Delek US Holdings (DK) AI Stock Analysis

• Market Cap: $811.06M
• Dividend Yield: 8.79%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -28.68%
• EPS Growth: -4373.94%
• Country: US
• Employees: 1,987
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -10.38
• Shares Outstanding: 61,866,085
• 10 Day Avg. Volume: 1,529,504
• 30 Day Avg. Volume: 1,855,221
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.09
• Price to Cash Flow (P/CF): -1.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.23
• Price Target Upside: 39.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Delek US Holdings presents a mixed outlook with financial instability posing significant risks, as reflected by declining revenues and profitability challenges. However, strategic acquisitions and optimistic earnings guidance provide some optimism. The stock's technical indicators and valuation show bearish signals, cautioning against immediate investments despite a high dividend yield. Overall, the company must focus on improving its cash generation and operational efficiency to enhance stock performance.

Positive Factors

Cash Flow Improvement

The company is making significant progress in its Enterprise Optimization Plan and is now on track to achieve the higher end of the $80mm-120mm cash flow improvement target by 2H25.

Strategic Direction

The bull case for DK continues to rest on the long-term strategic direction for DKL and the unlocking of the sum-of-the-parts value, which Delek continues to make good progress on.

Negative Factors

Earnings Estimates

DK is expected to miss current consensus earnings estimates, with negative EBITDA and EPS, as lower crack spreads drove earnings downward.

Operational Performance

In Refining, crude oil throughput of 252k b/d was below consensus estimate of 259k b/d and below the 255k-269k b/d guidance range.

Tariff Impact

The implementation of a 10% tariff on Canadian oil products is expected to negatively impact the sector, but perhaps not significantly.

Delek US Holdings Business Overview & Revenue Model

Company Description

Delek US Holdings, Inc. (DK) is a diversified downstream energy company primarily engaged in petroleum refining, logistics, and the marketing of fuel products. Headquartered in Brentwood, Tennessee, Delek operates through three main segments: refining, logistics, and retail. The company owns and operates refineries in Texas, Arkansas, and Louisiana, and through its logistics segment, it manages transportation and storage operations. Delek also operates a network of retail fuel and convenience stores, offering a range of consumer goods and fuel products.

How the Company Makes Money

Delek US Holdings generates revenue through its three core segments. The refining segment is the largest revenue contributor, where the company processes crude oil into refined products like gasoline, diesel, and jet fuel, which are then sold to wholesale and retail customers. The logistics segment earns money by providing crude oil gathering, transportation, and storage services, as well as services related to refined product pipelines and terminals. Delek's retail segment generates income through the sale of fuel and convenience store merchandise at its retail locations. Key partnerships, such as supply agreements with major oil producers and distributors, enhance its operational capabilities and contribute to its overall earnings.

Delek US Holdings Financial Statement Overview

Summary

Delek US Holdings faces financial instability with declining revenues and profitability issues reflected in the TTM data. Operational improvements are evident in gross profit margin, yet significant challenges remain in achieving positive net income and cash flows. The balance sheet shows a stronger equity position, but ongoing profitability and cash flow issues pose risks. Strategic focus on improving operational efficiency and cash generation is essential for financial sustainability.

Income Statement

The income statement shows significant volatility with TTM (Trailing-Twelve-Months) data reflecting negative EBIT and net income margins of -0.40% and -4.65%, respectively. Revenue has fluctuated over the years with a recent decline from 2022 to 2023. Gross profit margin improved in TTM to 20.76%, indicating potential operational efficiency gains despite overall profitability challenges.

Balance Sheet

The balance sheet reflects a substantial improvement in the debt-to-equity ratio from 3.16 in 2023 to 0.19 in TTM, driven by a reduction in total debt and an increase in stockholders' equity. The equity ratio increased to 8.63% in TTM, providing a more balanced capital structure. However, low return on equity (ROE) in TTM indicates challenges in generating returns on shareholders' equity.

