Fundamental analysis: CVR Energy, Inc. (CVI)

Awarener score: 8.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business has been growing at a very good pace. It's been below average when measured against peer companies.
CVR Energy, Inc. business varies frequently, ups and downs are normal. It's risky. It looks mediocre against rivals.

Margins score: 4.7

CVI profit margins -on goods and services sold- are usually extremely poor. They stand somewhat worse than rival companies.
Business profit on sales tends to be sufficient. It's encouraging in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain in good shape compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still somewhat better than similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain similar to rivals.
Total net profit tends to be hardly sufficient when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 2.3

CVR Energy, Inc. couldn't always profit -on goods and services sold- in the past years. It's been a disappointment compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares great when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 7.0

CVI had hardly to pay income taxes in relation to profits made in the past years. It's been somewhat better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.0

CVR Energy, Inc. usually gets excellent returns on the resources it controls. It proves encouraging in relation to peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
Profitability -in relation to owned resources- is usually paramount. It ranks more than average in relation to competitors.
In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 5.8

CVI usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands similar to rival firms.
The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is below average when measured against industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came top-notch against competitors.
Has significantly increased dividend payments in the past years. Business prospects probably have improved. The company has behaved excellent in relation to similar firms.
The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks worse than most comparable companies.
The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a lot more funds to reward investors than it can genuinely generate, so they're paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business improves, or rewards won't keep at current pace. It still looks substantially worse when measured against competitors.

Balance Sheet score: 6.2

CVR Energy, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in a weak position compared to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains somewhat worse than rival firms.
Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks almost average when measured against rivals.
For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is slightly better than similar enterprises.
Usually, sales are on less than a month credit. It still ranks encouraging in relation to peers.
Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as in a weak position compared to competitors.
On average, it takes close to one month from the purchase to charging customers. It happens to be slightly worse than peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's in a weak position compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands slightly worse than rival firms.
Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 7.3

CVR Energy, Inc. looks cheap in relation to profits and financial position. It happens to be almost average when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands slightly better than similar companies.
The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still almost average when measured against industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
The company is somewhat indebted, loan repayment needs to be taken into account. It looks slightly worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks almost average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks in a weak position compared to rival firms.
The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be similar to industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still rather normal in relation to peer companies.

Total score: 5.9

Company at a glance: CVR Energy, Inc. (CVI)

Sector, industry: Energy, Oil & Gas Refining & Marketing

Market Cap: 3.32 billions

Revenues TTM: 10.90 billions

CVR Energy, Inc., together with its subsidiaries, engages in the petroleum refining and nitrogen fertilizer manufacturing activities in the United States. It operates in two segments, Petroleum and Nitrogen Fertilizer. The Petroleum segment refines and markets gasoline, diesel fuel, and other refined products. It also owns and operates a coking medium-sour crude oil refinery in southeast Kansas; and a crude oil refinery in Wynnewood, Oklahoma, as well as supporting logistics assets. This segment primarily serves retailers, railroads, farm co-operatives, and other refiners/marketers. The Nitrogen Fertilizer segment owns and operates a nitrogen fertilizer plant in North America that utilizes a pet coke gasification process to produce nitrogen fertilizer products; and a nitrogen fertilizer facility in East Dubuque, Illinois that produces nitrogen fertilizers in the form of ammonia and urea ammonium nitrate (UAN). It primarily markets UAN products to agricultural customers; and ammonia products to agricultural and industrial customers. The company was founded in 1906 and is headquartered in Sugar Land, Texas. CVR Energy, Inc. is a subsidiary of Icahn Enterprises L.P.