NasdaqGS:REGI

Stock Analysis Report

Executive Summary

Renewable Energy Group, Inc. produces cleaner and lower carbon transportation fuels.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Renewable Energy Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REGI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

REGI

-0.3%

US Oil and Gas

0.5%

US Market


1 Year Return

15.2%

REGI

-17.7%

US Oil and Gas

20.3%

US Market

Return vs Industry: REGI exceeded the US Oil and Gas industry which returned -17.7% over the past year.

Return vs Market: REGI underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

REGIIndustryMarket
7 Day7.9%-0.3%0.5%
30 Day20.0%-7.5%2.0%
90 Day82.4%-6.4%9.4%
1 Year15.2%15.2%-14.4%-17.7%22.8%20.3%
3 Year252.0%252.0%-11.8%-20.1%50.1%40.4%
5 Year244.4%244.4%-21.0%-32.6%73.1%54.1%

Price Volatility Vs. Market

How volatile is Renewable Energy Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Renewable Energy Group undervalued compared to its fair value and its price relative to the market?

1.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate REGI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate REGI's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REGI is overvalued based on its PB Ratio (1.9x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Renewable Energy Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: REGI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: REGI's is expected to become profitable in the next 3 years.

Revenue vs Market: REGI's revenue (5.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: REGI's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Renewable Energy Group performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REGI is currently unprofitable.

Growing Profit Margin: REGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REGI is unprofitable, but has reduced losses over the past 5 years at a rate of 22.1% per year.

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

Earnings vs Industry: REGI is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: REGI has a negative Return on Equity (-12.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Renewable Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: REGI's short term assets ($352.2M) exceed its short term liabilities ($246.5M).

Long Term Liabilities: REGI's short term assets ($352.2M) exceed its long term liabilities ($147.4M).


Debt to Equity History and Analysis

Debt Level: REGI's debt to equity ratio (32.8%) is considered satisfactory.

Reducing Debt: REGI's debt to equity ratio has reduced from 36.4% to 32.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: REGI's debt is covered by short term assets (assets are 1.7x 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: REGI has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: REGI has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Renewable Energy Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if REGI'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 REGI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

CJ Warner (61yo)

1.1yrs

Tenure

0

Ms. Cynthia J. Warner, also known as CJ, has been an Executive Vice President of Operations at Andeavor (Formerly, Tesoro Corporation) since August 24, 2016. Ms. Warner oversees Andeavor's Refining; Logist ...


Leadership Team

NamePositionTenureCompensationOwnership
Chad Stone
Chief Financial Officer10.5yrsUS$1.21m0.22% $2.6m
Eric Bowen
Vice President of Corporate Business Development & Legal Affairs7.1yrsUS$1.01m0.15% $1.8m
Gary Haer
Vice President of Sales & Marketing13.5yrsUS$736.60k0.0016% $18.9k
Cynthia Warner
President1.1yrsno data0.010% $122.5k
Todd Samuels
Chief Accounting Officer1.8yrsno data0.016% $186.1k
Natalie A. Merrill
Chief of Staff4.2yrsno datano data
Raymond Richie
VP of Strategic Planning & Analysis and MD of European Operations2.1yrsno datano data
Chad Baker
Controller9.3yrsno datano data
Todd Robinson
Treasurer3.8yrsno datano data
Anthony Hulen
Executive Director of Corporate Affairs0yrsno datano data

4.2yrs

Average Tenure

48yo

Average Age

Experienced Management: REGI's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cynthia Warner
President1.1yrsno data0.010% $122.5k
Jeffrey Stroburg
Chairman of the Board0yrsUS$270.00k0.58% $7.0m
James Borel
Independent Director1.9yrsUS$164.00k0.018% $212.4k
Christopher Sorrells
Lead Director0yrsUS$194.00k0.098% $1.2m
Michael Scharf
Independent Director8.1yrsUS$187.00k0.11% $1.3m
Peter J. Harding
Independent Director5.2yrsUS$174.00k0.27% $3.2m
Delbert Christensen
Independent Director13.5yrsUS$188.00k0.20% $2.4m
Randolph Howard
Vice Chairman0yrsUS$648.19k0.25% $3.0m
Debora Frodl
Independent Director1.9yrsUS$160.00k0.018% $212.4k

3.5yrs

Average Tenure

66yo

Average Age

Experienced Board: REGI's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Renewable Energy Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Renewable Energy Group, Inc.
  • Ticker: REGI
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: US$1.193b
  • Shares outstanding: 38.96m
  • Website: https://www.regi.com

Number of Employees


Location

  • Renewable Energy Group, Inc.
  • 416 South Bell Avenue
  • P.O. Box 888
  • Ames
  • Iowa
  • 50010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REGINasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 2012
RBE1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2012

Biography

Renewable Energy Group, Inc. produces cleaner and lower carbon transportation fuels. The company utilizes an integrated production, distribution, and logistics system to convert natural fats, oils, and greases into advanced biofuels. It operates through Biomass-Based Diesel, Services, and Corporate and Other segments. The company acquires feedstock; and manages construction and operates biomass-based diesel production facilities. The company also produces biomass-based diesel from a range of feedstocks, including inedible oil, used cooking oil, and inedible animal fat, as well as soybean oil; and markets, distributes, and sells biomass-based diesel and its co-products. In addition, it purchases and resells biomass-based diesel, petroleum-based diesel, renewable identification numbers, California Low Carbon Fuel Standard credits, and raw material feedstocks acquired from third parties; and sells glycerin and other co-products of the biomass-based diesel production process. Further, the company provides facility management and operational services to biomass-based diesel production facilities; and construction management services for biomass-based diesel production facilities. Additionally, it trades in petroleum-based heating oil and diesel fuel. As of July 17, 2019, the company operated a network of 14 biorefineries in the United States and Europe. Renewable Energy Group, Inc. was founded in 1996 and is headquartered in Ames, Iowa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:39
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.