NEW YORK (TheStreet) -- Shares of Delek US Holdings, Inc. (DK) are gaining 4.62% to $32.59 in early market trading after the company was upgraded to "outperform" from "market perform" at Cowen Group (COWN).
The firm set its price target at $43, and said the company is attractively valued on a sum of the parts basis.
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- The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that DK's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
- DELEK US HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, DELEK US HOLDINGS INC reported lower earnings of $1.95 versus $4.58 in the prior year. This year, the market expects an improvement in earnings ($2.52 versus $1.95).
- DK, with its decline in revenue, underperformed when compared the industry average of 1.5%. Since the same quarter one year prior, revenues fell by 17.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, DK has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 56.5% when compared to the same quarter one year ago, falling from $77.50 million to $33.70 million.
- You can view the full analysis from the report here: DK Ratings Report
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