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Delek US Holdings (DK)
NYSE:DK
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Delek US Holdings (DK) AI Stock Analysis

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DK

Delek US Holdings

(NYSE:DK)

Rating:51Neutral
Price Target:
$24.50
▼(-21.78% 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
EPA exemptions
The EPA's decision on exemptions has not been fully priced into DK's stock, indicating potential for further gains.
Refinery performance
DK posted record throughput at Big Spring, Krotz Spring, and for the entire system.
Negative Factors
Operating expenses
DK's opex for 2Q25 was guided higher than expected, with unexplained costs remaining.
Stock recommendation
Analyst maintains a Sell recommendation for DK.

Delek US Holdings (DK) vs. SPDR S&P 500 ETF (SPY)

Delek US Holdings Business Overview & Revenue Model

Company DescriptionDelek 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 MoneyDelek 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in Delek's Enterprise Optimization Plan, operational achievements, and financial liquidity improvements. However, the company faced financial challenges, including a net loss and high operating expenses. Overall, the highlights and lowlights are balanced, reflecting both positive strategic advancements and financial hurdles.
Q2-2025 Updates
Positive Updates
Enterprise Optimization Plan (EOP) Progress
Delek increased its EOP guidance to $130 million to $170 million on a run rate basis. Approximately $30 million of EOP cash flow improvement was realized in the quarter, achieving the prior target of $120 million one quarter ahead of schedule.
Operational Achievements
Delek reported record throughput in the quarter, with strong performance at the Big Spring refinery and other locations. The company's refining margins increased by $0.96 per barrel compared to the second quarter of 2024.
Financial Liquidity and Growth
Delek Logistics increased financial liquidity through a successful high-yield offering, with over $1 billion of liquidity at DKL. This financial flexibility supports growth and economic separation from DK.
Positive Supply and Marketing Contribution
Supply and marketing contributed a gain of $26 million, with $19 million from wholesale marketing and $7 million from supply, positively impacted by seasonal trends and EOP improvements.
Negative Updates
Net Loss in the Quarter
Delek reported a net loss of $106 million or negative $1.76 per share for the second quarter. Adjusted net loss was $33 million or negative $0.56 per share.
Operating Expenses and Cash Flow Challenges
Operating expenses for the third quarter are expected to be between $210 million and $225 million. Cash flow provided by operations was $51 million, including a net loss and timing-related working capital movements.
Company Guidance
During Delek U.S.'s second quarter earnings call, the company provided updated guidance and discussed various metrics and strategic initiatives. The Enterprise Optimization Plan (EOP) guidance was increased to $130 million to $170 million on a run rate basis, with $30 million of EOP cash flow improvements already realized in the quarter. Delek Logistics aims to meet its 2025 EBITDA guidance of $480 million to $520 million and has achieved a strong financial liquidity position with over $1 billion. Operational performance was notable, with Big Spring, Tyler, El Dorado, and Krotz Springs refineries showing strong throughput and operational metrics. Delek reported a net loss of $106 million for the quarter, but adjusted EBITDA was $170.2 million. The company also highlighted a commitment to capital allocation, having paid $16 million in dividends and repurchased $13 million of shares. Overall, Delek expressed optimism for the second half of 2025, underpinned by strategic execution and operational improvements.

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
45
Neutral
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
55
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.82B11.85B16.92B20.25B10.65B7.30B
Gross Profit-190.90M0.001.04B924.60M171.80M-243.00M
EBITDA-213.30M-18.50M664.00M899.30M324.60M-336.10M
Net Income-769.70M-560.40M19.80M257.10M-170.50M-570.40M
Balance Sheet
Total Assets7.07B6.67B7.17B8.19B6.73B6.13B
Cash, Cash Equivalents and Short-Term Investments615.50M735.60M822.20M841.30M856.50M787.50M
Total Debt3.19B2.86B2.77B3.23B2.42B2.53B
Total Liabilities6.77B6.09B6.21B7.12B5.78B5.01B
Stockholders Equity26.00M312.80M845.50M943.60M827.70M1.01B
Cash Flow
Free Cash Flow-800.70M-497.40M589.70M113.90M148.20M-555.10M
Operating Cash Flow-196.10M-66.80M1.01B425.30M371.40M-282.90M
Investing Cash Flow-615.00M-241.50M-408.00M-931.60M-178.40M-191.30M
Financing Cash Flow768.70M221.70M-624.70M491.10M-124.00M306.40M

Delek US Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price31.32
Price Trends
50DMA
23.88
Positive
100DMA
20.40
Positive
200DMA
18.43
Positive
Market Momentum
MACD
2.38
Negative
RSI
74.65
Negative
STOCH
92.01
Negative
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 31.32 is above the 20-day moving average (MA) of 25.17, above the 50-day MA of 23.88, and above the 200-day MA of 18.43, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 74.65 is Negative, neither overbought nor oversold. The STOCH value of 92.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DK.

Delek US Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$7.83B25.356.62%7.02%-8.65%-73.25%
65
Neutral
$15.28B7.483.19%5.33%4.10%-60.58%
55
Neutral
$3.11B268.82-50.65%8.91%-15.98%-160.88%
54
Neutral
$800.48M18.83666.62%10.21%-10.51%101.44%
52
Neutral
$1.74B3.02-1.59%-13.09%-103.24%
51
Neutral
$1.92B-200.75%3.20%-29.94%-723.41%
51
Neutral
$3.27B-17.30%3.86%-18.73%-236.79%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DK
Delek US Holdings
31.32
13.64
77.15%
CVI
CVR Energy
31.43
9.05
40.44%
PBF
PBF Energy
28.51
-2.03
-6.65%
SUN
Sunoco
50.85
1.89
3.86%
CAPL
Crossamerica Partners
20.56
1.98
10.66%
PARR
Par Pacific Holdings
33.88
15.19
81.27%

Delek US Holdings Corporate Events

Private Placements and FinancingStock BuybackBusiness Operations and StrategyFinancial Disclosures
Delek US Holdings Reports Q2 2025 Net Loss
Negative
Aug 6, 2025

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.

Dividends
Delek US Holdings Announces Quarterly Dividend Approval
Positive
Jul 31, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025