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%.

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $136 $134 $117 $2,712
Revenue Growth n/a -1.28% -13.04% 2227.41%
Gross Margins 0.7% 0.78% 21.4% 6.64%
Gross Margins Growth n/a 11.43% 2643.59% -68.97%
Operating Margins -4.21% -5.34% -8.14% 1.79%
Operating Margins Growth n/a -26.84% -52.43% 121.99%
Earnings Per Share -$0.12 -$0.26 -$0.29 -$0.06
EPS Growth n/a -116.67% -11.54% 79.31%
Diluted Shares (MM) 43 46 63 76
Free Cash Flow (MM) -$1 -$7 $16 $66
FCF Growth n/a -388.13% 335.39% 314.27%
Capital Expenditures (MM) $4 $7 $1 $76
Net Debt / EBITDA -3.93 -1.19 -2.1 0.79
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.