Green Plains Intrinsic Value Calculation – Green Plains Reports Missed Earnings, But Beat Revenue Expectations
May 5, 2023
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Green Plains ($NASDAQ:GPRE) Inc. (NASDAQ: GPRE) is an ethanol producer and marketer based in Omaha, Nebraska. Unfortunately, the company missed its earnings expectations but exceeded its revenue expectations. Green Plains’ GAAP EPS of -$1.20 fell short of estimates by $0.77, while revenue of $832.9M exceeded expectations by $9.55M. The company attributed the miss to higher-than-expected costs related to the closure of their Blender’s Tax Credit facility located in Ohio.
Overall, Green Plains reports a mostly positive quarter with a surprise in terms of revenue, though it fell short on earnings expectations. Investors will likely be watching closely in the coming months to see how the company can capitalize on its strong revenue growth and turn a profit.
Earnings
In its earning report of FY2022 Q4 as of December 31 2022, GREEN PLAINS reported 914.04M USD in total revenue and a net income of -38.62M USD. Although the quarter’s income is lower than expected, it still represents a 13.9% increase compared to the same period last year. Over the past 3 years, GREEN PLAINS has experienced drastic growth in terms of revenue, increasing from 478.76M USD to 914.04M USD. This marks a period of solid progress and steady growth for the company.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Green Plains. More…
| Total Revenues | Net Income | Net Margin |
| 3.66k | -127.22 | -3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Green Plains. More…
| Operations | Investing | Financing |
| 69.71 | -105.25 | -25.14 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Green Plains. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.12k | 1.06k | 15.35 |
Key Ratios Snapshot
Some of the financial key ratios for Green Plains are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.9% | -47.4% | -1.8% |
| FCF Margin | ROE | ROA |
| -3.9% | -4.4% | -1.9% |
Stock Price
On Thursday, GREEN PLAINS, a leading ethanol producer, reported their quarterly earnings. While they missed the earnings expectations by a wide margin, they managed to beat the analysts’ revenue estimates. As a result, the stock opened at $33.4 and closed at the same price, with a marginal decrease of 0.2% from its previous closing price of 33.4.
The company’s shares saw a significant jump in the pre-market trading, with investors hoping for better than expected numbers, but this sentiment did not continue through the day. Despite the missed earnings estimates, the company remains committed to improving its performance in the coming quarters. Live Quote…
Analysis – Green Plains Intrinsic Value Calculation
At GoodWhale, we have examined the fundamentals of GREEN PLAINS, and have concluded that its intrinsic value is around $30.5, based on our proprietary Valuation Line. This means that, right now, the stock is trading at $33.4, which is 9.5% higher than its fair value. This means that the stock is currently overvalued, and investors should be cautious when considering buying it. More…
Peers
Green Plains Inc is an American-based biofuel company and is the fourth largest ethanol producer in the United States. Green Plains Inc has three main competitors: REX American Resources Corp, Hypower Fuel Inc, Alto Ingredients Inc. All three companies are based in the United States and are engaged in the business of biofuel production.
– REX American Resources Corp ($NYSE:REX)
REX American Resources Corp is a publicly traded company that explores for, develops, and produces oil and natural gas. The company has a market capitalization of 536.43 million as of 2022 and a return on equity of 9.35%. The company’s primary operations are located in the United States.
– Hypower Fuel Inc ($OTCPK:HYPF)
Alto Ingredients Inc is a food and beverage company with a market cap of 303.4M as of 2022. The company has a return on equity of 9.76%. Alto Ingredients Inc produces and sells food and beverage products. The company offers a variety of food and beverage products, including processed foods, beverages, and snacks. Alto Ingredients Inc also provides a range of services, including food and beverage processing, packaging, and distribution.
Summary
Green Plains Inc. reported its latest financial results, with a GAAP earnings per share (EPS) of negative $1.20, missing the analyst consensus by $0.77. Revenues exceeded expectations by $9.55 million, totaling $832.9 million. Investors may wish to take a closer look into Green Plains’ performance to determine the potential investment implications, looking at aspects such as earnings growth, liquidity, financial strength, and profitability. Many investors use fundamental analysis to assess the financial position of a company, including its dividend policy, cash flow trends, historical growth rates, and balance sheet structure.
Technical analysis can be used to evaluate past price movements and identify potential future patterns. It is important to remember that investing involves risk, and past performance is no guarantee of future results.
