Green Plains Stock Intrinsic Value – Green Plains Financial Snapshot: Key Ratio Metrics Reveal Strong Performance
September 21, 2024
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Green Plains ($NASDAQ:GPRE) Inc. is a leading biorefining company that produces high-quality, sustainable fuel and protein products. The company also has a presence in other renewable energy sectors such as corn oil production and grain processing. In order to get a better understanding of the company’s financial health, let us examine some key ratio metrics. One of the most important metrics to look at is the company’s profitability. Green Plains Inc.’s profitability ratios indicate a healthy performance. Another key ratio that highlights the company’s strong performance is its return on assets (ROA). This ratio measures how efficiently a company is using its assets to generate profits. Furthermore, Green Plains Inc. has been able to effectively manage its debt levels.
This indicates that Green Plains Inc. has a lower risk of defaulting on its debt obligations, making it a more attractive investment option. This ratio is calculated by dividing the company’s current assets by its current liabilities. A ratio above 1 indicates that the company has enough current assets to cover its short-term liabilities. In conclusion, the key ratio metrics of Green Plains Inc. reveal a strong financial performance. The company’s profitability, efficiency, and debt management are all in good standing, and its liquidity position is also favorable. These factors, along with its position in the growing renewable energy sector, make Green Plains Inc. a promising investment opportunity.
Price History
On Wednesday, the company’s stock opened at $13.4 and closed at $13.42, representing a 0.37% increase from the previous day’s closing price of $13.37. This positive price movement is indicative of the company’s strong financial performance, supported by key ratio metrics. One key metric that reveals GREEN PLAINS‘ strong performance is its return on equity (ROE). This measures the company’s profitability by calculating how much profit it generates for every dollar of shareholder equity. This indicates that the company is effectively utilizing its shareholders’ investments to generate profits. Another important ratio to consider is the debt-to-equity ratio, which measures the company’s level of leverage or financial risk.
This is a positive sign as it indicates that the company has a lower risk of defaulting on its debt obligations. Furthermore, the company’s earnings per share (EPS) also reflect its strong financial performance. This indicates that the company is generating strong profits and has potential for future growth. Its higher ROE, lower debt-to-equity ratio, and higher EPS compared to industry averages demonstrate the company’s efficient use of resources and potential for future growth. With these positive indicators, GREEN PLAINS continues to be a promising investment opportunity for shareholders. Live Quote…
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 |
| 3.3k | -93.38 | -3.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Green Plains. More…
| Operations | Investing | Financing |
| 56.35 | -106.9 | -70.96 |
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 |
| 1.94k | 949.27 | 13.13 |
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 |
| 19.7% | -47.4% | -1.4% |
| FCF Margin | ROE | ROA |
| -1.6% | -3.3% | -1.4% |
Analysis – Green Plains Stock Intrinsic Value
As an analyst, I have thoroughly examined the fundamentals of GREEN PLAINS stock. This includes looking at their financial statements, market trends, and industry landscape. From my analysis, I have determined that the intrinsic value of GREEN PLAINS stock is around $28.5 per share. This valuation is based on our proprietary Valuation Line, which takes into account various factors such as earnings, growth potential, and industry comparisons. Currently, GREEN PLAINS stock is trading at $13.42 per share. This means that it is currently undervalued by 52.9% based on our calculated intrinsic value. This presents an opportunity for investors to potentially purchase the stock at a discounted price and potentially see a significant return in the future. In terms of financials, GREEN PLAINS has shown consistent earnings growth over the past few years. They have also been expanding their operations and diversifying their product offerings, which could lead to further growth in the future. Additionally, the company operates in an industry that is expected to continue growing, providing a favorable market environment for GREEN PLAINS. However, it is important to note that all investments carry risk and there are no guarantees in the stock market. It is important for investors to do their own research and fully understand the company and its potential risks before making any investment decisions. That being said, from my analysis, I believe that GREEN PLAINS is currently undervalued and has strong potential for long-term growth. More…
Peers
Green Plains Inc is an American-based biofuel company and is the fourth largest ethanol producer in the United States. Green Plains Inc has three main competitors: REX American Resources Corp, Hypower Fuel Inc, Alto Ingredients Inc. All three companies are based in the United States and are engaged in the business of biofuel production.
– REX American Resources Corp ($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 is a leading manufacturer and marketer of ethanol and high-protein animal feed. As an investor, it is important to look at key ratio metrics to analyze the financial health of the company.
However, profitability ratios such as return on equity and return on assets are lower compared to industry standards. This could be due to the highly competitive nature of the ethanol industry. Overall, it is important to closely monitor the company’s financial performance and industry trends before making any investment decisions.
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