Pacific Ethanol is the leading producer and marketer of low-carbon renewable fuels in the Western United States. The company also markets and distributes ethanol and co-products domestically and internationally. The company was founded in 2003 and is based in Sacramento, California.
PEIX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Pacific Ethanol Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Pacific Ethanol Inc ranked in the 21th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for PEIX, they are:
The company's debt burden, as measured by earnings divided by interest payments, is -3.87 -- which is good for besting only 21.81% 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 5.75 years, is -0.21% -- higher than only 8.52% of stocks in our DCF forecasting set.
13% of the company's capital comes from equity, which is greater than only 5.05% of stocks in our cash flow based 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 PEIX, try NS, SLB, MRO, MPC, and PSX.
Pacific Ethanol ([[PEIX]] +10.8%) says co-founder Neil Koehler will retire as President and CEO on September 30.COO Mike Kandris is named co-CEO and co-President and will work with Koehler during the transition; both Koehler and Kandris will remain on the company's board.Kandris has served as a director since 2008 and...
In this article we will take a look at whether hedge funds think Pacific Ethanol Inc (NASDAQ:PEIX) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips […]
Pacific Ethanol, Inc. (PEIX), a leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States, announced its increased focus on high-quality alcohol production and its leadership succession plan. The Board of Directors has appointed current COO, Mike Kandris, as Co-President and Co-CEO. Neil Koehler will retire as CEO and President on September 30, 2020 and will be working closely with Mr. Kandris during the transition period.