GICS Sector : Basic Materials
CVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States.The company offers ammonia products for agricultural and industrial customers; and urea and ammonium nitrate products to agricultural customers, as well as retailers and distributors.CVR GP, LLC serves as the general partner of the company.
CVR Partners reported net sales of $164 million, net income of $43 million, and EBITDA of $71 million for the third quarter. The company's consolidated ammonia plant utilization was 95%, resulting in combined ammonia production of 208,000 gross tons and UAN production of 337,000 tons. Notably, UAN and ammonia prices increased 52% and 33%, respectively, from the prior year period, driving revenue growth. Direct operating expenses were $58 million, and capital spending was $13 million. The company ended the quarter with total liquidity of $206 million.
Publication Date: Nov -26
The company's operational performance was strong, with high ammonia plant utilization and increased production volumes. The Coffeyville facility is currently undergoing a planned turnaround, which is expected to resume full production in a few weeks. CVR Partners continues to work on projects to improve reliability and production rates, including a project to allow the Coffeyville plant to utilize natural gas and additional hydrogen from the adjacent Coffeyville refinery as alternative feedstocks.
For the fourth quarter, CVR Partners estimates ammonia utilization to be between 80% and 85%, direct operating expenses to be between $58 million and $63 million, and total capital spending to be between $30 million and $35 million. The company is optimistic about the remainder of the year and into 2026, citing tight domestic and global inventories of nitrogen fertilizer, which have been supportive of higher prices. As per the management, the tight inventories are expected to continue supporting higher prices.
CVR Partners' current valuation metrics indicate a 'P/E Ratio' of 7.85, 'P/B Ratio' of 3.14, 'P/S Ratio' of 1.63, and 'EV/EBITDA' of 5.21. The 'Dividend Yield (%)' is 12.61%, indicating a relatively attractive yield for income investors. The 'ROIC (%)' is 19.72%, and 'ROE (%)' is 41.38%, suggesting strong profitability. The 'Net Debt / EBITDA' ratio is 1.52, indicating a manageable debt burden.
The actual EPS came out at '-1.7' relative to estimates at '-0.33', indicating a negative surprise. Analysts' estimates for next year's revenue growth are not available. The stock's current valuation multiples suggest that the market is pricing in a certain level of earnings growth and profitability. However, the negative EPS surprise may impact investor sentiment.
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Oct -30
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Growing demand for crop nutrition and plant growth, increasing adoption of precision agriculture, and rising need for sustainable farming practices drive the growth of the UAN market.
Growing demand for ammonia-based fertilizers in agriculture, increasing adoption in industrial applications, and rising natural gas production drive the market growth.
The freight segment of CVR Partners, LP is expected to grow driven by increasing demand for fertilizer and ammonia, expansion of production capacity, and rising transportation costs.
Growing demand for fertilizers in agriculture, increasing adoption of precision farming, and rising industrial applications drive the growth of CVR Partners' Urea Products segment.
The 'Other' segment of CVR Partners, LP is expected to grow driven by increasing demand for nitrogen fertilizers, expansion of the nitrogen fertilizer plant, and diversification of revenue streams through miscellaneous income.
CVR Partners, LP produces nitrogen fertilizers, including ammonia, urea ammonium nitrate (UAN) and ammonium nitrate (AN) for agricultural and industrial applications.
CVR Partners, LP produces sulfuric acid, a strong acid used in various industrial processes.
CVR Partners, LP produces anhydrous ammonia, a key ingredient in the production of nitrogen fertilizers.
CVR Partners, LP produces UAN, a liquid fertilizer used in agriculture.
CVR Partners, LP produces AN, a nitrogen-based fertilizer used in agriculture.
The threat of substitutes for CVR Partners, LP is moderate due to the availability of alternative products and services in the energy industry.
The bargaining power of customers for CVR Partners, LP is low due to the company's strong market position and limited customer concentration.
The bargaining power of suppliers for CVR Partners, LP is moderate due to the presence of multiple suppliers in the energy industry.
The threat of new entrants for CVR Partners, LP is high due to the relatively low barriers to entry in the energy industry.
The intensity of rivalry for CVR Partners, LP is high due to the competitive nature of the energy industry and the presence of several established players.
| Value | |
|---|---|
| Debt Weight | 64.51% |
| Debt Cost | 5.24% |
| Equity Weight | 35.49% |
| Equity Cost | 10.53% |
| WACC | 7.12% |
| Leverage | 181.75% |
Value: 9.2
Growth: 3.1
Quality: 7.5
Yield: 10.0
Momentum: 4.0
Volatility: 10.0
1-Year Total Return ->
Value: 7.3
Growth: 4.7
Quality: 5.9
Yield: 10.0
Momentum: 8.0
Volatility: 7.7
1-Year Total Return ->
Value: 5.8
Growth: 9.0
Quality: 7.0
Yield: 4.0
Momentum: 10.0
Volatility: 6.0
1-Year Total Return ->
Value: 7.0
Growth: 6.3
Quality: 5.1
Yield: 2.0
Momentum: 8.5
Volatility: 3.7
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Value: 1.6
Growth: 8.2
Quality: 8.5
Yield: 0.0
Momentum: 8.0
Volatility: 5.7
1-Year Total Return ->
Value: 7.6
Growth: 1.8
Quality: 3.5
Yield: 0.0
Momentum: 7.5
Volatility: 4.3
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