5.75% Dividend Yield

Icahn owns 71%. Should you own some too? [View in browser]( Proprietary Data Insights Financial Pros’ Top Oil & Gas Refining & Marketing Stock Searches in the Last 30 Days Rank Name Searches #1 CVR Energy 291 #2 NGL Energy Partners 110 #3 Valero Energy 57 #4 Phillips 66 42 #5 PBF Energy 38 #ad [Where the Big Money’s Looking]( 5.75% Dividend Yield Billionaire Carl Icahn doesn’t shy away from big bets. His company Icahn Enterprises has a 71% stake in CVR Energy (CVI). Within less than a week, CVI recently surged from 0 to 96 searches in one day, according to our Trackstar database. And financial pros keep searching for it. The company pays a whopping 5.75% dividend yield. But it has a complicated business model. Is it right for your portfolio? CVR Energy’s Business CVR Energy owns and operates CVR Refining, which consists of two mid-continent refineries and linked pipelines. It also owns 37% of CVR Partners (UAN), which owns two fertilizer plants. CVR Energy is exploring spinning off its UAN stake by forming a holding company that would trade independently of UAN and CVI. Some of the company’s strategic priorities include focusing on environmental, health, and safety matters; preserving cash flow; and maximizing shareholder returns. Financials [Growth] Source: Stock Analysis Saying revenues have exploded is an understatement. They nearly tripled from 2020 to 2022. Yet gross, operating, and profit margins were largely the same. That’s typical for refiners that profit more from volume than oil prices. But CVI’s ownership in UAN gives it a more diverse revenue stream than most refiners have. The company maintains low levels of debt that it could pay off in two years based on free cash flow. Valuation [Sales] Source: Seeking Alpha Like many oil and gas companies, CVI trades at a pretty cheap valuation, with a trailing price-to-earnings ratio of 6.4x and a forward P/E ratio of 7.1x, though this is more expensive than the peers we compared CVI to. Also like its peers, CVI has a great price-to-cash ratio: just 3.1x. Growth [Growth] Source: Seeking Alpha CVI’s year-over-year growth was fantastic, though three of its peers beat it. It also has one of the lower forward revenue growth estimates. But it has great three- and five-year average growth rates. And its forward EBITDA growth estimates are the second-best of the group. Profitability [Margins] Source: Seeking Alpha Interestingly, CVI has better gross margins than its peers, though its EBIT and net income margins are in the middle to lower end of the pack. Of the group, it has the best return on equity. Its returns on assets and total capital are nice. [Take Your Investments to the Next Level With The Alt]( We curate crypto, NFT, real estate, startup, art, commodities, hedge fund, and more alternative investment content that matters to you. [Click here to sign up.]( Our Opinion 9/10 We love CVI’s diverse revenue streams. And its potential spinoff is a catalyst for higher share prices. Management is very shareholder-friendly. We don’t rate this stock a 10 only because some of its peers look a bit better. mailto:?body=Article URL: https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D577108?utm_medium=ic-nl&utm_source=105029 News & Insights Just Spilled - [What Buffett and Trump Have in Common]( - [Understand the Headlines That Dominate the Markets]( - [A 10/10 Regional Bank ETF]( - [3% Dividend but No Growth]( mailto:?body=Article URL: https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D577108?utm_medium=ic-nl&utm_source=105029 [We want to hear from you! Let us know your thoughts by clicking here]( [Link]( # Follow us on: [submit to reddit]( [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [allow us on your list]( Spill&email=TheSpill@news.investingchannel.com). Update your email preferences or unsubscribe [here](. Manage your subscriptions with our [preference center](. View our privacy policy [here](. Copyright ©2023 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc., newsletter is for information purposes only and is based on opinion. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or eliminate losses. InvestingChannel, Inc., makes no representation or implication that using any of the methodologies or systems in this newsletter will generate returns or insure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.