Investment Thesis
CVR Energy is unprofitable with negative operating income of $145M and net losses of $192M, while carrying excessive leverage of 3.16x debt/equity that cannot be serviced from operations (negative interest coverage of -5.4x). Revenue is declining 5.9% YoY with minimal free cash flow margins of 0.9%, indicating fundamental business deterioration in a cyclical industry.
Strengths
- Maintains positive operating cash flow of $64M despite net losses, demonstrating some underlying operational cash generation
- Cash position of $512M provides near-term liquidity cushion for debt servicing
- Current ratio of 1.44x supports ability to cover short-term obligations
Risks
- Deep operational losses with negative operating margin of -7.3% and net margin of -9.7% indicate core business failure
- Debt/equity ratio of 3.16x combined with negative interest coverage of -5.4x creates acute solvency risk and financial distress
- Revenue declining 5.9% YoY paired with negative ROE of -35.7% suggests deteriorating competitive position with shareholder value destruction
Key Metrics to Watch
- Path to operating profitability and stabilization of gross margins
- Debt service capability and leverage ratio reduction trajectory
- Free cash flow sustainability and cash runway depletion timeline
Financial Metrics
Revenue
2.0B
Net Income
-192.0M
EPS (Diluted)
$-1.91
Free Cash Flow
17.0M
Total Assets
3.9B
Cash
512.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-7.3%
Net Margin
-9.7%
ROE
-35.7%
ROA
-5.0%
FCF Margin
0.9%
Balance Sheet & Liquidity
Current Ratio
1.44x
Quick Ratio
0.89x
Debt/Equity
3.16x
Debt/Assets
0.0%
Interest Coverage
-5.35x
Long-term Debt
1.7B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T12:20:36.044190 |
Data as of: 2026-03-31 |
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