NUSTAR ENERGY LP (NS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:NS • US67058H1023

21.96 USD
-0.41 (-1.83%)
At close: May 2, 2024
22 USD
+0.04 (+0.18%)
After Hours: 5/2/2024, 8:10:13 PM
Fundamental Rating

3

Overall NS gets a fundamental rating of 3 out of 10. We evaluated NS against 207 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 valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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.
  • The reported net income has been mixed in the past 5 years: NS reported negative net income in multiple years.
  • NS had a positive operating cash flow in each of the past 5 years.
NS Yearly Net Income VS EBIT VS OCF VS FCFNS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.71%, NS is doing worse than 77.67% of the companies in the same industry.
  • NS has a worse Return On Equity (3.38%) than 74.42% of its industry peers.
  • NS has a Return On Invested Capital (7.74%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for NS is significantly below the industry average of 21.94%.
  • The 3 year average ROIC (7.42%) for NS is below the current ROIC(7.74%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.71%
ROE 3.38%
ROIC 7.74%
ROA(3y)0.14%
ROA(5y)-1.9%
ROE(3y)1.41%
ROE(5y)-5.01%
ROIC(3y)7.42%
ROIC(5y)6.81%
NS Yearly ROA, ROE, ROICNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 -10 -15

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.11%, NS is doing worse than 73.02% of the companies in the same industry.
  • NS has a Operating Margin of 27.84%. This is comparable to the rest of the industry: NS outperforms 56.28% of its industry peers.
  • In the last couple of years the Operating Margin of NS has grown nicely.
  • NS has a Gross Margin (36.89%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of NS has grown nicely.
Industry RankSector Rank
OM 27.84%
PM (TTM) 2.11%
GM 36.89%
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%
NS Yearly Profit, Operating, Gross MarginsNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20

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1

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NS is still creating some value.
  • The number of shares outstanding for NS has been increased compared to 1 year ago.
  • NS has a worse debt/assets ratio than last year.
NS Yearly Shares OutstandingNS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
NS Yearly Total Debt VS Total AssetsNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

  • NS has a debt to FCF ratio of 10.32. This is a negative value and a sign of low solvency as NS would need 10.32 years to pay back of all of its debts.
  • The Debt to FCF ratio of NS (10.32) is comparable to the rest of the industry.
  • NS has a Debt/Equity ratio of 3.33. This is a high value indicating a heavy dependency on external financing.
  • NS has a worse Debt to Equity ratio (3.33) than 87.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.33
Debt/FCF 10.32
Altman-Z N/A
ROIC/WACC1.06
WACC7.28%
NS Yearly LT Debt VS Equity VS FCFNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 0.81 indicates that NS may have some problems paying its short term obligations.
  • NS has a Current ratio of 0.81. This is in the lower half of the industry: NS underperforms 72.09% of its industry peers.
  • NS has a Quick Ratio of 0.81. This is a bad value and indicates that NS is not financially healthy enough and could expect problems in meeting its short term obligations.
  • NS has a worse Quick ratio (0.73) than 67.91% of its industry peers.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.73
NS Yearly Current Assets VS Current LiabilitesNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

  • NS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.22%.
  • NS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.28% yearly.
  • The Revenue has decreased by -2.17% in the past year.
  • Measured over the past years, NS shows a small growth in Revenue. The Revenue has been growing by 1.46% on average per year.
EPS 1Y (TTM)-1.22%
EPS 3YN/A
EPS 5Y-4.28%
EPS Q2Q%-37.5%
Revenue 1Y (TTM)-2.17%
Revenue growth 3Y3.32%
Revenue growth 5Y1.46%
Sales Q2Q%-0.78%

3.2 Future

  • The Earnings Per Share is expected to grow by 21.67% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 0.91% on average over the next years.
EPS Next Y53.78%
EPS Next 2Y34.12%
EPS Next 3Y21.67%
EPS Next 5YN/A
Revenue Next Year6.8%
Revenue Next 2Y3.96%
Revenue Next 3Y0.91%
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 decreasing: in the next years the growth will be less than in the last years.
NS Yearly Revenue VS EstimatesNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
NS Yearly EPS VS EstimatesNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2

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4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.11, the valuation of NS can be described as expensive.
  • 75.81% of the companies in the same industry are cheaper than NS, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 28.30, NS is valued at the same level.
  • NS is valuated correctly with a Price/Forward Earnings ratio of 13.56.
  • The rest of the industry has a similar Price/Forward Earnings ratio as NS.
  • When comparing the Price/Forward Earnings ratio of NS to the average of the S&P500 Index (25.57), we can say NS is valued slightly cheaper.
Industry RankSector Rank
PE 27.11
Fwd PE 13.56
NS Price Earnings VS Forward Price EarningsNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • NS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NS is more expensive than 60.93% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NS indicates a somewhat cheap valuation: NS is cheaper than 69.30% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.44
EV/EBITDA 8.68
NS Per share dataNS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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 21.67% in the coming years.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y34.12%
EPS Next 3Y21.67%

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5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 7.29%, NS is a good candidate for dividend investing.
  • NS's Dividend Yield is a higher than the industry average which is at 3.73.
  • Compared to an average S&P500 Dividend Yield of 1.82, NS pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.29%

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
NS Yearly Dividends per shareNS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3 4

5.3 Sustainability

  • 861.28% of the earnings are spent on dividend by NS. This is not a sustainable payout ratio.
DP861.28%
EPS Next 2Y34.12%
EPS Next 3Y21.67%
NS Yearly Income VS Free CF VS DividendNS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M
NS Dividend Payout.NS Dividend Payout, showing the Payout Ratio.NS Dividend Payout.PayoutRetained Earnings

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NUSTAR ENERGY LP / NS FAQ

Can you provide the ChartMill fundamental rating for NUSTAR ENERGY LP?

ChartMill assigns a fundamental rating of 3 / 10 to NS.


What is the valuation status of NUSTAR ENERGY LP (NS) stock?

ChartMill assigns a valuation rating of 4 / 10 to NUSTAR ENERGY LP (NS). This can be considered as Fairly Valued.


Can you provide the profitability details for NUSTAR ENERGY LP?

NUSTAR ENERGY LP (NS) has a profitability rating of 4 / 10.


What is the financial health of NUSTAR ENERGY LP (NS) stock?

The financial health rating of NUSTAR ENERGY LP (NS) is 1 / 10.


Can you provide the expected EPS growth for NS stock?

The Earnings per Share (EPS) of NUSTAR ENERGY LP (NS) is expected to grow by 53.78% in the next year.