HF Sinclair Corporation (DINO) AI Stock Analysis

• Market Cap: $9.95B
• Dividend Yield: 3.7%
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): 35.1
• Beta (1Y): 1.06
• Revenue Growth: -14.58%
• EPS Growth: -107.50%
• Country: US
• Employees: 5,297
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 1.70
• Shares Outstanding: 187,080,570
• 10 Day Avg. Volume: 2,436,937
• 30 Day Avg. Volume: 2,386,323
• PEG Ratio: -0.43
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 10.52
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: 10.73
• 1Y Price Target: $53.09
• Price Target Upside: -1.70% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: $55.00 ▲(1.83% Upside)

HF Sinclair Corporation's stock score is driven by strong earnings call results and positive technical indicators, despite challenges in financial performance and valuation concerns. The company's strategic focus on shareholder returns and operational improvements in key segments supports a moderately positive outlook.

Positive Factors

Cash Flow Generation

Strong cash flow growth indicates robust cash generation capabilities, providing a buffer against operational challenges and supporting long-term investments.

Refining Segment Performance

The substantial improvement in refining segment performance reflects enhanced operational efficiency and market positioning, contributing to sustainable profitability.

Shareholder Returns

Consistent shareholder returns through dividends and buybacks demonstrate strong capital management and commitment to enhancing shareholder value.

Negative Factors

Revenue Decline

Declining revenue growth poses challenges to long-term expansion and market competitiveness, necessitating strategic adjustments to reverse the trend.

Renewables Segment Challenges

Persistent challenges in the renewables segment indicate difficulties in adapting to market demands, affecting overall diversification and growth potential.

Margin Pressure

Decreasing gross profit margins highlight cost management issues, which could impact profitability and necessitate operational improvements.

HF Sinclair Corporation Business Overview & Revenue Model

Company Description

HF Sinclair Corporation operates as an independent energy company. It produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. The company also owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states. In addition, it supplies fuels to approximately 1,300 independent Sinclair-branded stations and licenses the use of the Sinclair brand at approximately 300 additional locations, as well as engages in the growing renewables business. Further, the company produces base oils and other specialized lubricants; and provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum industry. HF Sinclair Corporation was incorporated in 2021 and is headquartered in Dallas, Texas.

How the Company Makes Money

HF Sinclair Corporation generates revenue primarily through its refining operations, which involves the conversion of crude oil into various refined products that are sold to wholesale and retail customers. Key revenue streams include the sale of gasoline, diesel, and jet fuel, as well as other petrochemical products. Additionally, the company earns income from its transportation and logistics services, which facilitate the movement of crude oil and finished products. Strategic partnerships with crude oil suppliers and distribution networks play a vital role in optimizing operational efficiency and enhancing profitability. Market dynamics, including crude oil prices and refining margins, significantly influence the company's overall earnings.

HF Sinclair Corporation Financial Statement Overview

Summary

HF Sinclair Corporation faces challenges in revenue growth and profitability, with declining margins and negative net income. However, the company maintains a stable balance sheet with moderate leverage and a strong equity position. Cash flow generation has improved significantly, providing a buffer against operational challenges.

Income Statement

HF Sinclair Corporation's income statement shows a challenging environment with declining revenue and profitability. The TTM data indicates a negative net profit margin of -0.32%, reflecting a loss. The gross profit margin has decreased to 6.64% from higher levels in previous years, indicating pressure on cost management. Revenue growth has been negative, with a -3.80% decline in the TTM period. These factors suggest a need for strategic adjustments to improve profitability and growth.

Balance Sheet

The balance sheet of HF Sinclair Corporation shows moderate leverage with a debt-to-equity ratio of 0.29 in the TTM period, which is a positive sign of financial stability. However, the return on equity has turned negative at -0.91%, indicating inefficiencies in generating returns for shareholders. The equity ratio remains strong at around 55.5%, suggesting a solid capital structure despite recent challenges.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth of 68.87% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.38, suggesting that cash flows are relatively stable compared to earnings. The free cash flow to net income ratio is high at 0.77, highlighting efficient cash management despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.86B	28.58B	31.96B	38.20B	18.39B	11.18B
Gross Profit	1.78B	3.21B	5.14B	6.82B	2.63B	649.86M
EBITDA	938.25M	1.22B	3.12B	4.77B	1.42B	-99.61M
Net Income	-85.45M	177.00M	1.59B	2.92B	558.32M	-601.45M
Balance Sheet
Total Assets	16.84B	16.64B	17.72B	18.13B	12.92B	11.51B
Cash, Cash Equivalents and Short-Term Investments	874.00M	800.00M	1.35B	1.67B	234.44M	1.37B
Total Debt	2.68B	3.10B	3.18B	3.72B	3.60B	3.58B
Total Liabilities	7.50B	7.30B	7.48B	8.11B	6.62B	5.78B
Stockholders Equity	9.35B	9.28B	10.17B	9.24B	5.69B	5.17B
Cash Flow
Free Cash Flow	818.71M	640.00M	1.91B	3.25B	-406.73M	127.77M
Operating Cash Flow	1.07B	1.11B	2.30B	3.78B	406.68M	457.93M
Investing Cash Flow	-487.46M	-468.00M	-371.32M	-774.49M	-1.33B	-330.16M
Financing Cash Flow	-569.26M	-1.18B	-2.24B	-1.56B	-211.80M	353.23M

HF Sinclair Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DINO, the sentiment is Positive. The current price of 54.01 is above the 20-day moving average (MA) of 52.01, above the 50-day MA of 47.55, and above the 200-day MA of 37.87, indicating a bullish trend. The MACD of 1.66 indicates Positive momentum. The RSI at 71.66 is Negative, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DINO.

HF Sinclair Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLO	73 Outperform	53.07B	70.84	3.17%	2.56%	-11.72%	-86.21%
PSX	69 Neutral	55.20B	32.87	6.25%	3.38%	-12.80%	-64.40%
DINO	65 Neutral	$9.95B	35.13	-0.93%	3.70%	-14.58%	-107.50%
MPC	65 Neutral	58.71B	28.61	12.83%	1.85%	-10.03%	-64.63%
CVI	56 Neutral	3.50B	-10.86	-71.24%	7.67%	-15.98%	-160.88%
PBF	51 Neutral	3.72B	-3.90	-9.63%	3.28%	-18.73%	-236.79%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%