Delek US Energy Inc. (DK:NYE) Analysts rate as a Buy

STA Research
by: STA Research

Based on the Delek US Energy Inc stock forecasts from 8 analysts, the average analyst target price for Delek US Energy Inc is USD 28.79 over the next 12 months. Delek US Energy Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Delek US Energy Inc is Bearish, which is based on 3 positive signals and 11 negative signals. At the last closing, Delek US Energy Inc’s stock price was USD 34.29. Delek US Energy Inc’s stock price has changed by +3.88% over the past week, +9.75% over the past month and +44.38% over the last year.

Recently, Credit Suisse raised the target to $32 from $26, and maintained the Neutral rating.

Piper Sandler maintained the Overweight rating on the stock, and cut the target to $41 from $47.

In the United States, Delek US Holdings, Inc. is in the integrated downstream energy business. Refining, Logistics, and Retail are the three segments in which the corporation operates. Delek US Holdings, Inc. is based in Brentwood, Tennessee, and was founded in 2001.

What we like:

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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