Vertex Energy Inc. is a middle market consolidator, refiner and re-refiner of distressed petroleum streams, such as used oil, transmix, fuel oils and off-specification commercial chemical products.
VTNR 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 Vertex Energy Inc. To summarize, we found that Vertex Energy Inc ranked in the 8th 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 Vertex Energy Inc, consider:
The compound growth rate in the free cash flow of Vertex Energy Inc over the past 1.68 years is -0.13%; that's better than just 23.41% of cash flow producing equities in the Energy sector, where it is classified.
Vertex Energy Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Vertex Energy Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.67. This coverage rate is greater than that of only 14.16% 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 VTNR, try FPPP, PTR, EPSN, SRLP, and COP.
Vertex Energy (NASDAQ:VTNR) reported Q3 sales of $37.38 million. Earnings fell to a loss of $1.84 million, resulting in a 78.52% decrease from last quarter. Vertex Energy collected $21.37 million in revenue during Q2, but reported earnings showed a $8.57 million loss. What Is Return On Capital Employed? Changes in earnings and sales indicate shifts in Vertex Energy's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q3, Vertex Energy posted an ROCE of -0.03%. It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent perfo...
When a company employs the phrase “exploring strategic alternatives,” it tends to send a shiver down a shareholder's spine. When a company explores alternatives for a second time in less than five years, even the most loyal shareholders may check the forecast twice. Vertex Energy (VTNR) is a UMO (used...