NasdaqCM:PEIX

Stock Analysis Report

Executive Summary

Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels and alcohol products in the United States.

Snowflake

Fundamentals

Fair value with worrying balance sheet.


Similar Companies

Share Price & News

How has Pacific Ethanol's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

PEIX

1.7%

US Oil and Gas

1.3%

US Market


1 Year Return

-72.4%

PEIX

-21.8%

US Oil and Gas

5.9%

US Market

Return vs Industry: PEIX underperformed the US Oil and Gas industry which returned -21.8% over the past year.

Return vs Market: PEIX underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

PEIXIndustryMarket
7 Day-1.2%1.7%1.3%
30 Day-26.9%-4.0%-1.9%
90 Day-12.6%-8.2%-1.8%
1 Year-72.4%-72.4%-19.0%-21.8%8.3%5.9%
3 Year-92.1%-92.1%-6.0%-14.4%45.6%36.2%
5 Year-95.0%-95.0%-22.5%-33.2%66.1%47.9%

Price Volatility Vs. Market

How volatile is Pacific Ethanol's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pacific Ethanol undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PEIX ($0.58) is trading below our estimate of fair value ($5.78)

Significantly Undervalued: PEIX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PEIX is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: PEIX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate PEIX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PEIX is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Pacific Ethanol forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

56.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEIX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PEIX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PEIX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PEIX's revenue (3.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PEIX's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PEIX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pacific Ethanol performed over the past 5 years?

-59.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PEIX is unprofitable, and losses have increased over the past 5 years at a rate of -59.8% per year.

Accelerating Growth: Unable to compare PEIX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PEIX is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (22.6%).


Return on Equity

High ROE: PEIX has a negative Return on Equity (-22%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PEIX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PEIX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Pacific Ethanol's financial position?


Financial Position Analysis

Short Term Liabilities: PEIX's short term assets ($174.5M) do not cover its short term liabilities ($226.3M)

Long Term Liabilities: PEIX's short term assets (174.5M) exceeds its long term liabilities (158.2M)


Debt to Equity History and Analysis

Debt Level: PEIX's debt to equity ratio (84.8%) is considered high

Reducing Debt: PEIX's debt to equity ratio has increased from 22.4% to 84.8% over the past 5 years.


Balance Sheet

Inventory Level: PEIX has a high level of physical assets or inventory.

Debt Coverage by Assets: PEIX's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PEIX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PEIX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Pacific Ethanol's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PEIX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PEIX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if PEIX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PEIX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PEIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Pacific Ethanol's salary, the management and board of directors tenure and is there insider trading?

9.9yrs

Average management tenure


CEO

Neil Koehler (61yo)

14.6yrs

Tenure

US$930,930

Compensation

Mr. Neil M. Koehler is a co-founder of Pacific Ethanol Central, LLC (formerly Aventine Renewable Energy Holdings, Inc.), and serves as its Chief Executive Officer. Mr. Koehler has been the Chief Executive  ...


CEO Compensation Analysis

Compensation vs. Market: Neil's total compensation ($USD930.93K) is above average for companies of similar size in the US market ($USD495.77K).

Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.9yrs

Average Tenure

63.5yo

Average Age

Experienced Management: PEIX's management team is seasoned and experienced (9.9 years average tenure).


Board Age and Tenure

13.5yrs

Average Tenure

71yo

Average Age

Experienced Board: PEIX's board of directors are seasoned and experienced ( 13.5 years average tenure).


Insider Trading

Insider Buying: PEIX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$57,00022 Aug 19
Neil Koehler
EntityIndividual
Role
Chief Executive Officer
Founder
Shares100,000
Max PriceUS$0.57
BuyUS$12,63407 Jun 19
James Sneed
EntityIndividual
Shares13,299
Max PriceUS$0.95

Ownership Breakdown


Management Team

  • Christopher Wright (66yo)

    VP, General Counsel & Secretary

    • Tenure: 13.3yrs
    • Compensation: US$538.01k
  • Neil Koehler (61yo)

    Founder

    • Tenure: 14.6yrs
    • Compensation: US$930.93k
  • Bill Jones (69yo)

    Founder & Chairman of the Board

    • Tenure: 14.6yrs
    • Compensation: US$263.32k
  • Paul Koehler (60yo)

    Vice President of Commodities & Corporate Development

    • Tenure: 4.3yrs
  • Mike Kandris (71yo)

    COO & Director

    • Tenure: 11.3yrs
    • Compensation: US$510.43k
  • Bryon McGregor (55yo)

    Chief Financial Officer

    • Tenure: 9.9yrs
    • Compensation: US$479.67k

Board Members

  • Neil Koehler (61yo)

    Founder

    • Tenure: 14.6yrs
    • Compensation: US$930.93k
  • Bill Jones (69yo)

    Founder & Chairman of the Board

    • Tenure: 14.6yrs
    • Compensation: US$263.32k
  • Mike Kandris (71yo)

    COO & Director

    • Tenure: 11.3yrs
    • Compensation: US$510.43k
  • Jack Prince (76yo)

    Lead Independent Director

    • Tenure: 7yrs
    • Compensation: US$187.90k
  • Terry Stone (69yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$175.90k
  • Doug Kieta (76yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$175.90k
  • Larry Layne (78yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$175.90k

Company Information

Pacific Ethanol, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pacific Ethanol, Inc.
  • Ticker: PEIX
  • Exchange: NasdaqCM
  • Founded: 2003
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: US$28.717m
  • Shares outstanding: 49.76m
  • Website: https://www.pacificethanol.com

Number of Employees


Location

  • Pacific Ethanol, Inc.
  • 400 Capitol Mall
  • Suite 2060
  • Sacramento
  • California
  • 95814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FPRPDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2004
PEIXNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMay 2004

Biography

Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels and alcohol products in the United States. The company operates in two segments, Production and Marketing. It produces and markets etha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:58
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.