HF Sinclair Corp (DINO) stock analysis

P/E below its 5-year median

HF Sinclair's P/E of 5.2 is below its own 5-year median of 7.7.

P/E below the industry

HF Sinclair's P/E of 5.2 is below the Industrials median of 23.5.

EV/EBITDA below its 5-year median

HF Sinclair's EV/EBITDA of 3.0 is below its 5-year median of 5.5.

P/B below the industry

HF Sinclair's price-to-book of 1.49 is below the Industrials median of 2.40.

Trading below fair value

The share price of $102.18 is below our fair value estimate of $319.70.

Margin of safety over 20%

The price is 68.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -11.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -40.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -28.9% over the last twelve months; the Industrials median is 19.9%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 18.0% over the last twelve months, against 49.3% a year earlier.

Return on equity under 15%

Return on equity was 33.4% over the last twelve months and averaged 14.7% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 32.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

HF Sinclair's return on equity of 33.4% is above the Industrials median of 6.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 10.1% over the last twelve months, against a 5-year average of 3.7%.

Net margin above the industry

HF Sinclair's net margin of 10.1% is above the Industrials median of 2.5%.

Low debt

Debt is 23.7% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 136% of total debt.

Interest well covered

Operating income covers interest expense 26.2 times.

Short-term assets cover short-term debts

Current assets are 2.27 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.49; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

HF Sinclair paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; HF Sinclair yields 2.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 6 fiscal years.

Covered by earnings

Dividends take 10.3% of net income.

Covered by free cash flow

Dividends take 11.2% of free cash flow.