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UAN

CVR Partners NYSE:UAN Stock Report

Last Price

US$106.29

Market Cap

US$1.1b

7D

-1.3%

1Y

82.3%

Updated

26 Jun, 2022

Data

Company Financials
UAN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends5/6

UAN Stock Overview

CVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States.

CVR Partners Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CVR Partners
Historical stock prices
Current Share PriceUS$106.29
52 Week HighUS$179.74
52 Week LowUS$51.00
Beta1.56
1 Month Change-17.80%
3 Month Change-24.09%
1 Year Change82.35%
3 Year Change159.88%
5 Year Change204.56%
Change since IPO-39.44%

Recent News & Updates

Jun 27

CVR Partners: Don't Give Up, Natural Gas Prices Could Provide Tailwind

CVR Partners has seen its share price move lower in the past month. I contend that the weakness in the share price is unjustified. With natural gas prices circa 35% lower in the past month, this will substantially improve CVR Partner's profit margins. CVR Partners is priced at approximately 3x this year's net income. I estimate that CVR's cash distribution could be $8, or a 7.5% yield in the quarter. I rate UAN stock a buy.

Jun 01

Buy CVR Partners Stock Until The Dust Settles

Fertilizer stocks have fallen sharply from their highs as the media misjudges fertilizer prices. Recent sell-offs have shown that the risks of Chinese and Indian export restrictions have not yet been priced in. CVR Partners looks like one of the cheapest and most promising names in this sector, in my view. In my opinion, mispricing currently prevails in the market, which creates a favorable background for going long UAN.

May 26

CVR Partners: Global Food Shortages, Anyone For Fertilizer?

CVR Partners has seen its share price slide 14% in a month. Why this price action is unjustified. All the evidence shows that demand for nitrogen fertilizer is moving higher. There's a global food crisis that's affecting countless countries around the world. I estimate that CVR Partners is priced at 3x this year's earnings. As always, happy to discuss my thesis further in the comments section.

May 03

CVR Partners: Q1 Results, Cash Distribution Is Less Than Expected

CVR Partners' cash distribution leaves much to be desired. CVR Partners' cash distribution of $2.26 is a lot less than the $8.00 that I forecast for Q1 2022. Nevertheless, all the macro conditions that got us here remain strong. Indeed, if anything, the outlook has even improved. CVR Partners is a very attractive investment opportunity. As always, happy to discuss more in the comments section.

Shareholder Returns

UANUS ChemicalsUS Market
7D-1.3%3.6%6.6%
1Y82.3%-8.4%-18.4%

Return vs Industry: UAN exceeded the US Chemicals industry which returned -8.4% over the past year.

Return vs Market: UAN exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is UAN's price volatile compared to industry and market?
UAN volatility
UAN Average Weekly Movement9.3%
Chemicals Industry Average Movement7.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: UAN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: UAN's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2007296Mark Pytoshhttps://www.cvrpartners.com

CVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States. The company offers ammonia products for agricultural and industrial customers; and urea and ammonium nitrate products to agricultural customers, as well as retailers and distributors. CVR GP, LLC serves as the general partner of the company.

CVR Partners Fundamentals Summary

How do CVR Partners's earnings and revenue compare to its market cap?
UAN fundamental statistics
Market CapUS$1.12b
Earnings (TTM)US$197.20m
Revenue (TTM)US$694.53m

5.7x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UAN income statement (TTM)
RevenueUS$694.53m
Cost of RevenueUS$331.62m
Gross ProfitUS$362.91m
Other ExpensesUS$165.71m
EarningsUS$197.20m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)18.66
Gross Margin52.25%
Net Profit Margin28.39%
Debt/Equity Ratio148.7%

How did UAN perform over the long term?

See historical performance and comparison

Dividends

19.7%

Current Dividend Yield

66%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is UAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UAN?

Other financial metrics that can be useful for relative valuation.

UAN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.2x
Enterprise Value/EBITDA4.6x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does UAN's PE Ratio compare to its peers?

UAN PE Ratio vs Peers
The above table shows the PE ratio for UAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.1x
IPI Intrepid Potash
2.3xn/aUS$630.2m
AVD American Vanguard
26.5x24.0%US$675.4m
SMG Scotts Miracle-Gro
11.2x12.6%US$4.6b
FMC FMC
16.3x8.2%US$13.6b
UAN CVR Partners
5.7xn/aUS$1.1b

Price-To-Earnings vs Peers: UAN is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (14.1x).


Price to Earnings Ratio vs Industry

How does UAN's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: UAN is good value based on its Price-To-Earnings Ratio (5.7x) compared to the US Chemicals industry average (16.1x)


Price to Earnings Ratio vs Fair Ratio

What is UAN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate UAN's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of UAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UAN ($106.29) is trading below our estimate of fair value ($6816.47)

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


Price to Earnings Growth Ratio

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


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Future Growth

How is CVR Partners forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.7%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CVR Partners has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine whether CVR Partners is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • CVR Partners competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has CVR Partners performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


28.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UAN has high quality earnings.

Growing Profit Margin: UAN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: UAN has become profitable over the past 5 years, growing earnings by 28.6% per year.

Accelerating Growth: UAN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: UAN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (30.2%).


Return on Equity

High ROE: Whilst UAN's Return on Equity (53.66%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is CVR Partners's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: UAN's short term assets ($253.7M) exceed its short term liabilities ($173.2M).

Long Term Liabilities: UAN's short term assets ($253.7M) do not cover its long term liabilities ($562.0M).


Debt to Equity History and Analysis

Debt Level: UAN's net debt to equity ratio (111.3%) is considered high.

Reducing Debt: UAN's debt to equity ratio has increased from 101.5% to 148.7% over the past 5 years.

Debt Coverage: UAN's debt is well covered by operating cash flow (60.4%).

Interest Coverage: UAN's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


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Dividend

What is CVR Partners's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


19.72%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UAN's dividend (19.72%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: UAN's dividend (19.72%) is in the top 25% of dividend payers in the US market (4.24%)


Stability and Growth of Payments

Stable Dividend: UAN's dividend payments have been volatile in the past 10 years.

Growing Dividend: UAN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (65.8%), UAN's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (72.7%), UAN's dividend payments are covered by cash flows.


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Management

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

3.9yrs

Average management tenure


CEO

Mark Pytosh (56 yo)

8.08yrs

Tenure

US$2,467,896

Compensation

Mr. Mark A. Pytosh has been a Director of CVR GP, LLC at CVR Partners, LP since June 2011. He has been the Chief Executive Officer and President of CVR GP, LLC at CVR Partners, LP since May 5, 2014. He ser...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.47M) is below average for companies of similar size in the US market ($USD4.02M).

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


Leadership Team

Experienced Management: UAN's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: UAN's board of directors are considered experienced (8.1 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

CVR Partners, LP's employee growth, exchange listings and data sources


Key Information

  • Name: CVR Partners, LP
  • Ticker: UAN
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Implied Market Cap: US$1.123b
  • Shares outstanding: 10.57m
  • Website: https://www.cvrpartners.com

Number of Employees


Location

  • CVR Partners, LP
  • 2277 Plaza Drive
  • Suite 500
  • Sugar Land
  • Texas
  • 77479
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.