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 81th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 600.5%. The most interesting components of our discounted cash flow analysis for CrossAmerica Partners LP ended up being:
45% of the company's capital comes from equity, which is greater than just 23.63% 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 only 1.63% 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 18.3% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Introduction It was slightly over two months ago that I previously warned that CrossAmerica Partners (CAPL) was at risk of reducing their very high distribution yield of almost 14%. Whilst their earnings performance during the second quarter was surprisingly strong, it does not alleviate the pressure their distributions face and...
Daniel Thurecht on Seeking Alpha | September 7, 2020
Allentown, PA, July 23, 2020 (GLOBE NEWSWIRE) -- CrossAmerica Partners LP Maintains Quarterly Distribution ·Quarterly distribution of $0.5250 per unit attributable to the second quarter of 2020ALLENTOWN, PA (July 23, 2020) – CrossAmerica Partners LP (NYSE: CAPL) announced today that the Board of Directors of its general partner has approved a quarterly distribution of $0.5250 per unit attributable to the second quarter of 2020 (annualized $2.10 per unit). The distribution attributable to the second quarter is payable on August 11, 2020 to all unitholders of record on August 4, 2020.CrossAmerica will host a conference call on August 7th at 9:00 a.m. Eastern Time to discuss second quarter earnings results, which will be released after the market closes on Thursday, August 6.About Cros...
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...