CVR Energy engages in petroleum refining and nitrogen fertilizer manufacturing activities in the United States. The company operates through two segments, Petroleum and Nitrogen Fertilizer. The company was founded in 2007 and is based in Sugar Land, Texas.
CVI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cvr Energy Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cvr Energy Inc ranked in the 0th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Cvr Energy Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 1.71 -- which is good for besting 64.83% of its peer stocks (US stocks in the Energy sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 5.76 years, is -0.47% -- higher than only 1.9% of stocks in our DCF forecasting set.
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 CVI, try CLR, EXTN, GLOG, KLXE, and OAS.
Phillips 66 (PSX) hinted at the end of July that the cancellation of its proposed 18,000 bpd renewable diesel facility in Washington due to a lack of "permit certainty" did not mean the end of its biofuel expansion plans. When Executive VP Bob Herman said during the Q2 earnings call...
Tristan R. Brown on Seeking Alpha | August 17, 2020
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of CVR Energy Inc. New York, August 10, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of CVR Energy Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
CVR Energy (CVI) says it is evaluating a renewable diesel project at its Wynnewood, Okla., refinery, as it seeks relief from rising RINs prices and falling demand for refined products."This project would convert an existing hydrocracker to allow for the production of renewable diesel and also includes tanks, a rail...