For those who appreciate value investing, NYSE:PARR is a compelling option with its solid fundamentals.

Last update: Feb 8, 2024

Our stock screening tool has pinpointed PAR PACIFIC HOLDINGS INC (NYSE:PARR) as an undervalued stock option. NYSE:PARR retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

How do we evaluate the Valuation for NYSE:PARR?

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:PARR, the assigned 8 reflects its valuation:

PARR is valuated cheaply with a Price/Earnings ratio of 4.07.
Based on the Price/Earnings ratio, PARR is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
PARR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.88.
With a Price/Forward Earnings ratio of 8.31, the valuation of PARR can be described as very reasonable.
68.37% of the companies in the same industry are more expensive than PARR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.46, PARR is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PARR indicates a somewhat cheap valuation: PARR is cheaper than 74.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PARR is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
PARR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:PARR, the assigned 5 is a significant indicator of profitability:

With a decent Return On Assets value of 13.47%, PARR is doing good in the industry, outperforming 69.77% of the companies in the same industry.
PARR has a better Return On Equity (48.91%) than 86.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.21%, PARR belongs to the top of the industry, outperforming 86.98% of the companies in the same industry.
In the last couple of years the Profit Margin of PARR has grown nicely.
PARR's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of PARR has grown nicely.

Unpacking NYSE:PARR's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:PARR has earned a 6 out of 10:

An Altman-Z score of 3.19 indicates that PARR is not in any danger for bankruptcy at the moment.
PARR has a better Altman-Z score (3.19) than 75.81% of its industry peers.
PARR has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.92, PARR belongs to the top of the industry, outperforming 84.19% of the companies in the same industry.
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.

What does the Growth looks like 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:

PARR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.51%, which is quite impressive.
PARR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.98% yearly.
The Revenue has grown by 15.44% in the past year. This is quite good.
Measured over the past years, PARR shows a very strong growth in Revenue. The Revenue has been growing by 24.55% on average per year.

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

Disclaimer

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.