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
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.
|Headquarters (founded)||Sugar Land, Texas (2007)|
|Market Cap||$1.82 billion|
|Trailing-12-Month Revenue||$223.89 million|
CFO Edward Morgan (since 2009)
COO Stanley Riemann (since 2006)
|Trailing-12-Month Operating Margin||20.6%|
|Cash/Debt||$229.8 million / $125 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
This past summer, kenjotto touched on the tailwinds working in CVR's favor: "[T]he US will only need more and more fertilizer. With their significant cost advantages due to using pet coke and limited need for nat gas, their profit margins should be high for a long time to come."
Currently, CVR even sports a solid debt-to-equity of 26%. That's lower than that of rivals like Agrium (43%), CF Industries (30%), and PotashCorp (61%).
CAPS member FoolishMikee elaborates on the bull case:
As their primary raw material feedstock is pet coke and not nat. gas, they have a cost advantage as pet coke per ton of ammonia produced is lower than natural gas (page 9 of prospectus for more details) and aren't susceptible to natural gas price fluctuations.
Economies of scale related to the industry: plant located in key position to both cost cut and reap economies of scales of the industry, as well as having good logistics and having a cheaper transportation cost. ...
Management Tenure: I won't break down every executive officer individually but management has decades of experience in their respective positions of industry. ...
The main concern is the dividend, however, good management tenure, strong cost advantages make it a good company for the long term to flatten out the short term stock fluctuation. Thumbs up.
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