Hf Sinclair Stock Fair Value Calculation – HF Sinclair: Strong Business Performance Keeps ‘Hold’ Rating
December 15, 2023
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HF ($NYSE:DINO) Sinclair is a global energy provider and one of the world’s largest oil & gas producers. The company continues to be rated as a “Hold” despite its strong business performance. This is due to its high debt levels, underperforming capital structure, and a lack of growth potential. The company recently posted a strong financial report, showing improved profitability and cash flow. This was driven by higher production and sales of oil & gas products, which enabled the company to increase its market share. Additionally, HF Sinclair was able to reduce its operating costs and improve its cost structure. The company has also been able to reduce its debt load and improve its capital structure. This has enabled it to maintain an impressive liquidity position and fund its operations without having to borrow additional capital.
In addition, the company has been active in investing in new projects and expanding its presence in the energy industry. Despite its strong performance, HF Sinclair still carries a large amount of debt, which makes it vulnerable to economic downturns or market volatility. As such, analysts recommend holding the stock for now until the company can further reduce its debt and improve its capital structure. Overall, HF Sinclair’s strong business performance has enabled it to maintain its “Hold” rating.
Market Price
HF Sinclair is a company that has recently seen strong performance in the stock market. On Thursday, the stock opened at $53.9 and closed at $55.5, representing a 4.6% increase from the previous day’s closing price of 53.1. This indicates that investors are bullish on the company’s future prospects and suggests that the stock is likely to continue to perform well in the near future. As a result, analysts have maintained their ‘hold’ rating on the stock, expecting it to continue its strong performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hf Sinclair. More…
| Total Revenues | Net Income | Net Margin |
| 33.29k | 2.22k | 6.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hf Sinclair. More…
| Operations | Investing | Financing |
| 2.98k | -356.38 | -1.85k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hf Sinclair. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.9k | 8.29k | 54.27 |
Key Ratios Snapshot
Some of the financial key ratios for Hf Sinclair are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 38.0% | 41.5% | 9.7% |
| FCF Margin | ROE | ROA |
| 7.9% | 20.7% | 10.7% |
Analysis – Hf Sinclair Stock Fair Value Calculation
GoodWhale has conducted an analysis on HF SINCLAIR‘s wellbeing and we have determined that the intrinsic value of the company’s share is around $57.5. Our proprietary Valuation Line was used in order to make this determination. Currently, HF SINCLAIR stock is traded at $55.5, making it a fair price, though slightly undervalued by 3.4%. This indicates that there may be an opportunity to invest in HF SINCLAIR stock at a lower price than its intrinsic value, though we do urge potential investors to conduct their own research before investing. More…
Peers
The company is headquartered in Charleston, West Virginia and was founded in 2010. The company operates through two segments: Refining and Marketing. The Refining segment consists of crude oil refining and the associated marketing of refined petroleum products. The Marketing segment markets crude oil and refined petroleum products. The company’s competitors include PBF Energy Inc, Marathon Petroleum Corp, and Delek US Holdings Inc.
– PBF Energy Inc ($NYSE:PBF)
PBF Energy Inc is a holding company that owns and operates oil refineries and related assets. The company has a market cap of 5.7B as of 2022 and a Return on Equity of 52.76%. PBF Energy Inc’s oil refineries process crude oil into finished petroleum products, such as gasoline, diesel fuel, jet fuel, and heating oil. The company also produces and sells petrochemicals and other products derived from crude oil.
– Marathon Petroleum Corp ($NYSE:MPC)
Marathon Petroleum Corp is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off in 2011. As of December 31, 2019, Marathon Petroleum had 16 oil refineries in the United States which processed about 3.1 million barrels of crude oil per day. Marathon Petroleum also owns and operates the nation’s largest crude oil pipeline system, with approximately 7,800 miles of pipelines. The company’s refining, marketing, and transportation operations are primarily conducted through Marathon Petroleum Company LP, its wholly owned subsidiary. Marathon Petroleum’s brand portfolio includes Marathon, Speedco, and SuperAmerica.
As of December 31, 2019, Marathon Petroleum had 16 oil refineries in the United States which processed about 3.1 million barrels of crude oil per day. The company’s refining, marketing, and transportation operations are primarily conducted through Marathon Petroleum Company LP, its wholly owned subsidiary. Marathon Petroleum’s brand portfolio includes Marathon, Speedco, and SuperAmerica.
With a market cap of 59.44B as of 2022 and a Return on Equity of 32.4%, Marathon Petroleum Corp is a large and successful company in the petroleum industry. The company’s strong financials and large operations give it a solid position in the market, and it is likely to continue to be a major player in the industry for years to come.
– Delek US Holdings Inc ($NYSE:DK)
Delek US Holdings Inc is a diversified energy company with operations in the petroleum refining, logistics, and convenience store industries. The company has a market capitalization of 2.17 billion as of 2022 and a return on equity of 34.19%. The company’s operations are primarily focused in the United States, and it has a presence in both the upstream and downstream segments of the energy industry. Delek US Holdings Inc is headquartered in Brentwood, Tennessee.
Summary
HF Sinclair is a publicly traded company on the stock market that has been performing well despite some recent market volatility. Investors interested in the stock should consider it a “hold” because of its strong business performance. Despite some periodic dips in the stock price, it has generally trended upwards over the past few weeks, indicating that current shareholders should remain invested. Moving forward, investors will want to pay attention to the company’s fundamental performance to ensure they aren’t missing any potential upside.
