Do Analysts Know Something We Don't About Vertex Energy (VTNR)?

Vertex Energy may be overvalued with poor growth indicators, but the 6 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $7.5 to $15.0 per share, for an average of $13.58. At today's price of $10.73, Vertex Energy is trading -20.99% away from its average target price, suggesting there is an analyst consensus of strong upside potential.

Vertex Energy, Inc., an environmental services company, provides a range of services designed to aggregate, process, and recycle industrial and commercial waste systems in the Gulf Coast and Midwest regions of the United States. The small-cap Energy company is based in Houston, TX. Vertex Energy has offered a 0.0% dividend yield over the last 12 months.

Vertex Energy does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of 1.92, the company has a forward P/E ratio of 5.59. In comparison, the average P/E ratio for the Energy sector is 7.54. Furthermore, Vertex Energy is likely overvalued compared to its book value, since its P/B ratio of 4.037 is higher than the sector average of 1.68.

So why are analysts giving VTNR a good rating? We believe analysts could be encouraged by the company's impressive 22.68% rate of cash flow growth over the last 5 years. They likely put significant weight behind Vertex Energy's growth potential, as signaled by its 437.64% rate of revenue growth and capital expenditures that are growing at 1310.79%.