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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for CrossAmerica Partners LP. 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. As for the metrics that stood out in our discounted cash flow analysis of CrossAmerica Partners LP, consider:
CrossAmerica Partners LP's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 2.5% of tickers in our DCF set.
CrossAmerica Partners LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 21.37% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CAPL, try IMO, TGP, 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.