CVR Energy, Inc. (CVI) Bundle
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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