CrossAmerica Partners LP Common Units representing limited partner interests (CAPL) Company Bio
CrossAmerica Partners LP operates as a wholesale distributor of motor fuels, and owns and leases real estate used in the retail distribution of motor fuels in the United States. The company owns sites in Pennsylvania, New Jersey, Massachusetts, Ohio, Tennessee, Florida, New Hampshire, New York, Maine, Kentucky, Virginia, West Virginia, Maryland, Illinois, Indiana, and Delaware. The company was founded in 1992 and is based in Allentown, Pennsylvania.
CAPL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for CrossAmerica Partners LP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that CrossAmerica Partners LP ranked in the 98th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. The most interesting components of our discounted cash flow analysis for CrossAmerica Partners LP ended up being:
42% of the company's capital comes from equity, which is greater than merely 23.3% of stocks in our cash flow based forecasting set.
CrossAmerica Partners LP's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 2.35% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 21.81% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of CrossAmerica Partners LP? See TGP, IMO, USAC, QES, and AM.
Introduction The high-yielding area of the market was struck by a wave of dividends and distributions being reduced throughout the first half of 2020, but there were still several that remained steady, such as those from CrossAmerica Partners (CAPL). Whilst this has thus far been positive for their unitholders who...
The oil & gas industry is comprised of companies involved in the exploration, extraction, refining, and transportation of oil and gas products. The industry also includes companies that provide drilling and well-maintenance services.
Good morning, and thank you for joining the CrossAmerica Partners' first-quarter 2020 earnings call. With me today are Charles Nifong, CEO and president, and other members of our executive leadership team.