Cash Flow

The cash flow statement highlights negative free cash flow in TTM, signaling potential liquidity challenges. Operating cash flow to net income ratio is negative, indicating inefficiencies in converting income to cash. The free cash flow to net income ratio also deteriorated, underscoring difficulties in maintaining positive cash flows amidst operational losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.85B	16.92B	20.25B	10.65B	7.30B
	Gross Profit
-67.90M	1.04B	924.60M	171.80M	-243.00M
	EBIT
-491.50M	279.90M	489.50M	-130.40M	-728.00M
	EBITDA
-18.50M	664.00M	899.30M	324.60M	-336.10M
	Net Income Common Stockholders
-560.40M	19.80M	257.10M	-170.50M	-570.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
735.60M	822.20M	841.30M	856.50M	787.50M
	Total Assets
6.67B	7.17B	8.19B	6.73B	6.13B
	Total Debt
107.50M	2.77B	3.23B	2.42B	2.53B
	Net Debt
-628.10M	1.94B	2.38B	1.57B	1.74B
	Total Liabilities
6.09B	6.21B	7.12B	5.78B	5.01B
	Stockholders Equity
575.20M	845.50M	943.60M	827.70M	1.01B
Cash Flow		Free Cash Flow
-497.40M	589.70M	113.90M	148.20M	-555.10M
	Operating Cash Flow
-66.80M	1.01B	425.30M	371.40M	-282.90M
	Investing Cash Flow
-603.20M	-408.00M	-931.60M	-178.40M	-191.30M
	Financing Cash Flow
221.70M	-624.70M	491.10M	-124.00M	306.40M

Delek US Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DK, the sentiment is Negative. The current price of 13.11 is below the 20-day moving average (MA) of 15.10, below the 50-day MA of 16.09, and below the 200-day MA of 18.33, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 45.37 is Neutral, neither overbought nor oversold. The STOCH value of 13.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DK.

Delek US Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	76 Outperform	$8.08B	8.82	28.38%	6.97%	-1.63%	80.11%
PARR	58 Neutral	$750.04M	3.02	-2.64%	―	-3.13%	-105.02%
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%
CAPL	56 Neutral	$830.46M	41.87	666.62%	9.65%	-6.57%	-50.55%
CVI	55 Neutral	$1.77B	252.59	0.90%	12.39%	-17.69%	-99.09%
PBF	48 Neutral	$1.90B	―	-8.87%	7.31%	-13.59%	-127.47%
DK	47 Neutral	$811.06M	―	-108.21%	8.79%	-28.68%	-4373.94%

Delek US Holdings Corporate Events

Delek US Holdings Appoints New Executive VP and CFO

Delek US Holdings, Inc. and Delek Logistics Partners, LP announced that Robert Wright will serve as Executive Vice President and Chief Financial Officer of the Partnership starting April 1, 2025. He will also be promoted to Executive Vice President of the Company on November 15, 2025, while Mark Hobbs will continue as the Company’s CFO. Wright’s compensation package includes a base salary increase and a long-term incentive award, with provisions for severance if his promotion does not occur by the specified date.

Delek US Holdings Announces Common Unit Repurchase Agreement

On February 24, 2025, Delek Logistics Partners, LP entered into a Common Unit Purchase Agreement with Delek US Holdings, Inc., allowing the repurchase of common units for up to $150 million through December 31, 2026. This strategic move, approved by the Board and independent committees, aims to enhance Delek Logistics’ cash flow and provide a tax-efficient method for Delek US to progress its Sum of the Parts goals. In 2024, Delek US faced a net loss of $413.8 million but made significant strides in improving profitability, including asset sales and strategic acquisitions. The company announced an Enterprise Optimization Plan expected to increase profitability by $120 million, and Delek Logistics reported a strong full-year EBITDA guidance. Despite challenging market conditions, Delek US aims to continue enhancing shareholder value and financial strength.

Delek US Appoints Reuven Spiegel as Executive VP

On February 19, 2025, Delek US Holdings, Inc. announced that Reuven Spiegel will take on the role of Executive Vice President, Delek Logistics, effective February 12, 2025, while transitioning from his position as Chief Financial Officer on March 1, 2025. Mr. Spiegel’s extensive experience includes serving as CEO of Israel Discount Bank and IDB Bank of NY, and his new role may enhance Delek’s strategic positioning within the logistics sector.