Vertex Energy Intrinsic Value Calculator – Stifel Cautiously Downgrades Vertex Energy Amid Refining Market Volatility
December 22, 2023
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Vertex Energy ($NASDAQ:VTNR) Inc. is an oil refiner and marketer of refined products and renewable fuels. Recently, Stifel has downgraded their rating of Vertex Energy from “Buy” to “Hold” due to the volatility of the refining market. This adjustment came as a result of the ongoing shifts in the fuel prices, the uncertainly of the market, and the adjustments made to fuel production and distribution processes. As such, there is some concern about how Vertex Energy may be affected by these changes in the future.
While it is unclear what the exact impact of this downgrade may be, it is important to take a cautious approach as the industry navigates this uncertain market. If the refining industry continues to show signs of instability, it could have a significant impact on Vertex Energy’s future performance. Investors should keep a close eye on how things progress in the coming weeks and months in order to best anticipate how Vertex Energy may be affected.
Share Price
On Tuesday, Stifel, a financial services holding company, cautiously downgraded its rating on VERTEX ENERGY stock from a ‘hold’ to a ‘sell’. This comes amid increased volatility in the refining market, resulting in a decline in the company’s stock price. Specifically, VERTEX ENERGY stock opened at $3.5 and closed at $3.5, down by 4.9% from its prior closing price of 3.6. In light of the current market conditions, Stifel felt it was necessary to lower their rating for VERTEX ENERGY stock in order to protect investors. 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 Value Calculator
At GoodWhale, we conducted an analysis of VERTEX ENERGY‘s wellbeing. Our proprietary Valuation Line indicates that the fair value of VERTEX ENERGY share is around $33.1. However, we have found that VERTEX ENERGY stock is currently being traded at $3.5, resulting in a huge 89.4% discount on its fair value. This implies that VERTEX ENERGY is significantly undervalued and could be a great investment opportunity for investors. More…
Peers
In the energy sector, competition is fierce among companies striving to be the top provider. This is especially true for those in the oil and gas industry. One company that has been making waves lately is Vertex Energy Inc. This company has been competing against some of the biggest names in the business, such as Rompetrol Rafinare S.A., Neste Corp, and Esso Thailand PCL. So far, Vertex Energy Inc has been holding its own against these much larger competitors.
– Rompetrol Rafinare S.A. ($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 (VERTEX), a refining and environmental services company, has recently been downgraded to a “Hold” by Stifel. This is due to the volatility of the refining business VERTEX is in and the potential risks associated with this. Investors considering VERTEX should be aware of the potential for fluctuating stock prices, as well as possible short-term losses.
However, with these risks come potential rewards; VERTEX’s refining business could bring in solid returns in the long-term. Furthermore, VERTEX’s environmental services could be a profitable area of focus, given the increased focus on sustainability. Investors should research and consider the company’s financials before investing.
