry. At least the risk of a price drop looks to be subdued, but investors seem to think future revenue could see some volatility.
The company’s balance sheet is another key area for risk analysis. Our free balance sheet analysis for Clean Energy Fuels with six simple checks will allow you to discover any risks that could be an issue.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.