NYSE:CVI is an undervalued gem with solid fundamentals.

Last update: Nov 23, 2023

Our stock screening tool has pinpointed CVR ENERGY INC (NYSE:CVI) as an undervalued stock. NYSE:CVI maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

What does the Valuation looks like for NYSE:CVI

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:CVI has earned a 7 for valuation:

Based on the Price/Earnings ratio of 4.79, the valuation of CVI can be described as very cheap.
82.49% of the companies in the same industry are more expensive than CVI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CVI to the average of the S&P500 Index (24.54), we can say CVI is valued rather cheaply.
CVI is valuated reasonably with a Price/Forward Earnings ratio of 9.91.
The average S&P500 Price/Forward Earnings ratio is at 19.58. CVI is valued slightly cheaper when compared to this.
88.94% of the companies in the same industry are more expensive than CVI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVI indicates a rather cheap valuation: CVI is cheaper than 87.10% of the companies listed in the same industry.
The decent profitability rating of CVI may justify a higher PE ratio.

A Closer Look at Profitability for NYSE:CVI

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CVI has achieved a 6:

CVI's Return On Assets of 17.87% is fine compared to the rest of the industry. CVI outperforms 77.42% of its industry peers.
With an excellent Return On Equity value of 82.55%, CVI belongs to the best of the industry, outperforming 91.71% of the companies in the same industry.
CVI has a better Return On Invested Capital (32.24%) than 92.17% of its industry peers.
CVI's Profit Margin has improved in the last couple of years.
In the last couple of years the Operating Margin of CVI has grown nicely.
In the last couple of years the Gross Margin of CVI has grown nicely.

Understanding NYSE:CVI's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CVI was assigned a score of 6 for health:

An Altman-Z score of 3.67 indicates that CVI is not in any danger for bankruptcy at the moment.
CVI has a Altman-Z score of 3.67. This is in the better half of the industry: CVI outperforms 79.72% of its industry peers.
CVI has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
CVI has a Debt to FCF ratio of 1.93. This is in the better half of the industry: CVI outperforms 70.97% of its industry peers.
Even though the debt/equity ratio score it not favorable for CVI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
The Current ratio of CVI (1.44) is better than 62.67% of its industry peers.

Growth Analysis for NYSE:CVI

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CVI has achieved a 4 out of 10:

The Earnings Per Share has grown by an impressive 59.71% over the past year.
Measured over the past years, CVI shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.25% on average per year.
Measured over the past years, CVI shows a quite strong growth in Revenue. The Revenue has been growing by 12.72% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of CVI

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.