Delek US Holdings (DK) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: 3.11%
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -29.94%
• EPS Growth: -723.41%
• Country: US
• Employees: 1,987
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.56
• Shares Outstanding: 60,152,410
• 10 Day Avg. Volume: 2,088,444
• 30 Day Avg. Volume: 2,494,782
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: -21.59
• Enterprise Value/Ebitda: -19.33
• 1Y Price Target: $28.67
• Price Target Upside: -12.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 51 Neutral
• Price Target: $24.50 ▼(-25.28% Downside)

Delek US Holdings' overall stock score is primarily impacted by significant financial challenges, including negative margins and high leverage. While technical indicators show moderate bullish momentum, the valuation is weak due to negative earnings. The earnings call provides a balanced view with strategic progress but ongoing financial hurdles.

Positive Factors

Enterprise Optimization Plan

The increased guidance for the Enterprise Optimization Plan indicates strategic progress and operational efficiency, which can enhance profitability and competitiveness in the long term.

Operational Achievements

Record throughput and refinery performance highlight operational strength, suggesting improved production efficiency and potential for sustained revenue growth.

Financial Liquidity

Enhanced financial liquidity provides Delek with the flexibility to invest in growth opportunities and withstand economic fluctuations, supporting long-term stability.

Negative Factors

Net Loss

The net loss indicates ongoing financial challenges, which can hinder investment capacity and shareholder returns, affecting long-term growth prospects.

Negative Cash Flows

Negative cash flows suggest liquidity issues, limiting the company's ability to fund operations and growth initiatives, posing a risk to financial health.

High Leverage

High leverage increases financial risk and interest obligations, potentially constraining operational flexibility and impacting long-term sustainability.

Delek US Holdings Business Overview & Revenue Model

Company Description

Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates through three segments: Refining, Logistics, and Retail. The Refining segment processes crude oil and other feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminal. It owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as three biodiesel facilities in Crossett, Arkansas, Cleburne, Texas, and New Albany. The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties. It owns or leases capacity on approximately 400 miles of crude oil transportation pipelines, approximately 450 miles of refined product pipelines, an approximately 900-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 10.2 million barrels of active shell capacity; and owns and operates ten light product distribution terminals, as well as markets light products using third-party terminals. The Retail segment owns and leases 248 convenience store sites located primarily in West Texas and New Mexico. Its convenience stores offer various grades of gasoline and diesel under the DK or Alon brand; and food products and service, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise, as well as money orders to the public primarily under the 7-Eleven and DK or Alon brand names. It serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, the U.S. government, and independent retail fuel operators. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.

How the Company Makes Money

Delek US Holdings generates revenue primarily through the sale of refined petroleum products, which are produced at its refineries. The refining segment earns money by transforming crude oil into gasoline, diesel, and other petrochemicals, which are then sold to wholesalers, distributors, and directly to retail outlets. The logistics segment contributes to revenue by charging fees for the transportation and storage of crude oil and refined products, leveraging its pipeline systems and terminal facilities. Additionally, the retail segment generates income from fuel sales and in-store merchandise. Strategic partnerships with suppliers and other energy companies also enhance its distribution capabilities and can lead to increased revenue opportunities.

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 the 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.82B	11.85B	16.92B	20.25B	10.65B	7.30B
Gross Profit	-190.90M	0.00	1.04B	924.60M	171.80M	-243.00M
EBITDA	-213.30M	-18.50M	664.00M	899.30M	324.60M	-336.10M
Net Income	-769.70M	-560.40M	19.80M	257.10M	-170.50M	-570.40M
Balance Sheet
Total Assets	7.07B	6.67B	7.17B	8.19B	6.73B	6.13B
Cash, Cash Equivalents and Short-Term Investments	615.50M	735.60M	822.20M	841.30M	856.50M	787.50M
Total Debt	3.19B	2.86B	2.77B	3.23B	2.42B	2.53B
Total Liabilities	6.77B	6.09B	6.21B	7.12B	5.78B	5.01B
Stockholders Equity	26.00M	312.80M	845.50M	943.60M	827.70M	1.01B
Cash Flow
Free Cash Flow	-800.70M	-497.40M	589.70M	113.90M	148.20M	-555.10M
Operating Cash Flow	-196.10M	-66.80M	1.01B	425.30M	371.40M	-282.90M
Investing Cash Flow	-615.00M	-241.50M	-408.00M	-931.60M	-178.40M	-191.30M
Financing Cash Flow	768.70M	221.70M	-624.70M	491.10M	-124.00M	306.40M

Delek US Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DK, the sentiment is Positive. The current price of 32.79 is above the 20-day moving average (MA) of 31.06, above the 50-day MA of 26.13, and above the 200-day MA of 19.42, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 76.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DK.

Delek US Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	66 Neutral	$7.73B	24.82	6.81%	7.06%	-8.65%	-73.25%
DINO	65 Neutral	$9.96B	-113.49	-0.91%	3.76%	-14.58%	-107.50%
CVI	56 Neutral	$3.65B	-10.96	-71.24%	7.60%	-15.98%	-160.88%
PARR	52 Neutral	$1.89B	-137.31	-1.67%	―	-13.09%	-103.24%
DK	51 Neutral	$1.97B	―	-200.75%	3.11%	-29.94%	-723.41%
PBF	51 Neutral	$3.77B	-3.79	-9.63%	3.37%	-18.73%	-236.79%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Delek US Holdings Corporate Events

Delek US Holdings Reports Q2 2025 Net Loss

On August 6, 2025, Delek US Holdings reported a net loss of $106.4 million for the second quarter of 2025, with an adjusted net loss of $33.1 million. Despite the losses, the company made significant progress in its Enterprise Optimization Plan, achieving $30 million in improvements and increasing its cash flow improvement target. Delek Logistics completed the Libby 2 gas processing plant, enhancing its position in the Permian basin. The company also executed a $700 million debt offering and repurchased $20.5 million in common stock, reflecting its focus on economic independence and shareholder value.

Delek US Holdings Announces Quarterly Dividend Approval

On July 30, 2025, Delek US Holdings, Inc. announced that its Board of Directors approved a quarterly dividend of $0.255 per share, to be paid on August 18, 2025, to shareholders on record as of August 11, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder confidence.