Icahn Enterprises (IEP) AI Stock Analysis

• Market Cap: $4.63B
• Dividend Yield: 23.61%
• Average Volume (3M): 695.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -11.56%
• EPS Growth: -44.04%
• Country: US
• Employees: 15,037
• Sector: Energy
• Sector Strength: 53
• Industry: Conglomerates
• EPS (TTM): -0.79
• Shares Outstanding: 546,086,100
• 10 Day Avg. Volume: 778,985
• 30 Day Avg. Volume: 695,882
• PEG Ratio: 6.68
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.32
• Enterprise Value/Market Cap: 4.49
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 30.72
• Enterprise Value/Ebitda: 48.18
• 1Y Price Target: $12.00
• Price Target Upside: 37.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: $8.50 ▼(-2.86%Downside)

Icahn Enterprises faces significant financial challenges, with declining revenues and profitability, high leverage, and operational inefficiencies. While there are some positive indicators, such as a strong cash position and strategic investment opportunities, these are overshadowed by negative earnings, bearish technical signals, and unsustainable dividend yields. The stock is currently undervalued but carries substantial risk.

Icahn Enterprises Business Overview & Revenue Model

Company Description

Icahn Enterprises L.P. (IEP) is a diversified holding company engaged in a variety of business sectors, including investment, automotive, energy, food packaging, metals, real estate, and home fashion. Headquartered in the United States, the company operates through a range of subsidiaries, each contributing to its diverse portfolio. Established by renowned investor Carl Icahn, IEP seeks to capitalize on opportunities across industries, leveraging its strategic insights and financial acumen to enhance shareholder value.

How the Company Makes Money

Icahn Enterprises makes money primarily through its investment activities and the operations of its various subsidiaries. The company's revenue model is built on acquiring and managing a diverse array of businesses. In the investment segment, IEP generates revenue by investing in undervalued companies, utilizing activist strategies to unlock value and achieve a return on investment through capital appreciation and dividend income. In the automotive sector, through its subsidiary, Icahn Automotive Group, the company earns revenue from the sale and distribution of automotive parts and services. The energy segment, managed under CVR Energy, contributes to revenue through the production and sale of petroleum products. Additionally, other subsidiaries involved in food packaging, metals, and real estate generate income through the sale of goods, rental income, and appreciation of property values. Strategic partnerships and the operational efficiencies of these subsidiaries play a significant role in enhancing the company's earnings.

Icahn Enterprises Financial Statement Overview

Summary

Icahn Enterprises faces financial strain with declining revenues and profitability. High leverage and declining equity position suggest financial risks, though positive operating cash flow provides some stability.

Income Statement

Icahn Enterprises has been facing declining revenues with a significant drop from 2023 to TTM (Trailing-Twelve-Months). Gross profit margins have decreased, indicating potential cost pressures or inefficiencies. Both EBIT and EBITDA margins are negative in the TTM period, showcasing operational challenges and declining profitability. The net profit margin is also negative, reflecting the company's struggle to achieve profitability.

Balance Sheet

The balance sheet highlights a high level of debt relative to equity, with a debt-to-equity ratio consistently above 2.8 in recent periods. Stockholders’ equity has been decreasing, signaling potential financial risks. Despite these challenges, the equity ratio remains around 16.6% in TTM, indicating a moderate but decreasing cushion of equity against total assets.

Cash Flow

Operating cash flow is positive and has shown some growth in TTM, which is a positive sign. However, the free cash flow growth rate has been inconsistent, with a decrease in TTM compared to the previous year. The ratio of operating cash flow to net income is favorable due to large non-cash expenses impacting net income, suggesting good cash conversion despite reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.54B	9.90B	11.85B	14.13B	10.94B	7.42B
Gross Profit	676.00M	935.00M	1.88B	2.44B	1.46B	1.10B
EBITDA	-187.00M	467.00M	150.00M	755.00M	605.00M	-1.45B
Net Income	-791.00M	-445.00M	-684.00M	-25.00M	-500.00M	-2.47B
Balance Sheet
Total Assets	15.48B	16.28B	20.86B	27.91B	27.75B	24.99B
Cash, Cash Equivalents and Short-Term Investments	2.18B	2.60B	2.95B	9.15B	11.47B	10.61B
Total Debt	7.30B	7.34B	7.21B	7.10B	7.69B	8.06B
Total Liabilities	11.74B	11.66B	14.79B	18.36B	18.40B	15.73B
Stockholders Equity	2.56B	3.24B	3.97B	9.56B	9.34B	9.26B
Cash Flow
Free Cash Flow	601.00M	552.00M	3.43B	717.00M	16.00M	-615.00M
Operating Cash Flow	901.00M	832.00M	3.74B	1.05B	321.00M	-416.00M
Investing Cash Flow	-257.00M	-215.00M	-290.00M	-260.00M	528.00M	-581.00M
Financing Cash Flow	-802.00M	-1.32B	-2.38B	-344.00M	293.00M	-653.00M

Icahn Enterprises Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IEP, the sentiment is Positive. The current price of 8.75 is above the 20-day moving average (MA) of 8.35, above the 50-day MA of 8.44, and below the 200-day MA of 9.35, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 89.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IEP.

Icahn Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	80 Outperform	$6.78B	19.67	22.84%	0.80%	-0.57%	116.12%
MDU	71 Outperform	$3.38B	12.91	9.63%	3.15%	-25.50%	-45.13%
GFF	70 Outperform	$3.58B	15.74	110.90%	0.95%	-3.38%	26.22%
SPLP	65 Neutral	$785.18M	3.67	24.14%	―	5.83%	72.33%
Sector *	52 Neutral	C$2.90B	-1.06	-3.16%	6.06%	3.01%	-47.13%
CODI	50 Neutral	$489.03M	―	-4.98%	15.38%	6.77%	9.95%
IEP	48 Neutral	$4.63B	―	-26.60%	23.61%	-11.56%	-44.04%

Icahn Enterprises Corporate Events

Icahn Enterprises Highlights Financial Status in New Presentation

Icahn Enterprises L.P. has released updated presentation materials intended for investor and media meetings, highlighting its diverse business operations and financial status as of December 31, 2024. The company reported a liquidity of approximately $2.7 billion through its investments, with a focus on creating value through organic growth and strategic acquisitions. The presentation also outlines various risks and uncertainties that could impact future performance, including economic volatility and industry-specific challenges.