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Cvr Partners Lp Common Units R (UAN)
NYSE:UAN
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CVR Partners
(NYSE:UAN)68Neutral
CVR Partners (UAN) vs. S&P 500 (SPY)
Market Cap
$822.21M
Dividend Yield8.96%
Average Volume (3M)25.80K
Price to Earnings (P/E)13.5
Beta (1Y)0.70
Revenue Growth-22.91%
EPS Growth-64.68%
CountryUS
Employees310
SectorBasic Materials
Sector Strength56
IndustryAgriculture
Share Statistics
EPS (TTM)5.76
Shares Outstanding10,569,637
10 Day Avg. Volume31,410
30 Day Avg. Volume25,803
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.50
Price to Cash Flow (P/CF)15.40
P/FCF Ratio9.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CVR Partners Business Overview & Revenue Model
Company DescriptionCVR Partners, LP is a manufacturer and supplier of nitrogen fertilizer products, primarily serving the agricultural sector. The company operates through its manufacturing facilities located in the United States, where it produces ammonia and urea ammonium nitrate (UAN) solutions. CVR Partners is focused on providing high-quality fertilizer solutions that enhance crop production and efficiency.
How the Company Makes MoneyCVR Partners makes money primarily through the production and sale of nitrogen fertilizer products, including ammonia and urea ammonium nitrate (UAN) solutions. The company's revenue is generated by supplying these essential agricultural inputs to farmers, agricultural retailers, and distributors. The pricing of their products is influenced by factors such as natural gas prices, which are a key input cost, as well as market demand for agricultural products. Significant partnerships with agricultural distributors and retailers also play a role in the distribution and sales of their products, contributing to their earnings. Additionally, the company's revenue is impacted by seasonal planting cycles and the broader agricultural economy.
CVR Partners Financial Statement Overview
Summary
CVR Partners presents a mixed financial picture. The company faces revenue and profitability challenges, but operational efficiency is maintained. The balance sheet is strong, with no debt and significant cash reserves, providing stability. Cash flow remains positive, although it has decreased, pointing to effective cash management. Overall, while there are areas of concern, particularly in revenue and profit margins, the company remains financially stable.Income Statement
CVR Partners' income statement shows a decline in total revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is negative, indicating cost pressures. The net profit margin has decreased significantly compared to the previous year, highlighting reduced profitability. The company has shown negative revenue growth compared to 2023, but maintains a positive EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.62
Positive
Balance Sheet
The balance sheet reflects a strong position with zero debt and a healthy cash balance, enhancing financial stability. The equity ratio is robust, indicating a solid capital structure. However, the decrease in stockholders' equity compared to previous years suggests potential challenges in equity retention or asset growth.70
Positive
Cash Flow
The cash flow statement is strong, with positive free cash flow in the TTM (Trailing-Twelve-Months), although it has decreased compared to the prior year. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. The company effectively manages its capital expenditures to ensure positive free cash flow.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 525.32M | 681.48M | 835.58M | 532.58M | 349.95M | Gross Profit |
| 118.86M | 232.46M | 352.37M | 162.04M | 24.84M | EBIT |
| 90.35M | 201.41M | 239.15M | 66.66M | -69.25M | EBITDA |
| 178.90M | 281.10M | 403.16M | 212.67M | 41.35M | Net Income Common Stockholders |
| 60.90M | 172.43M | 286.80M | 78.16M | -98.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 90.86M | 45.28M | 86.34M | 112.52M | 30.56M | Total Assets |
| 1.02B | 975.33M | 1.10B | 1.13B | 1.03B | Total Debt |
| 572.89M | 550.48M | 549.73M | 610.64M | 639.49M | Net Debt |
| 482.04M | 505.20M | 463.39M | 498.13M | 608.93M | Total Liabilities |
| 725.65M | 672.45M | 688.59M | 784.86M | 718.64M | Stockholders Equity |
| 404.42M | 302.88M | 286.80M | 342.20M | 314.24M |
| Cash Flow | Free Cash Flow | |||
| 113.47M | 219.33M | 256.80M | 168.13M | 1.14M | Operating Cash Flow |
| 150.54M | 243.53M | 301.46M | 188.72M | 19.74M | Investing Cash Flow |
| -31.89M | -2.72M | -44.62M | -20.34M | -18.55M | Financing Cash Flow |
| -73.07M | -281.86M | -283.02M | -86.43M | -7.63M |
CVR Partners Technical Analysis
Negative
72.23
Price Trends
76.87
Negative
73.50
Negative
72.05
Positive
Market Momentum
-0.82
Positive
33.20
Neutral
11.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UAN, the sentiment is Negative. The current price of 72.23 is below the 20-day moving average (MA) of 76.91, below the 50-day MA of 76.87, and above the 200-day MA of 72.05, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 33.20 is Neutral, neither overbought nor oversold. The STOCH value of 11.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UAN.
