Of note is the ratio of HollyFrontier Corp's sales and general administrative expense to its total operating expenses; merely 6.35% of US stocks have a lower such ratio.
HFC's price/sales ratio is 0.22; that's higher than the P/S ratio of just 7.36% of US stocks.
HollyFrontier Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 14.96%, greater than the shareholder yield of 85.62% of stocks in our set.
Stocks that are quantitatively similar to HFC, based on their financial statements, market capitalization, and price volatility, are PRSP, SBOW, FTI, AA, and RFP.
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:
Below please find a table outlining a discounted cash flow forecast for HFC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that HollyFrontier Corp ranked in the 61th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 93% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for HFC, they are:
As a business, HFC is generating more cash flow than 79.49% of positive cash flow stocks in the Energy.
HollyFrontier Corp's effective tax rate, as measured by taxes paid relative to net income, is at 41 -- greater than 92.76% 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 -0.8. This coverage rate is greater than that of just 21.54% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 NEBLQ, CVX, DHT, GEOS, and TNK.
DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier”) today announced that its Board of Directors (the “Board”) appointed Manny Fernandez to the Board effective October 1, 2020. This appointment increases the size of the Board to eleven directors and increases the number of independent directors on the Board from nine to ten. Mr. Fernandez joined KPMG LLP in 1984 and served in a number of leadership positions until his retirement in September 2020, including most recen
Since mid-April, we’ve identified several companies with strong underlying core earnings and valuations implying profits would never recover from COVID-induced lows. Our “See Through the Dip” thesis acknowledges that most of these firms’ profits will decline in the short term. However, their strong balance sheets and industry leading profitability before...
David Trainer on Seeking Alpha | September 4, 2020
HollyFrontier Corporation (HFC) Q2 2020 Earnings Conference Call August 6, 2020 8:30 AM Company Participants Craig Biery – Director-Investor Relations Mike Jennings – President, Chief Executive Officer, Director and Executive Vice President Tim Go – Chief Operating Officer and Executive Vice President Rich Voliva – Executive Vice President and Chief...
DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported second quarter net loss attributable to HollyFrontier stockholders of $(176.7) million, or $(1.09) per diluted share, for the quarter ended June 30, 2020, compared to net income of $196.9 million, or $1.15 per diluted share, for the quarter ended June 30, 2019. The second quarter results reflect special items that collectively decreased net income by a total of $135.9 million. On a pr