CrossAmerica Partners LP (NYSE: CAPL)

Sector: Energy Industry: Oil & Gas Refining & Marketing CIK: 0001538849
Market Cap 861.63 Mn
P/B 68.69
P/E 18.81
P/S 0.23
ROIC (Qtr) 10.91
Div Yield % 5.65
Rev 1y % (Qtr) -9.94
Total Debt (Qtr) 833.33 Mn
Debt/Equity (Qtr) -9.08
Add ratio to table...

About

CrossAmerica Partners LP (CAPL), a company listed on the New York Stock Exchange under the symbol CAPL, operates in the wholesale distribution of motor fuel and the ownership and leasing of real estate used in the retail distribution of motor fuel. The company's business model is rooted in the supply of motor fuel to lessee dealers and independent dealers, as well as the retail sale of motor fuel and convenience merchandise items at company-operated sites and commission sites. CAPL's operations span across the United States, with a network of approximately...

Read more

Investment thesis

Bull case

  • Operating cash flow of 73.17M provides strong 42.37x coverage of stock compensation 1.73M, indicating sustainable incentive practices.
  • Tangible assets of 834.43M provide robust 17.45x coverage of other current liabilities 47.81M, indicating strong asset backing.
  • Operating cash flow of 73.17M provides strong 2.06x coverage of operating expenses 35.45M, showing operational efficiency.
  • Operating cash flow of 73.17M provides strong 3.06x coverage of tax liabilities 23.90M, showing excellent fiscal position.
  • Tangible assets of 834.43M provide robust 5.08x coverage of current liabilities 164.21M, showing strong asset backing.

Bear case

  • Operating cash flow of 73.17M barely covers its investment activities of 76.48M, with a coverage ratio of 0.96, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 5.77M against inventory of 60.97M, the 0.09 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 73.17M provides thin coverage of dividend payments of (79.97M) with a -0.92 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 100.51M show weak coverage of depreciation charges of 87.75M, with a 1.15 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of (151.65M) relative to working capital of (46.86M), which is 3.24x suggests concerning dependence on external funding for operational needs.

Product and Service Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Refining & Marketing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MPC Marathon Petroleum Corp 142.92 Bn 53.05 1.86 34.20 Bn
2 VLO Valero Energy Corp/Tx 79.27 Bn 8.41 0.46 10.58 Bn
3 PSX Phillips 66 70.22 Bn 27.51 0.54 21.76 Bn
4 SUN Sunoco LP 5.94 Bn 11.81 0.45 10.07 Bn
5 DINO HF Sinclair Corp 5.65 Bn 289.25 1.17 3.16 Bn
6 PBF PBF Energy Inc. 3.87 Bn -24.43 0.13 2.90 Bn
7 DK Delek US Holdings, Inc. 2.42 Bn 7.69 0.13 3.59 Bn
8 CVI Cvr Energy Inc 2.28 Bn 13.73 0.31 1.83 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.71 0.76
EV to Cash from Ops. EV/CFO 23.33 8.58
EV to Debt EV to Debt 2.05 2.22
EV to EBIT EV/EBIT 16.99 10.87
EV to EBITDA EV/EBITDA 9.10 9.19
EV to Free Cash Flow [EV/FCF] EV/FCF 45.73 10.02
EV to Market Cap EV to Market Cap 1.98 1.76
EV to Revenue EV/Rev 0.46 0.77
Price to Book Value [P/B] P/B 68.69 6.86
Price to Earnings [P/E] P/E 18.81 34.12
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.55 -0.72
Dividend Payout Ratio % Div Payout % (Qtr) 175.00 28.49
Dividend per Basic Share Div per Share (Qtr) 1.58 1.75
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 160.88 -37.85
Interest Coverage Int. cover (Qtr) 1.99 1.50
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -11.74 -33.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -25.74 150.03
Dividend Growth (1y) % Div 1y % (Qtr) -25.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 28.59 -40.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 28.51 451.72
EBIT Growth (1y) % EBIT 1y % (Qtr) 43.62 -35.27
EBT Growth (1y) % EBT 1y % (Qtr) 142.53 -53.20
EPS Growth (1y) % EPS 1y % (Qtr) 126.42 -26.82
FCF Growth (1y) % FCF 1y % (Qtr) -54.85 12.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.71 31.60
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 3.74 2.36
Cash Payout Ratio Cash Payout (Qtr) 0.75 0.42
Cash Ratio Cash Ratio (Qtr) 0.04 0.39
Current Ratio Curr Ratio (Qtr) 0.72 1.41
Debt to Equity Ratio Debt/Equity (Qtr) -9.08 10.15
Interest Cover Ratio Int Coverage (Qtr) 1.99 1.50
Times Interest Earned Times Interest Earned (Qtr) 1.99 1.50
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.00 6.34
EBIT Margin % EBIT Margin % (Qtr) 2.69 1.61
EBT Margin % EBT Margin % (Qtr) 1.33 -2.36
Gross Margin % Gross Margin % (Qtr) 10.60 12.04
Net Profit Margin % Net Margin % (Qtr) 1.20 -3.21