Delek US Holdings (DK) AI Stock Analysis

• Market Cap: $853.13M
• Dividend Yield: 7.52%
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -28.68%
• EPS Growth: -4373.94%
• Country: US
• Employees: 1,987
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -10.38
• Shares Outstanding: 61,866,085
• 10 Day Avg. Volume: 1,311,164
• 30 Day Avg. Volume: 1,452,456
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.17
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -52.43
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.03
• Price Target Upside: 16.24% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10

Delek US Holdings' stock score reflects a challenging financial environment with ongoing profitability and cash flow issues, despite improvements in operational efficiency. The technical analysis shows a bearish trend, aligning with the financial struggles. Valuation concerns persist with a negative P/E ratio, though a high dividend yield offers some appeal. Positive earnings call highlights and strategic corporate events provide a more optimistic outlook, yet significant challenges remain.

Positive Factors

Acquisitions

Higher Logistics earnings reflect Gravity Water Midstream acquisition closing.

Cash Flow Improvement

The company mentioned it 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 Initiatives

DK has made remarkable progress on the strategic initiatives aimed at unlocking its sum-of-the-parts value, having closed all the deals announced at the 2Q call and now focusing on improving its overall cost structure and performance in Refining with its Enterprise Optimization Plan.

Negative Factors

Earnings Expectations

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

Operating Expenses

Higher operating expenses and elevated natural gas prices are impacting the company's financial performance.

Tariffs

The 10% tariff on Canadian crude is broadly seen as a negative impact, particularly affecting Midwest refineries.

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 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: Neutral
• Last Price: 13.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 13.79 is above the 20-day moving average (MA) of 12.80, below the 50-day MA of 14.43, and below the 200-day MA of 17.55, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 63.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DK.

Delek US Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	74 Outperform	$8.84B	9.66	28.38%	6.16%	-1.63%	80.11%
PARR	60 Neutral	$782.65M	3.02	-2.64%	―	-3.13%	-105.02%
Sector *	56 Neutral	$6.99B	3.72	-4.39%	5.96%	-0.24%	-48.44%
CAPL	54 Neutral	$931.32M	46.96	666.62%	8.68%	-6.57%	-50.55%
PBF	51 Neutral	$1.93B	―	-8.87%	6.30%	-13.59%	-127.47%
DK	49 Neutral	$853.13M	―	-108.21%	7.52%	-28.68%	-4373.94%
CVI	46 Neutral	$2.03B	268.82	-27.14%	10.34%	-16.21%	-130.18%

Delek US Holdings Corporate Events

Delek US Holdings Stockholders Approve Key Amendments

On April 29, 2025, Delek US Holdings, Inc. held its Annual Meeting of Stockholders, where the stockholders approved the Sixth Amendment to the 2016 Long-Term Incentive Plan. This amendment increases the number of shares reserved for issuance by 1,900,000, bringing the total to 18,910,000 shares. Additionally, all ten nominees for the board of directors were elected, and the company’s executive compensation program was approved on an advisory basis. The appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 was also ratified.

Spark’s Take on DK Stock

According to Spark, TipRanks’ AI Analyst, DK is a Neutral.

Delek US Holdings’ overall stock score reflects the company’s financial instability and bearish technical outlook, which are significant concerns. However, the positive sentiment from recent earnings calls and corporate events, along with a high dividend yield, provide some supportive factors. Strategic efforts to improve profitability and cash flow are crucial for future performance.

To see Spark’s full report on DK stock, click here.

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.