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Icahn Enterprises (IEP)
NASDAQ:IEP
US Market

Icahn Enterprises (IEP) AI Stock Analysis

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Icahn Enterprises

(NASDAQ:IEP)

Rating:48Neutral
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 (IEP) vs. SPDR S&P 500 ETF (SPY)

Icahn Enterprises Business Overview & Revenue Model

Company DescriptionIcahn 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 MoneyIcahn 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 5.80%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Negative
The earnings call presented a mixed outlook with some positive developments in cash position and strategic investment opportunities, but these were overshadowed by significant declines in NAV, energy and automotive segment performance, and investment fund losses.
Q1-2025 Updates
Positive Updates
CVI Stock and Share Purchase Increase
CVI share price increased by 3% with additional share purchases amounting to $33 million, leading to an overall increase of $80 million from the fourth quarter.
Strong Cash Position
The company ended the quarter with $1.3 billion of cash and cash equivalents at the holding company and an additional $900 million of cash at the funds.
Investment Opportunities and Strategy
Despite market volatility, there is considerable value creation potential in the portfolio, particularly in the energy and utility sectors, with a focus on AI-driven demand.
Real Estate Segment Developments
The company expects increased single-family home sales from the newest Country Club by the end of 2025 and is exploring additional property sales.
Negative Updates
NAV Decrease
Net Asset Value (NAV) decreased by $336 million from the fourth quarter of 2024, primarily due to negative performance in the funds and distribution accrual.
Energy Segment EBITDA Decline
Energy segment consolidated EBITDA was negative $61 million for Q1 '25 compared to $203 million in Q1 '24, impacted by the Coffeyville refinery turnaround and unfavorable mark-to-market RINs valuation.
Automotive Segment Underperformance
Automotive segment sales were down 9% year-over-year, with adjusted EBITDA at negative $6 million due to investments in labor, inventory, and facilities. The segment is closing underperforming locations.
Investment Fund Losses
The investment funds ended down approximately 8.4% for the quarter, primarily driven by healthcare investments.
Decreased EBITDA in Other Segments
Food Packaging's adjusted EBITDA decreased by $6 million, Pharma's by $3 million, and Home Fashion's by $1 million compared to the prior year quarter due to various operational challenges.
Company Guidance
In the first quarter of 2025, Icahn Enterprises L.P. reported a notable decrease in NAV by $336 million from Q4 2024, primarily due to negative fund performance and accruals for distributions. However, the company saw a $80 million increase in CVI due to a 3% share price rise and $33 million in additional share purchases. The company's investment funds experienced an 8.4% decline, mainly attributed to healthcare investments. Liquidity remained strong with $1.3 billion in cash at the holding company and $900 million at the funds. The Energy segment reported a negative EBITDA of $61 million, impacted by a Coffeyville refinery turnaround and unfavorable RINs valuations. The Automotive segment showed a 9% sales decline year-over-year, with adjusted EBITDA at negative $6 million. Despite these challenges, the company maintains a significant liquidity position, with $3.8 billion in cash and investments, and plans to capitalize on emerging opportunities. The Board has upheld a quarterly distribution of $0.50 per depositary unit.

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
45
Neutral
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
50
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.54B9.90B11.85B14.13B10.94B7.42B
Gross Profit676.00M935.00M1.88B2.44B1.46B1.10B
EBITDA-187.00M467.00M150.00M755.00M605.00M-1.45B
Net Income-791.00M-445.00M-684.00M-25.00M-500.00M-2.47B
Balance Sheet
Total Assets15.48B16.28B20.86B27.91B27.75B24.99B
Cash, Cash Equivalents and Short-Term Investments2.18B2.60B2.95B9.15B11.47B10.61B
Total Debt7.30B7.34B7.21B7.10B7.69B8.06B
Total Liabilities11.74B11.66B14.79B18.36B18.40B15.73B
Stockholders Equity2.56B3.24B3.97B9.56B9.34B9.26B
Cash Flow
Free Cash Flow601.00M552.00M3.43B717.00M16.00M-615.00M
Operating Cash Flow901.00M832.00M3.74B1.05B321.00M-416.00M
Investing Cash Flow-257.00M-215.00M-290.00M-260.00M528.00M-581.00M
Financing Cash Flow-802.00M-1.32B-2.38B-344.00M293.00M-653.00M

Icahn Enterprises Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.75
Price Trends
50DMA
8.44
Positive
100DMA
8.54
Positive
200DMA
9.35
Negative
Market Momentum
MACD
0.02
Negative
RSI
59.04
Neutral
STOCH
89.99
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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
VMVMI
80
Outperform
$6.78B19.6722.84%0.80%-0.57%116.12%
MDMDU
71
Outperform
$3.38B12.919.63%3.15%-25.50%-45.13%
GFGFF
70
Outperform
$3.58B15.74110.90%0.95%-3.38%26.22%
65
Neutral
$785.18M3.6724.14%5.83%72.33%
52
Neutral
C$2.90B-1.06-3.16%6.06%3.01%-47.13%
50
Neutral
$489.03M-4.98%15.38%6.77%9.95%
IEIEP
48
Neutral
$4.63B-26.60%23.61%-11.56%-44.04%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IEP
Icahn Enterprises
8.75
-4.95
-36.13%
CODI
Compass Diversified Holdings
6.55
-13.67
-67.61%
GFF
Griffon
76.74
15.80
25.93%
MDU
Mdu Resources Group
16.38
3.17
24.00%
SPLP
Steel Partners Holdings
40.50
4.75
13.29%
VMI
Valmont
342.21
84.15
32.61%

Icahn Enterprises Corporate Events

Business Operations and StrategyFinancial Disclosures
Icahn Enterprises Highlights Financial Status in New Presentation
Neutral
Feb 28, 2025

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.

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: Jul 03, 2025