Today we're going to take a closer look at Large-Cap Energy company PBF Energy, whose shares are currently trading at $12.39. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
an Increase in Expected Earnings Improves Its Value Outlook but Trades Above Its Graham Number:
Petróleo Brasileiro S.A. - Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 18.35 and an average price to book (P/B) ratio of 1.6. In contrast, PBF Energy has a trailing 12 month P/E ratio of 5.8 and a P/B ratio of 2.18.
PBF Energy has moved -18.0% over the last year compared to 17.2% for the S&P 500 — a difference of -35.2%. PBF Energy has a 52 week high of $15.34 and a 52 week low of $11.03.
Healthy Leverage Levels but Not Enough Current Assets to Cover Current Liabilities:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $76,589 | $53,683 | $83,966 | $124,474 | $102,409 | $91,416 |
| Gross Margins | 40% | 46% | 49% | 52% | 53% | 50% |
| Net Margins | 14% | 2% | 24% | 30% | 24% | 8% |
| Net Income (M) | $10,363 | $948 | $19,986 | $36,755 | $24,995 | $7,605 |
| Diluted Shares (M) | 7,442 | 7,442 | 7,442 | 7,442 | 7,442 | 7,442 |
| Earnings Per Share | $1.39 | $0.13 | $1.52 | $2.81 | $1.91 | $0.58 |
| EPS Growth | n/a | -90.64748201438849% | 1069.2307692307693% | 84.86842105263158% | -32.028469750889684% | -69.63350785340315% |
| Free Cash Flow (M) | $25,600 | $15,656 | $19,724 | $24,913 | $23,223 | $19,511 |
| Total Debt (M) | $58,791 | $49,702 | $32,059 | $26,378 | $24,479 | $20,596 |
| Net Debt / EBITDA | 1.45 | 1.77 | 0.44 | 0.26 | 0.23 | 0.44 |
| Current Ratio | 0.97 | 1.04 | 1.25 | 1.0 | 0.96 | 0.69 |
PBF Energy has declining EPS growth, positive cash flows, and not enough current assets to cover current liabilities because its current ratio is 0.69. On the other hand, the company has healthy leverage levels working in its favor. Furthermore, PBF Energy has similar gross margins to its peers.
