HollyFrontier Corporation is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. The company was founded in 1947 and is based in Dallas, Texas.
HFC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for HollyFrontier Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that HollyFrontier Corp ranked in the 19th 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. As for the metrics that stood out in our discounted cash flow analysis of HollyFrontier Corp, consider:
HollyFrontier Corp's effective tax rate, as measured by taxes paid relative to net income, is at 26 -- greater than 88.93% of US stocks with positive free cash flow.
HollyFrontier Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.84. This coverage rate is greater than that of only 14% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 13. This value is greater than 67.68% stocks in the Energy sector that generate free cash flow.
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 HFC, try CHKAQ, PUMP, TGA, FTI, and RDS.A.
(Bloomberg) -- The Supreme Court will review the ability of oil refineries to win exemptions from federal biofuel-blending quotas, a blow to producers of ethanol and biodiesel that had challenged the waivers.The justices, without comment, agreed to hear an appeal by units of HollyFrontier Corp. and Wynnewood Refining Co., which said a 10th U.S. Circuit Court of Appeals ruling wrongly deprived small refineries of economic relief specifically authorized by Congress.At issue is the Renewable Fuel Standard law that requires refineries and fuel importers to blend plant-based alternative fuels such as corn-based ethanol and soy-based biodiesel into their products.The law also empowered the Environmental Protection Agency to give some small refineries exemptions from the biofuel-blending manda...
DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE: HFC) (the "Company") plans to announce results for its quarter ending December 31, 2020 on February 24, 2021, before the opening of trading on the NYSE. The Company has scheduled a webcast conference on February 24, 2021 at 8:30 a.m. Eastern time to discuss financial results. This webcast may be accessed at: https://event.on24.com/wcc/r/2950760/AF27087C3232DF9D1112AE68A106191D An audio archive of this webcast will be available using the
This year has been a historically brutal one for oil stocks, with a collapse in demand driven by COVID-19 travel restrictions and shutdowns pushing WTI crude oil prices briefly into negative territory for the first time in history. Yet the oil market has since stabilized, and one analyst said Friday it may finally be time for investors to start dipping their toes in the space in 2021. The Analysts: Morgan Stanley analysts Devin McDermott and Benny Wong issued rating and price target updates throughout their oil coverage, including the following upgrades: Diamondback Energy Inc (NYSE: FANG ), upgraded from Equal Weight to Overweight, price target raised from $51 to $65. Murphy Oil Corporation (NYSE: MUR ) upgraded from Underweight to Equal Weight, price target raised from $12 to $14. Ran...