CVR Partners Risk Analysis
CVR Partners disclosed 50 risk factors in its most recent earnings report. CVR Partners reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CVR Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $13.74B | 12.02 | 24.43% | 2.56% | -10.48% | -13.78% | |
70 Outperform | $37.41B | 40.58 | 2.94% | 4.38% | -13.24% | -65.53% | |
68 Neutral | $822.21M | 13.50 | 15.06% | 8.96% | -22.91% | -64.68% | |
63 Neutral | $7.33B | 42.32 | 1.52% | 3.60% | -18.79% | -84.24% | |
54 Neutral | $319.17M | ― | -44.87% | ― | -8.74% | -492.08% | |
54 Neutral | $482.11M | ― | -2.68% | ― | -12.01% | -174.13% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
UAN
CVR Partners
72.23
15.09
26.41%
CF
Cf Industries Holdings
75.28
-2.28
-2.94%
IPI
Intrepid Potash
24.13
2.99
14.14%
LXU
Lsb Industries
6.71
-0.43
-6.02%
MOS
Mosaic Co
23.08
-7.25
-23.90%
TSE:NTR
Nutrien
70.21
3.96
5.98%
CVR Partners Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -6.38% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The call highlighted a strong financial performance and strategic initiatives to enhance operational flexibility and efficiency. Despite challenges such as a decline in UAN sales volume and geopolitical risks, the overall market conditions are favorable with strong demand for nitrogen fertilizers and improving safety metrics.Highlights
Strong Financial Performance
For the fourth quarter of 2024, the company reported net sales of $140 million, net income of $18 million, and EBITDA of $50 million. For the full year 2024, EBITDA was $179 million and distributions were $6.76 per common unit.
Record Ammonia Production
East Dubuque set new records in 2024 with an ammonia utilization rate of 102% and production volumes of approximately 399,000 tons.
Improved Safety Metrics
The company reported a 40% reduction in total recordable incident rate in 2024 compared to 2023.
Strong Demand and Favorable Market Conditions
Despite challenging weather conditions, there was strong demand for nitrogen fertilizer, with prices increasing compared to the third quarter. The market conditions look favorable for the spring planting season with higher grain prices.
Strategic Projects and Flexibility
Plans to implement a dual fuel project at the Coffeyville facility, allowing the flexibility to switch between natural gas and pet coke based on economic conditions, are underway.
Lowlights
Decline in UAN Sales Volume
UAN sales volumes were down approximately 3% compared to the fourth quarter of 2023, partially due to challenging weather conditions.
Decline in Crop Yield Estimates
USDA estimated record high corn yields of 179 bushels per acre, down from previous estimates of 183 bushels. Soybean yields were estimated to be 51 bushels per acre, down from 53 bushels previously.
Geopolitical and Market Risks
The company faces geopolitical risks in the nitrogen fertilizer industry, with potential imposition of tariffs on foreign fertilizer and energy imports, and concerns about natural gas supply in Europe.
High Natural Gas Prices in Europe
Natural gas prices in Europe remained high at around $15 per MMBtu, contributing to elevated ammonia production costs and potential supply-demand tightness.
Company Guidance
During the fourth quarter of 2024, the company reported net sales of $140 million, net income of $18 million, and EBITDA of $50 million. The Board declared a distribution of $1.75 per common unit, to be paid on March 10, 2025. For the full year, EBITDA was $179 million, with distributions totaling $6.76 per common unit. The ammonia utilization rate was 96%, with production volumes reaching 210,000 gross tons and 80,000 net tons available for sale. UAN production totaled 310,000 tons, sold at an average price of $229 per ton, while ammonia sales were approximately 97,000 tons at $475 per ton. The company expects 2025 maintenance capital spending between $35 and $45 million, with growth capital spending from $20 to $25 million. Total liquidity at the end of the quarter was $130 million, consisting of $91 million in cash and $39 million available under the ABL facility. Looking ahead, the company anticipates an ammonia utilization rate between 95% and 100% for Q1 2025, with direct operating expenses estimated at $55 to $65 million.CVR Partners Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
CVR Partners Announces Q4 2024 Financial Results
Positive
Feb 18, 2025
CVR Partners reported its fourth quarter and full-year 2024 financial results, declaring a cash distribution of $1.75 per common unit for Q4 2024. The company achieved a combined ammonia utilization rate of 96% for the year and showed a net income of $18 million for Q4 2024, compared to $10 million in Q4 2023. Despite challenging weather conditions, nitrogen fertilizer demand remained strong, with higher prices in Q4 2024 compared to the previous quarter. The company plans to focus on high utilization of its plants and cash flow generation, amidst tight supply and demand conditions expected to continue into 2025.
Executive/Board Changes
CVR Energy Announces New Executive Employment Agreement
Neutral
Dec 12, 2024
CVR Energy has announced a new employment agreement for Mr. Lamp, effective January 1, 2025, which will replace his existing agreement set to expire on December 31, 2024. The new agreement features a salary increase and entitles Mr. Lamp to various bonuses and benefits, including a base salary of $1,200,000 and participation in long-term incentive plans. The terms also include severance payments under specific conditions, ensuring financial security post-termination. The agreement’s implications for CVR Energy involve retaining executive leadership under updated financial terms, which may impact its financial planning and stakeholder interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.