Genesis Energy, L.P. Fundamental Analysis (NYSE: GEL)
Genesis Energy, L.P. (NYSE: GEL) shows weak financial fundamentals with a PE ratio of 64.60, profit margin of 3.85%, and ROE of -3.96%. The company generates $1.9B in annual revenue with weak year-over-year growth of -45.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 346.1/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze GEL's fundamental strength across five key dimensions:
Efficiency Score
WeakGEL struggles to generate sufficient returns from assets.
Valuation Score
ModerateGEL shows balanced valuation metrics.
Growth Score
ModerateGEL shows steady but slowing expansion.
Financial Health Score
ModerateGEL shows balanced financial health with some risks.
Profitability Score
WeakGEL struggles to sustain strong margins.
Key Financial Metrics
Is GEL Expensive or Cheap?
P/E Ratio
GEL trades at 64.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GEL's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Genesis Energy, L.P. at -36.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.52 times EBITDA. This is generally considered low.
How Well Does GEL Make Money?
Net Profit Margin
For every $100 in sales, Genesis Energy, L.P. keeps $3.85 as profit after all expenses.
Operating Margin
Core operations generate 18.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.96 in profit for every $100 of shareholder equity.
ROA
Genesis Energy, L.P. generates $1.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Genesis Energy, L.P. produces operating cash flow of $456.73M, showing steady but balanced cash generation.
Free Cash Flow
Genesis Energy, L.P. generates strong free cash flow of $347.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.85 in free cash annually.
FCF Yield
GEL converts 22.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
64.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
-36.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-75.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-3.96
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How GEL Stacks Against Its Sector Peers
| Metric | GEL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 64.60 | 19.76 | Worse (Expensive) |
| ROE | -395.55% | 1390.00% | Weak |
| Net Margin | 3.85% | 1351.00% | Weak |
| Debt/Equity | -75.50 | -1.76 (disorted) | Distorted |
| Current Ratio | 0.92 | 2.18 | Weak Liquidity |
| ROA | 1.38% | 7540.00% | Weak |
GEL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Genesis Energy, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-10.56%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
98.03%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-7.17%
Industry Style: Cyclical, Value, Commodity
Declining