Last Updated: 08 Nov 2024
Executive Summary
CVR Energy Inc. (CVI) is a petroleum refining and nitrogen fertilizer manufacturing company headquartered in Sugar Land, Texas. The company's stock is currently trading at $16.52. CVI has a market capitalization of $1.74 billion and an enterprise value of $2.91 billion. The company's trailing P/E ratio is 25.13, and its forward P/E ratio is 19.53. CVI's dividend yield is 0.115%.
Company Overview
CVR Energy is engaged in the refining of crude oil and the production of nitrogen fertilizers. The company's refining operations are located in Coffeyville, Kansas, and Wynnewood, Oklahoma. CVI's nitrogen fertilizer operations are located in Coffeyville, Kansas, and East Dubuque, Illinois.
Fundamental Analysis
CVI's financial performance has been mixed in recent years. The company's revenue has declined in each of the past three years. In 2023, CVI's revenue was $7.87 billion, down from $8.11 billion in 2022. The company's net income also declined in 2023, from $313 million to $269 million.
Despite the decline in revenue and net income, CVI's profitability metrics have improved in recent years. The company's gross profit margin has increased from 17.5% in 2021 to 18.1% in 2023. CVI's operating margin has also improved, from -6.7% in 2021 to -6.2% in 2023.
CVI's balance sheet is relatively strong. The company has $1.2 billion in cash and equivalents and $2.9 billion in total debt. CVI's debt-to-equity ratio is 1.19, which is below the industry average.
Technical Analysis
CVI's stock price has been in a downtrend since early 2023. The stock price fell from a high of $36.71 in January 2023 to a low of $15.60 in June 2023. The stock price has since rebounded to $16.52.
CVI's technical indicators are mixed. The stock's relative strength index (RSI) is 50, which is neutral. The stock's moving average convergence divergence (MACD) indicator is below zero, which is bearish.
Short Term Outlook
CVI's stock price is likely to remain range-bound in the short term. The stock's technical indicators are mixed, and the company's financial performance has been mixed in recent years.
Long Term Outlook
CVI's long-term outlook is positive. The company's refining and fertilizer operations are well-positioned to benefit from the growing demand for energy and food. CVI's balance sheet is also relatively strong, which gives the company the financial flexibility to invest in growth opportunities.
Analyst Recommendations
Analysts are divided on CVI's stock. Three analysts have a hold rating on the stock, three analysts have a sell rating, and one analyst has a strong sell rating. The average analyst target price for CVI is $20.40.
