Delek US Holdings, Inc. Fundamental Analysis (NYSE: DK)
Delek US Holdings, Inc. (NYSE: DK) shows moderate financial fundamentals with a PE ratio of 16.66, profit margin of 1.86%, and ROE of 95.27%. The company generates $12.1B in annual revenue with weak year-over-year growth of -9.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DK's fundamental strength across five key dimensions:
Efficiency Score
WeakDK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDK trades at attractive valuation levels.
Growth Score
ModerateDK shows steady but slowing expansion.
Financial Health Score
ModerateDK shows balanced financial health with some risks.
Profitability Score
ModerateDK maintains healthy but balanced margins.
Key Financial Metrics
Is DK Expensive or Cheap?
P/E Ratio
DK trades at 16.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DK's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Delek US Holdings, Inc. at 8.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.42 times EBITDA. This is generally considered low.
How Well Does DK Make Money?
Net Profit Margin
For every $100 in sales, Delek US Holdings, Inc. keeps $1.86 as profit after all expenses.
Operating Margin
Core operations generate 5.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $95.27 in profit for every $100 of shareholder equity.
ROA
Delek US Holdings, Inc. generates $2.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Delek US Holdings, Inc. produces operating cash flow of $1.28B, showing steady but balanced cash generation.
Free Cash Flow
Delek US Holdings, Inc. produces free cash flow of $863.31M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $14.09 in free cash annually.
FCF Yield
DK converts 23.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.95
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How DK Stacks Against Its Sector Peers
| Metric | DK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.66 | 21.33 | Better (Cheaper) |
| ROE | 95.27% | 1194.00% | Weak |
| Net Margin | 1.86% | 1198.00% | Weak |
| Debt/Equity | 0.18 | 2.82 | Strong (Low Leverage) |
| Current Ratio | 0.76 | 1.76 | Weak Liquidity |
| ROA | 2.97% | 477.00% | Weak |
DK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Delek US Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.05%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
95.48%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
336.36%
Industry Style: Cyclical, Value, Commodity
High Growth