NYSE:PARR is an undervalued gem with solid fundamentals.

Last update: Oct 18, 2023

PAR PACIFIC HOLDINGS INC (NYSE:PARR) was identified as a decent value stock by our stock screener. NYSE:PARR scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Assessing Valuation for NYSE:PARR

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:PARR has earned a 8 for valuation:

With a Price/Earnings ratio of 3.60, the valuation of PARR can be described as very cheap.
89.45% of the companies in the same industry are more expensive than PARR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PARR to the average of the S&P500 Index (26.01), we can say PARR is valued rather cheaply.
A Price/Forward Earnings ratio of 7.50 indicates a rather cheap valuation of PARR.
PARR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PARR is cheaper than 73.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PARR to the average of the S&P500 Index (19.05), we can say PARR is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, PARR is valued cheaper than 83.49% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PARR is valued cheaply inside the industry as 92.20% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:PARR has earned a 5 out of 10:

Looking at the Return On Assets, with a value of 17.18%, PARR is in the better half of the industry, outperforming 70.64% of the companies in the same industry.
PARR has a better Return On Equity (67.44%) than 89.45% of its industry peers.
PARR has a Return On Invested Capital of 30.41%. This is amongst the best in the industry. PARR outperforms 88.07% of its industry peers.
PARR's Profit Margin has improved in the last couple of years.
In the last couple of years the Operating Margin of PARR has grown nicely.
In the last couple of years the Gross Margin of PARR has grown nicely.

Unpacking NYSE:PARR's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PARR has received a 6 out of 10:

PARR has an Altman-Z score of 3.19. This indicates that PARR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, PARR is in the better half of the industry, outperforming 72.02% of the companies in the same industry.
PARR has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
PARR has a better Debt to FCF ratio (0.86) than 83.03% of its industry peers.
Even though the debt/equity ratio score it not favorable for PARR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

How do we evaluate the Growth for NYSE:PARR?

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:PARR has achieved a 6 out of 10:

The Earnings Per Share has grown by an impressive 172.89% over the past year.
Measured over the past years, PARR shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.98% on average per year.
PARR shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.02%.
PARR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.55% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of PARR

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.