In a market where value is scarce, NYSE:PARR offers a refreshing opportunity with its solid fundamentals.

Our stock screening tool has pinpointed PAR PACIFIC HOLDINGS INC (NYSE:PARR) as an undervalued stock. NYSE:PARR maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Assessment of NYSE:PARR

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:PARR has achieved a 8 out of 10:

• A Price/Earnings ratio of 3.58 indicates a rather cheap valuation of PARR.
• Compared to the rest of the industry, the Price/Earnings ratio of PARR indicates a rather cheap valuation: PARR is cheaper than 88.64% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 23.44, PARR is valued rather cheaply.
• A Price/Forward Earnings ratio of 6.91 indicates a rather cheap valuation of PARR.
• Based on the Price/Forward Earnings ratio, PARR is valued a bit cheaper than 74.55% of the companies in the same industry.
• PARR is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.82, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, PARR is valued cheaply inside the industry as 83.18% of the companies are valued more expensively.
• PARR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PARR is cheaper than 90.91% of the companies in the same industry.
• PARR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Exploring NYSE:PARR's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:PARR scores 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 73.64% of the companies in the same industry.
• PARR has a better Return On Equity (67.44%) than 90.45% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 30.41%, PARR belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
• 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

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:PARR was assigned a score of 6 for health:

• An Altman-Z score of 3.19 indicates that PARR is not in any danger for bankruptcy at the moment.
• PARR's Altman-Z score of 3.19 is fine compared to the rest of the industry. PARR outperforms 75.00% of its industry peers.
• 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.
• The Debt to FCF ratio of PARR (0.86) is better than 84.55% of its industry peers.
• Although PARR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

How do we evaluate the Growth for NYSE:PARR?

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:PARR was assigned a score of 6 for growth:

• PARR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 172.89%, which is quite impressive.
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of PARR contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.