Delek US Holdings Inc

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DK : NYSE : Basic Materials
$23.41 up 0.2 | 0.86%
Today's Range: 23.0 - 23.49
Avg. Daily Volume: 971100.0
01/23/17 - 4:02 PM ET

Financial Analysis


DELEK US HOLDINGS INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. DELEK US HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.50 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 22.21% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1079.91293.5
EBITDA ($mil)28.441.7
EBIT ($mil)-0.614.2
Net Income ($mil)-161.718.7


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)315.3366.3
Total Assets ($mil)3019.53433.5
Total Debt ($mil)878.1953.7
Equity ($mil)948.21219.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin4.945.35
EBITDA Margin2.623.22
Operating Margin-0.061.1
Sales Turnover1.481.58
Return on Assets-7.592.57
Return on Equity-24.776.74
Debt Q3 FY16 Q3 FY15
Current Ratio1.381.31
Debt/Capital0.480.44
Interest Expense13.914.2
Interest Coverage-0.041.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)61.8762.57
Div / share0.150.15
EPS-2.710.16
Book value / share15.3219.48
Institutional Own % n/a n/a
Avg Daily Volume964218.01106961.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 1.51 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 9.26. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, DELEK US HOLDINGS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DK NM Peers 43.26   DK 12.92 Peers 13.65

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

DK's P/E is negative making this valuation measure meaningless.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DK is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DK NM Peers 314.32   DK NA Peers 2.49

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

DK's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DK 1.51 Peers 9.26   DK -383.58 Peers -159.32

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DK is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DK is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DK 0.32 Peers 2.64   DK -17.41 Peers -32.35

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DK is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DK has a sales growth rate that significantly exceeds its peers.

 

 

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