Vertex Energy Intrinsic Stock Value – VERTEX ENERGY Reports Earnings for FY2023 Q3 on November 7th
November 21, 2023
☀️Earnings Overview
On November 7 2023, VERTEX ENERGY ($NASDAQ:VTNR) reported results for the third quarter of FY2023, which ended September 30 2023. The company’s total revenue had grown 25.7% year-on-year to USD 1018.4 million, however, their reported net income for the same period had decreased by 10.8%, amounting to USD 19.8 million.
Market Price
On Tuesday, November 7th, VERTEX ENERGY reported its earnings for the third quarter of the fiscal year 2023. The stock opened at $4.4 and closed at $4.1, showing a decrease of 4.9% from its prior closing price of $4.3. This downward trend was further supported by a series of analyst reports that predict VERTEX ENERGY’s stock value will continue to decrease in the coming quarters. While analysts are generally bearish on the company’s prospects, there are also some who remain optimistic about their long-term outlook. Despite the weak earnings report, VERTEX ENERGY’s management insisted that the company is still on track to meet its long-term goal of growth and profitability. They highlighted their efforts to strengthen their product portfolio and improve operational efficiency in order to better compete in the energy industry. In addition, VERTEX ENERGY also announced plans to expand its presence in foreign markets in order to capture more market share and increase their revenue. Overall, the results of VERTEX ENERGY’s earnings report for Q3 FY2023 were not as positive as investors had hoped.
However, with continued focus on product innovation and increased investments in foreign markets, it is still possible for VERTEX ENERGY to experience growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vertex Energy. More…
| Total Revenues | Net Income | Net Margin |
| 3.32k | 36.77 | -0.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vertex Energy. More…
| Operations | Investing | Financing |
| 14.77 | -86.75 | 29.57 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vertex Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 892.68 | 630.09 | 2.77 |
Key Ratios Snapshot
Some of the financial key ratios for Vertex Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 189.1% | 61.9% | 2.4% |
| FCF Margin | ROE | ROA |
| 2.1% | 20.0% | 5.6% |
Analysis – Vertex Energy Intrinsic Stock Value
At GoodWhale, we have conducted a comprehensive analysis of VERTEX ENERGY‘s fundamentals. According to our proprietary Valuation Line, the fair value of VERTEX ENERGY’s share is around $33.0. At the current level, VERTEX ENERGY stock is undervalued by 87.6%. This suggests an excellent opportunity for potential investors looking to get exposure to VERTEX ENERGY at a discounted price. More…
Peers
In the energy sector, competition is fierce among companies striving to be the top provider. This is especially true for those in the oil and gas industry. One company that has been making waves lately is Vertex Energy Inc. This company has been competing against some of the biggest names in the business, such as Rompetrol Rafinare S.A., Neste Corp, and Esso Thailand PCL. So far, Vertex Energy Inc has been holding its own against these much larger competitors.
– Rompetrol Rafinare S.A. ($LTS:0JK8)
Rompetrol Rafinare S.A. is a Romanian oil refining company. It has a market cap of 2.06B as of 2022 and a Return on Equity of -1.8%. The company refines crude oil and sells a variety of petroleum products, including gasoline, diesel, jet fuel, and heavy fuel oil. It also produces and sells asphalt, bitumen, and other petrochemical products. The company has operations in Romania, Bulgaria, Moldova, and Kazakhstan.
– Neste Corp ($OTCPK:NTOIF)
Neste Corp is a Finnish oil refining and marketing company. It has a market cap of 33.36B as of 2022 and a Return on Equity of 22.26%. The company refines crude oil into transportation fuels, such as gasoline, diesel, and aviation fuel, and produces and sells a range of other petroleum products, such as solvents, lubricants, and asphalt.
– Esso Thailand PCL ($SET:ESSO)
Esso Thailand PCL is a petroleum refining and marketing company. It has a market capitalization of 50.18 billion as of 2022 and a return on equity of 40.5%. The company refines and markets petroleum products in Thailand. It also produces and sells petrochemical products.
Summary
Vertex Energy Inc. posted its earnings results for the third quarter of FY2023 on November 7 2023, revealing a 25.7% year-over-year increase in total revenue to USD 1018.4 million. Despite this growth in revenue, the company’s reported net income decreased 10.8% year-over-year to USD 19.8 million. This news sent the stock price down on the same day. For investors, this quarter’s results may appear mixed.
While Vertex Energy’s revenue grew significantly, the decrease in net income could be cause for concern and could affect investor confidence. Moreover, the stock price decline could further indicate reduced investor optimism regarding the company’s future performance. Therefore, investors should consider all relevant factors before investing in Vertex Energy Inc.
