Why CVR Partners Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen fertilizer producer CVR Partners (NYSE: UAN  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at CVR and see what CAPS investors are saying about the stock right now.

CVR facts

Headquarters (founded)

Sugar Land, Texas (2007)

Market Cap

$1.8 billion

Industry

Fertilizers and agricultural chemicals

Trailing-12-Month Revenue

$305.4 million

Management

CEO Byron Kelley (since 2011)

CFO Susan Ball (since 2012)

Trailing-12-Month Return on Equity

24.8%

Cash/Debt

$153.2 million / $127.5 million

Dividend Yield

10%

Competitors

Agrium

CF Industries

Terra Nitrogen 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 99% of the 341 members who have rated CVR believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star PsychoDr, succinctly summed up the CVR bull case for our community:

I like the potential of this company. Their stock took a bit of a hit recently, but it had nothing to do with fundamentals. In fact recent earnings were depressed as company built out capacity to refine more [urea ammonium nitrate] than they had in the past. This is important because [urea ammonium nitrate] is the next step in fertilizer production and has significantly higher profit margin. I also like their dividend policy which I will leave for you to research.   

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, CVR may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 08, 2013, at 7:12 PM, rtf268 wrote:

    may be worthwhile to consider further, based on Lehmans letter, but another k-1at tax time???

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2467759, ~/Articles/ArticleHandler.aspx, 8/23/2014 11:36:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement