Icahn Enterprises logged a -8.4% change during today's morning session, and is now trading at a price of $36.98 per share.
Icahn Enterprises returned losses of -24.9% last year, with its stock price reaching a high of $55.55 and a low of $36.32. Over the same period, the stock underperformed the S&P 500 index by -21.0%. As of April 2023, the company's 50-day average price was $51.84. Icahn Enterprises L.P., through its subsidiaries, operates in investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. Based in Sunny Isles Beach, FL, the large-cap Industrials company has 20,041 full time employees. Icahn Enterprises has returned a 19.8% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $10,386 | $7,423 | $10,941 | $14,126 |
| Revenue Growth | n/a | -28.53% | 47.39% | 29.11% |
| Gross Margins | 20.9% | 14.9% | 13.3% | 17.2% |
| Gross Margins Growth | n/a | -28.71% | -10.74% | 29.32% |
| Operating Margins | 2.7% | -7.8% | -2.7% | 4.3% |
| Operating Margins Growth | n/a | -388.89% | 65.38% | 259.26% |
| Net Margins | -10.57% | -22.27% | -4.73% | -1.3% |
| Net Margins Growth | n/a | -110.69% | 78.76% | 72.52% |
| Earnings Per Share | -$5.38 | -$7.33 | -$2.32 | -$0.46 |
| EPS Growth | n/a | -36.25% | 68.35% | 80.17% |
| Diluted Shares (MM) | 200 | 221 | 260 | 354 |
| Free Cash Flow (MM) | -$1,710 | -$615 | $16 | $717 |
| FCF Growth | n/a | 64.04% | 102.6% | 4381.25% |
| Capital Expenditures (MM) | -$250 | -$199 | -$305 | -$338 |
| Net Debt / EBITDA | nan | nan | 11.99 | 7.97 |
Icahn Enterprises 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 $0.74, the company has a forward P/E ratio of 70.1. In comparison, the average P/E ratio for the Industrials sector is 20.49. On the other hand, the market is undervaluing Icahn Enterprises in terms of its equity because its P/B ratio is 2.8. In comparison, the sector average is 3.78. In conclusion, Icahn Enterprises's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Icahn Enterprises Is the Subject of Mixed Market Indicators:
Icahn Enterprises has a very low short interest because 1.7% of the company's shares are sold short. Institutions own 89.7% of the company's shares, and the insider ownership rate stands at 0.16%, suggesting a small amount of insider investors. The largest shareholder is Icahn, Carl, C., whose 85% stake in the company is worth $11,094,032,160.
