NUSTAR ENERGY LP (NS)

US67058H1023

23.27  +0.17 (+0.74%)

After market: 23.27 0 (0%)

Fundamental Rating

3

NS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While NS is still in line with the averages on profitability rating, there are concerns on its financial health. NS has a correct valuation and a medium growth rate.



4

1. Profitability

1.1 Basic Checks

NS had positive earnings in the past year.
NS had a positive operating cash flow in the past year.
In multiple years NS reported negative net income over the last 5 years.
Each year in the past 5 years NS had a positive operating cash flow.

1.2 Ratios

NS has a worse Return On Assets (1.73%) than 75.12% of its industry peers.
NS has a Return On Equity of 8.08%. This is in the lower half of the industry: NS underperforms 68.08% of its industry peers.
The Return On Invested Capital of NS (7.93%) is comparable to the rest of the industry.
NS had an Average Return On Invested Capital over the past 3 years of 7.42%. This is significantly below the industry average of 48.71%.
The last Return On Invested Capital (7.93%) for NS is above the 3 year average (7.42%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.73%
ROE 8.08%
ROIC 7.93%
ROA(3y)0.14%
ROA(5y)-1.9%
ROE(3y)1.41%
ROE(5y)-5.01%
ROIC(3y)7.42%
ROIC(5y)6.81%

1.3 Margins

NS has a Profit Margin of 5.17%. This is in the lower half of the industry: NS underperforms 70.42% of its industry peers.
NS's Operating Margin of 28.71% is in line compared to the rest of the industry. NS outperforms 56.34% of its industry peers.
In the last couple of years the Operating Margin of NS has grown nicely.
NS has a Gross Margin (36.94%) which is comparable to the rest of the industry.
NS's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 28.71%
PM (TTM) 5.17%
GM 36.94%
OM growth 3Y-0.68%
OM growth 5Y5.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.12%
GM growth 5Y4.79%

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NS is creating some value.
Compared to 1 year ago, NS has more shares outstanding
NS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NS has a worse debt to assets ratio.

2.2 Solvency

The Debt to FCF ratio of NS is 9.31, which is on the high side as it means it would take NS, 9.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.31, NS is in line with its industry, outperforming 41.78% of the companies in the same industry.
NS has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.26, NS is doing worse than 88.73% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.26
Debt/FCF 9.31
Altman-Z N/A
ROIC/WACC1.07
WACC7.4%

2.3 Liquidity

NS has a Current Ratio of 0.85. This is a bad value and indicates that NS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.85, NS is doing worse than 70.89% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that NS may have some problems paying its short term obligations.
NS has a Quick ratio of 0.76. This is in the lower half of the industry: NS underperforms 67.61% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.76

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.88% over the past year.
Measured over the past years, NS shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.28% on average per year.
NS shows a decrease in Revenue. In the last year, the revenue decreased by -2.92%.
The Revenue has been growing slightly by 1.46% on average over the past years.
EPS 1Y (TTM)16.88%
EPS 3YN/A
EPS 5Y-4.28%
EPS growth Q2Q105.56%
Revenue 1Y (TTM)-2.92%
Revenue growth 3Y3.32%
Revenue growth 5Y1.46%
Revenue growth Q2Q5.04%

3.2 Future

The Earnings Per Share is expected to grow by 25.57% on average over the next years. This is a very strong growth
NS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.82% yearly.
EPS Next Y64.51%
EPS Next 2Y40.17%
EPS Next 3Y25.57%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y4.82%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 25.86 indicates a quite expensive valuation of NS.
Based on the Price/Earnings ratio, NS is valued a bit more expensive than 76.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. NS is around the same levels.
A Price/Forward Earnings ratio of 15.72 indicates a correct valuation of NS.
The rest of the industry has a similar Price/Forward Earnings ratio as NS.
The average S&P500 Price/Forward Earnings ratio is at 22.79. NS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 25.86
Fwd PE 15.72

4.2 Price Multiples

62.44% of the companies in the same industry are cheaper than NS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NS is valued a bit cheaper than the industry average as 72.77% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.03
EV/EBITDA 8.77

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NS's earnings are expected to grow with 25.57% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y40.17%
EPS Next 3Y25.57%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.69%, NS is a good candidate for dividend investing.
NS's Dividend Yield is a higher than the industry average which is at 5.82.
NS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 6.69%

5.2 History

The dividend of NS decreases each year by -8.34%.
NS has been paying a dividend for at least 10 years, so it has a reliable track record.
NS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-8.34%
Div Incr Years0
Div Non Decr Years2

5.3 Sustainability

NS pays out 354.58% of its income as dividend. This is not a sustainable payout ratio.
DP354.58%
EPS Next 2Y40.17%
EPS Next 3Y25.57%

NUSTAR ENERGY LP

NYSE:NS (3/28/2024, 8:04:00 PM)

After market: 23.27 0 (0%)

23.27

+0.17 (+0.74%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.94B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 6.69%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 25.86
Fwd PE 15.72
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.4
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.73%
ROE 8.08%
ROCE
ROIC
ROICexc
ROICexgc
OM 28.71%
PM (TTM) 5.17%
GM 36.94%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 3.26
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.85
Quick Ratio 0.76
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.88%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y64.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.92%
Revenue growth 3Y3.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y