Cvr Energy Inc (NYSE: CVI)

Sector: Energy Industry: Oil & Gas Refining & Marketing CIK: 0001376139
Market Cap 2.28 Bn
P/B 2.71
P/E 13.73
P/S 0.31
ROIC (Qtr) 9.72
Div Yield % 0.00
Rev 1y % (Qtr) 6.06
Total Debt (Qtr) 1.83 Bn
Debt/Equity (Qtr) 2.18
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About

CVR Energy Inc., a diversified holding company, operates in the petroleum refining and marketing industry through its Petroleum Segment, and in the nitrogen fertilizer manufacturing industry through its Nitrogen Fertilizer Segment. The company is publicly traded on the New York Stock Exchange under the ticker symbol CVI. CVR Energy's main business activities involve refining and marketing petroleum products, as well as manufacturing nitrogen fertilizers. The company operates in the United States, with refineries located in Coffeyville, Kansas,...

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Investment thesis

Bull case

  • Strong operating cash flow of 242M provides 1.60x coverage of SG&A expenses 151M, showing efficient operational cost management.
  • Tangible assets of 3.99B provide robust 12.55x coverage of other current liabilities 318M, indicating strong asset backing.
  • Robust tangible asset base of 3.99B provides 5.52x coverage of working capital 723M, indicating strong operational backing.
  • Strong cash position of 670M provides 2.11x coverage of other current liabilities 318M, indicating excellent liquidity.
  • Cash reserves of 670M provide robust 0.89x coverage of current liabilities 755M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of 242M barely covers its investment activities of (266M), with a coverage ratio of -0.91, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (146M) provides weak coverage of capital expenditures of 388M, with a -0.38 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 242M provides minimal -16.13x coverage of tax expenses of (15M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 252M show weak coverage of depreciation charges of 332M, with a 0.76 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (146M) represents just -0.63x of debt issuance 233M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2024)

Segments 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 0.88 0.76
EV to Cash from Ops. EV/CFO 14.60 8.58
EV to Debt EV to Debt 1.93 2.22
EV to EBIT EV/EBIT 14.02 10.87
EV to EBITDA EV/EBITDA 5.60 9.19
EV to Free Cash Flow [EV/FCF] EV/FCF -24.19 10.02
EV to Market Cap EV to Market Cap 1.55 1.76
EV to Revenue EV/Rev 0.48 0.77
Price to Book Value [P/B] P/B 2.71 6.86
Price to Earnings [P/E] P/E 13.73 34.12
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.72
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 28.49
Dividend per Basic Share Div per Share (Qtr) 0.00 1.75
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -37.85
Interest Coverage Int. cover (Qtr) 2.50 1.50
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -69.43 -33.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 25.47 150.03
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 114.60 -40.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 36.88 451.72
EBIT Growth (1y) % EBIT 1y % (Qtr) 77.46 -35.27
EBT Growth (1y) % EBT 1y % (Qtr) 96.10 -53.20
EPS Growth (1y) % EPS 1y % (Qtr) 137.68 -26.82
FCF Growth (1y) % FCF 1y % (Qtr) -456.10 12.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 50.65 31.60
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.83 2.36
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.42
Cash Ratio Cash Ratio (Qtr) 0.89 0.39
Current Ratio Curr Ratio (Qtr) 1.96 1.41
Debt to Equity Ratio Debt/Equity (Qtr) 2.18 10.15
Interest Cover Ratio Int Coverage (Qtr) 2.50 1.50
Times Interest Earned Times Interest Earned (Qtr) 2.50 1.50
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.00 6.34
EBIT Margin % EBIT Margin % (Qtr) 3.45 1.61
EBT Margin % EBT Margin % (Qtr) 2.07 -2.36
Gross Margin % Gross Margin % (Qtr) 6.30 12.04
Net Profit Margin % Net Margin % (Qtr) 2.30 -3.21