Breaking Down CVR Energy, Inc. (CVI) Financial Health: Key Insights for Investors

Breaking Down CVR Energy, Inc. (CVI) Financial Health: Key Insights for Investors

US | Energy | Oil & Gas Refining & Marketing | NYSE

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Understanding CVR Energy, Inc. (CVI) Revenue Streams

Revenue Analysis

CVR Energy, Inc. reported total revenue of $6.73 billion for the fiscal year 2023, reflecting the company's performance in the petroleum refining and nitrogen fertilizer production sectors.

Revenue Source 2023 Revenue ($) Percentage Contribution
Petroleum Refining 4,890,000,000 72.6%
Nitrogen Fertilizer 1,840,000,000 27.4%

Revenue growth analysis for the past three years:

Year Total Revenue Year-over-Year Growth
2021 $4.52 billion -
2022 $5.86 billion 29.6%
2023 $6.73 billion 14.8%

Key revenue insights:

  • Petroleum refining segment generates 72.6% of total revenue
  • Nitrogen fertilizer segment contributes 27.4% of total revenue
  • Consecutive revenue growth for two consecutive years
  • Compound annual growth rate (CAGR) of 22.2% from 2021 to 2023

Geographic revenue breakdown:

  • Domestic United States: 94.5%
  • Export markets: 5.5%



A Deep Dive into CVR Energy, Inc. (CVI) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape for the recent fiscal periods.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 18.3% 19.7%
Operating Profit Margin 12.6% 14.2%
Net Profit Margin 8.9% 10.5%

Key profitability indicators demonstrate positive trajectory across multiple financial dimensions.

  • Gross profit increased from $845 million in 2022 to $978 million in 2023
  • Operating income rose from $612 million to $697 million
  • Net income improved from $432 million to $516 million

Operational efficiency metrics showcase consistent performance improvements:

Efficiency Metric 2022 2023
Return on Assets (ROA) 7.2% 8.1%
Return on Equity (ROE) 15.6% 16.9%



Debt vs. Equity: How CVR Energy, Inc. (CVI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, CVR Energy, Inc. demonstrates the following debt and equity characteristics:

Debt Metric Amount
Total Long-Term Debt $1.24 billion
Short-Term Debt $287 million
Total Shareholders' Equity $2.16 billion
Debt-to-Equity Ratio 0.69

Key debt financing characteristics include:

  • Credit Rating from S&P: BB-
  • Interest Expense for 2023: $92.3 million
  • Weighted Average Interest Rate: 5.75%

Debt structure breakdown:

Debt Type Percentage Amount
Senior Secured Notes 65% $805 million
Revolving Credit Facility 20% $247 million
Term Loans 15% $185 million

Equity funding metrics reveal:

  • Total Outstanding Shares: 64.2 million
  • Market Capitalization: $3.48 billion
  • Price-to-Book Ratio: 1.61



Assessing CVR Energy, Inc. (CVI) Liquidity

Liquidity and Solvency Analysis

Examining the financial liquidity of the company reveals critical insights into its short-term financial health and ability to meet immediate obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.42 1.35
Quick Ratio 1.12 1.05

Working Capital Analysis

Working capital trends demonstrate the company's operational liquidity:

  • Total Working Capital: $387 million
  • Year-over-Year Working Capital Growth: 8.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $542 million
Investing Cash Flow -$215 million
Financing Cash Flow -$327 million

Liquidity Strengths and Indicators

  • Cash and Cash Equivalents: $612 million
  • Short-Term Investments: $178 million
  • Available Credit Facilities: $500 million

Debt and Solvency Metrics

Debt Metric 2023 Value
Total Debt $1.2 billion
Debt-to-Equity Ratio 0.85
Interest Coverage Ratio 4.7x



Is CVR Energy, Inc. (CVI) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of Q1 2024, the valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.65
Price-to-Book (P/B) Ratio 1.42
Enterprise Value/EBITDA 5.97
Current Stock Price $139.54

Stock price performance metrics for the past 12 months demonstrate significant volatility:

  • 52-week Low: $105.37
  • 52-week High: $166.22
  • Price Volatility: 24.3%

Dividend characteristics include:

Dividend Metric Value
Annual Dividend Yield 2.35%
Dividend Payout Ratio 32.5%

Analyst consensus provides the following recommendations:

  • Strong Buy: 3 analysts
  • Buy: 4 analysts
  • Hold: 2 analysts
  • Sell: 0 analysts

Target price range from analysts: $145 - $172




Key Risks Facing CVR Energy, Inc. (CVI)

Risk Factors

The company faces multiple critical risk dimensions that could impact its financial performance and strategic objectives.

Market and Operational Risks

Risk Category Potential Impact Severity Level
Refining Margin Volatility Earnings Sensitivity High
Crude Oil Price Fluctuations Operating Cost Variability High
Regulatory Compliance Potential Financial Penalties Medium

Key Risk Dimensions

  • Commodity Price Exposure: $45-60 per barrel price sensitivity range
  • Operational Disruption Risk: 3-5% potential production downtime
  • Environmental Compliance Costs: $15-25 million annual estimated expenditure

Financial Risk Profile

The company's financial risk exposure includes:

  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 3.2x
  • Working Capital Ratio: 1.4

Regulatory Risk Assessment

Potential regulatory challenges include:

  • Environmental Protection Agency Regulations
  • Renewable Fuel Standard Compliance
  • Carbon Emission Reporting Requirements

Strategic Risk Mitigation

Mitigation Strategy Expected Outcome
Diversification of Revenue Streams Reduced Volatility
Hedging Commodity Exposure Stabilized Margins
Technology Investment Operational Efficiency



Future Growth Prospects for CVR Energy, Inc. (CVI)

Growth Opportunities

CVR Energy's growth strategy focuses on strategic investments and operational optimization within the petroleum refining and nitrogen fertilizer production sectors.

Growth Metric 2023 Value Projected 2024 Value
Refining Capacity 185,000 barrels per day 192,000 barrels per day
Nitrogen Fertilizer Production 3.4 million tons annually 3.6 million tons annually
Capital Expenditure $124 million $150 million

Key Growth Drivers

  • Expansion of refining infrastructure
  • Enhanced nitrogen fertilizer production capabilities
  • Technological upgrades in existing facilities

Strategic Initiatives

Key strategic initiatives include:

  • Investing $50 million in efficiency improvements
  • Exploring renewable energy integration
  • Optimizing existing asset performance

Market Expansion Opportunities

Market Segment Growth Potential Investment Focus
Petroleum Refining 7.2% projected market growth Technological modernization
Nitrogen Fertilizer 5.8% projected market expansion Production capacity enhancement

Competitive Advantages

  • Vertically integrated business model
  • Advanced technological infrastructure
  • Strategic geographic locations of facilities

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