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FF

FutureFuel NYSE:FF Stock Report

Last Price

US$7.42

Market Cap

US$324.7m

7D

-3.5%

1Y

-9.3%

Updated

19 Aug, 2022

Data

Company Financials
FF fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends4/6

FF Stock Overview

FutureFuel Corp., through its subsidiary, FutureFuel Chemical Company, manufactures and sells diversified chemical, bio-based fuel, and bio-based specialty chemical products in the United States.

FutureFuel Corp. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for FutureFuel
Historical stock prices
Current Share PriceUS$7.42
52 Week HighUS$10.63
52 Week LowUS$6.15
Beta0.50
1 Month Change7.07%
3 Month Change3.92%
1 Year Change-9.29%
3 Year Change-28.31%
5 Year Change-44.96%
Change since IPO23.67%

Recent News & Updates

Jul 29

FutureFuel: Margins Remain Under Pressure

On recent weakness, gross margin has now slipped below 9% when averaged out over the past four quarters. Shares look like they will now test long-term support just above the $6 mark. Company continues to reward shareholders through a quarterly dividend of $0.06 per share. Intro We wrote about FutureFuel Corp. (FF) in September of last year when we stated that stock was very close to bottoming out. One of the reasons behind our bullish pretense was the fact that management had the conviction to pay out a special dividend of $2.50 per share in June of last year when the company had lost close to half of its market cap since the turn of the year. Suffice it to say, this dividend at the time made up over a third of the prevailing share price, so investors who were able to buy shares before the stock went ex-dividend essentially got close to a 35% discount on their investment. Furthermore, despite the volatility in recent times, FF has continued to distribute the quarterly dividend of $0.06 per share, which means the regular dividend currently yields approximately 3.32%. Long-term investors will know all too well that having sound management who really looks out for shareholders is an excellent place to start with a long-term investment. Furthermore, companies with strong balance sheets, keen valuations, and sustained profitability are what we look for in our value plays. In saying this, as we can see from FutureFuel's technical chart below, investors need to be prepared for a drop to roughly the $6 level (Long-term support) before we see a sustained bottom in this stock. Bearish divergences are presenting themselves in the long-term RSI momentum indicator and shares from a profitability standpoint in fact are not all that cheap (GAAP earnings multiple of 13.98). FutureFuel Technical Chart (Stockcharts.com) Margin Headwinds In fact, FutureFuel's profitability is the real issue here, and until the market sees a clear line of sight to sustained earnings growth, shares may hover around the depicted support area for some time to come. We state this because of how FutureFuel's income statement has changed in recent times. Suffice it to say, it is all about gross margin as this key metric (which usually designates whether the company in question has a sound moat) comes in for extra scrutiny among analysts in inflationary times. This stands to reason gross margin incorporates everything on the front end to prepare the product for sale from raw materials (Feedstock price increases) to delivery expenses to packaging-related costs, etc. FutureFuel's gross margin over the past four quarters comes in at 8.42% which is well behind its 5-year average of almost 20%. Costs are practically all on the front-end in FutureFuel as its trailing net profit margin presently comes in at roughly 7%. To give you an idea of how FutureFuel's much lower gross margin is affecting its income statement, ponder the following. For every $1 in revenues, FutureFuel generates, the company makes $0.085 when we take the costs of goods sold out of the equation. Now with inflation continuing at double digital percentages at present, let's take a conservative estimate and say that FutureFuel's cost of goods sold will increase by only 4% over the next 12 months. This means its present costs of $0.915 will increase to over $0.95 ($0.035 increase). Although a 4% spike in the cost of goods sold may not look like much on the surface, those $0.035 of extra costs (All things remaining equal) would potentially cut the company's net profit from its present $0.07 to $0.035 further down the income statement. This would be a 50% drop in bottom-line (What the market is really focused on) earnings which is substantial, to say the least.

Shareholder Returns

FFUS ChemicalsUS Market
7D-3.5%1.5%1.4%
1Y-9.3%-0.9%-8.4%

Return vs Industry: FF underperformed the US Chemicals industry which returned -0.9% over the past year.

Return vs Market: FF matched the US Market which returned -8.4% over the past year.

Price Volatility

Is FF's price volatile compared to industry and market?
FF volatility
FF Average Weekly Movement4.9%
Chemicals Industry Average Movement6.6%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: FF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FF's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a470Tom McKinlayhttps://www.futurefuelcorporation.com

FutureFuel Corp., through its subsidiary, FutureFuel Chemical Company, manufactures and sells diversified chemical, bio-based fuel, and bio-based specialty chemical products in the United States. The company operates through two segments, Chemicals and Biofuels. The Chemicals segment provides various custom chemicals that are used in the agricultural chemical, coatings, chemical intermediates, industrial and consumer cleaning, oil and gas, and specialty polymers industries; and performance chemicals, such as polymer modifiers, glycerin products, and various specialty chemicals and solvents.

FutureFuel Corp. Fundamentals Summary

How do FutureFuel's earnings and revenue compare to its market cap?
FF fundamental statistics
Market CapUS$324.72m
Earnings (TTM)US$16.05m
Revenue (TTM)US$365.81m

20.2x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FF income statement (TTM)
RevenueUS$365.81m
Cost of RevenueUS$337.67m
Gross ProfitUS$28.14m
Other ExpensesUS$12.09m
EarningsUS$16.05m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.37
Gross Margin7.69%
Net Profit Margin4.39%
Debt/Equity Ratio0%

How did FF perform over the long term?

See historical performance and comparison

Dividends

36.9%

Current Dividend Yield

65%

Payout Ratio

Does FF pay a reliable dividends?

See FF dividend history and benchmarks
When do you need to buy FF by to receive an upcoming dividend?
FutureFuel dividend dates
Ex Dividend DateAug 31 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend11 days
Days until Dividend pay date26 days

Does FF pay a reliable dividends?

See FF dividend history and benchmarks