NasdaqCM:VTNR

Stock Analysis Report

Executive Summary

Vertex Energy, Inc., an environmental services company, provides a range of services designed to aggregate, process, and recycle industrial and commercial waste systems in the Gulf Coast and Central Midwest regions of the United States.

Rewards

Trading at 72.1% below its fair value

Earnings are forecast to grow 75.5% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($64M)



Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

VTNR

0.8%

US Oil and Gas

0.8%

US Market


1 Year Return

29.4%

VTNR

-6.3%

US Oil and Gas

22.0%

US Market

Return vs Industry: VTNR exceeded the US Oil and Gas industry which returned -6.3% over the past year.

Return vs Market: VTNR exceeded the US Market which returned 22% over the past year.


Shareholder returns

VTNRIndustryMarket
7 Day-4.3%0.8%0.8%
30 Day11.6%-0.6%1.7%
90 Day28.3%-5.4%5.2%
1 Year29.4%29.4%-2.8%-6.3%24.7%22.0%
3 Year26.2%26.2%-12.9%-20.9%46.9%37.3%
5 Year-52.8%-52.8%-16.5%-28.7%65.5%47.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VTNR ($1.54) is trading below our estimate of fair value ($5.52)

Significantly Below Fair Value: VTNR is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: VTNR 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 VTNR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VTNR is overvalued based on its PB Ratio (3.2x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

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

75.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: VTNR's revenue (9.1% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: VTNR's revenue (9.1% 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 VTNR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vertex Energy performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTNR is currently unprofitable.

Growing Profit Margin: VTNR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VTNR is unprofitable, but has reduced losses over the past 5 years at a rate of 7.4% per year.

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

Earnings vs Industry: VTNR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.9%).


Return on Equity

High ROE: VTNR has a negative Return on Equity (-13.58%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vertex Energy's financial position?


Financial Position Analysis

Short Term Liabilities: VTNR's short term assets ($25.4M) do not cover its short term liabilities ($26.4M).

Long Term Liabilities: VTNR's short term assets ($25.4M) do not cover its long term liabilities ($43.6M).


Debt to Equity History and Analysis

Debt Level: VTNR's debt to equity ratio (41%) is considered high.

Reducing Debt: VTNR's debt to equity ratio has reduced from 68.3% to 41% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: VTNR's debt is covered by short term assets (assets are 1.2x 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: VTNR has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate VTNR'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 VTNR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VTNR'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 VTNR'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 Vertex Energy's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

Ben Cowart (50yo)

10.7yrs

Tenure

US$501,318

Compensation

Mr. Benjamin P. Cowart, also known as Ben, is the Founder of Vertex Energy Inc., and has been its Chairman of the Board, Chief Executive Officer and President since April 2009. Mr. Cowart serves as Preside ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD501.32K) is about average for companies of similar size in the US market ($USD528.59K).

Compensation vs Earnings: Ben's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

7.5yrs

Average Tenure

50yo

Average Age

Experienced Management: VTNR's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

10.0yrs

Average Tenure

59.5yo

Average Age

Experienced Board: VTNR's board of directors are seasoned and experienced ( 10 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.7%.


Management Team

  • Ben Cowart (50yo)

    Founder

    • Tenure: 10.7yrs
    • Compensation: US$501.32k
  • Chris Carlson (46yo)

    CFO & Secretary

    • Tenure: 9.5yrs
    • Compensation: US$374.56k
  • Matt Lieb (47yo)

    Vice President of Specialty Projects

    • Tenure: 5.5yrs
    • Compensation: US$164.46k
  • John Strickland (65yo)

    Chief Operating Officer

    • Tenure: 4.2yrs
    • Compensation: US$392.37k
  • Dave Peel (69yo)

    Corporate Advisor

    • Tenure: 0yrs
    • Compensation: US$301.89k

Board Members

  • Jim Gregory (69yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$138.30k
  • David Phillips (62yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$59.80k
  • Ben Cowart (50yo)

    Founder

    • Tenure: 10.7yrs
    • Compensation: US$501.32k
  • Dan Borgen (58yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$60.30k
  • Chris Stratton (50yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$60.30k
  • Timothy Harvey (61yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$53.80k

Company Information

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


Key Information

  • Name: Vertex Energy, Inc.
  • Ticker: VTNR
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: US$64.448m
  • Shares outstanding: 41.85m
  • Website: https://www.vertexenergy.com

Number of Employees


Location

  • Vertex Energy, Inc.
  • 1331 Gemini Street
  • Suite 250
  • Houston
  • Texas
  • 77058
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VTNRNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDApr 2009
5VEDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2009

Biography

Vertex Energy, Inc., an environmental services company, provides a range of services designed to aggregate, process, and recycle industrial and commercial waste systems in the Gulf Coast and Central Midwes ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/16 00:18
End of Day Share Price2019/12/13 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.