Icahn Enterprises L.P. (NASDAQ: IEP)

Sector: Energy Industry: Oil & Gas Refining & Marketing CIK: 0000813762
Market Cap 952.45 Mn
P/B 0.18
P/E -5.29
P/S 0.05
ROIC (Qtr) 0.09
Div Yield % 81.35
Rev 1y % (Qtr) -2.36
Total Debt (Qtr) 8.12 Bn
Debt/Equity (Qtr) 4.17
Add ratio to table...

About

Icahn Enterprises L.P., often recognized by its stock symbols IEP and Icahn, operates as a diversified holding company with business interests spanning various industries. Established in 1987 and headquartered in Sunny Isles Beach, Florida, the company has developed a distinctive approach that involves acquiring and restructuring undervalued assets and businesses to maximize their potential. The company's primary business activities are organized through seven reporting segments: Investment, Energy, Automotive, Food Packaging, Real Estate, Home...

Read more

Investment thesis

Bull case

  • Cash reserves of 4.03B provide ample 35x coverage of acquisition spending 115M, enabling strategic growth opportunities.
  • Strong tangible asset base of 14.17B provides 123.20x coverage of acquisition spending 115M, enabling strategic growth.
  • Cash reserves of 4.03B provide comfortable 12.70x coverage of tax obligations 317M, showing strong fiscal management.
  • Cash reserves of 4.03B exceed inventory value of 892M by 4.51x, indicating strong liquidity and inventory management.
  • Strong tangible asset base of 14.17B provides 21.53x coverage of intangibles 658M, indicating robust asset quality.

Bear case

  • Operating cash flow of 352M barely covers its investment activities of (326M), with a coverage ratio of -1.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 352M provides thin coverage of dividend payments of (304M) with a -1.16 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 2.14B relative to inventory of 892M (2.40 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (205M) provides weak coverage of capital expenditures of 557M, with a -0.37 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 352M provides minimal -23.47x coverage of tax expenses of (15M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 0.58 0.76
EV to Cash from Ops. EV/CFO 37.75 8.58
EV to Debt EV to Debt 1.05 2.22
EV to EBIT EV/EBIT 14.05 10.87
EV to EBITDA EV/EBITDA 5.99 9.19
EV to Free Cash Flow [EV/FCF] EV/FCF -6.74 10.02
EV to Market Cap EV to Market Cap 8.96 1.76
EV to Revenue EV/Rev 0.46 0.77
Price to Book Value [P/B] P/B 0.18 6.86
Price to Earnings [P/E] P/E -5.29 34.12
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.26 -0.72
Dividend Payout Ratio % Div Payout % (Qtr) -253.20 28.49
Dividend per Basic Share Div per Share (Qtr) 2.00 1.75
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -560.22 -37.85
Interest Coverage Int. cover (Qtr) 0.19 1.50
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -61.92 -33.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -14.98 150.03
Dividend Growth (1y) % Div 1y % (Qtr) -50.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 115.28 -40.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 35.14 451.72
EBIT Growth (1y) % EBIT 1y % (Qtr) 126.19 -35.27
EBT Growth (1y) % EBT 1y % (Qtr) 13.96 -53.20
EPS Growth (1y) % EPS 1y % (Qtr) 24.04 -26.82
FCF Growth (1y) % FCF 1y % (Qtr) -157.10 12.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.58 31.60
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.64 2.36
Cash Payout Ratio Cash Payout (Qtr) 0.34 0.42
Cash Ratio Cash Ratio 0.00 0.39
Current Ratio Current Ratio 0.00 1.41
Debt to Equity Ratio Debt/Equity (Qtr) 4.17 10.15
Interest Cover Ratio Int Coverage (Qtr) 0.19 1.50
Times Interest Earned Times Interest Earned (Qtr) 0.19 1.50
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 6.60 6.34
EBIT Margin % EBIT Margin % (Qtr) 1.00 1.61
EBT Margin % EBT Margin % (Qtr) -4.34 -2.36
Gross Margin % Gross Margin % (Qtr) 15.70 12.04
Net Profit Margin % Net Margin % (Qtr) -4.10 -3.21