Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, petroleum refiner CVR Energy (NYSE: CVI ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at CVR's business and see what CAPS investors are saying about the stock right now.
CVR facts
| Headquarters (founded) |
Sugar Land, Texas |
| Market Cap |
$1.9 billion |
| Industry |
Oil and gas refining and marketing |
| Trailing-12-Month Revenue |
$5.12 billion |
| Management |
Chairman/CEO John Lipinski
CFO Edward Morgan |
| Return on Equity (average, past 3 years) |
15.4% |
| Cash/Debt |
$898.5 million / $594.2 million |
| Competitors |
BP (NYSE: BP )
ConocoPhillips (NYSE: COP )
Valero Energy (NYSE: VLO ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 383 members who have rated CVR believe the stock will outperform the S&P 500 going forward. These bulls include TMFDeej, who is ranked in the top 1% of our community, and Seansonfire.
This past summer, TMFDeej tapped CVR as a special opportunity:
I don't particularly like refiners (understatement), but they're making money hand over fist right now, mainly as a result of the huge spread between Brent and WTI. ... [O]nce the company's stake in the extremely attractive [CVR Partners (NYSE: UAN ) ] is backed out of CVR is cheap. Add its growing logistics business into the equation and you have one attractive situation.
Over the past five years, in fact, CVR has grown its top line at a solid rate of 11% annually. That's faster than much larger competitors like BP (6%), Conoco (5%), and Valero (4%).
CAPS member Seansonfire elaborates on the bull case:
Crack Spreads for [CVR] are wide as they take in WTI and Canadian oil sands due to the high complexity of their Coffeyville Refinery and put out over 50% gasoline. The addition of a second refinery location in Wynnewood, Okla with a throughput of 70,000 bdp will add some cashflows, but the margins may be smaller than their Coffeyville Refinery. Overall [CVR] is making some great moves and is currently undervalued.
No brainer, that this was a buy at $20 a share and will continue to be a buy upwards of $35 a share.
What do you think about CVR, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track CVR? Add it to your watchlist.
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