CVR Energy Inc. Common Stock (CVI)

FairStock Score: 17/100 — RISKY

Key Financials

Strengths

• Solid return on equity of 10.1% above cost of capital
• Attractive 4.7% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($7) with negative 365% margin of safety—limited downside protection
• High leverage at 2.04x debt-to-equity increases financial risk and interest expense burden
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Revenue declining at 7.0% year-over-year signals potential demand weakness or market share loss

AI Analysis

CVR Energy Inc. Common Stock is a small-cap energy company valued at $3.1 billion. Revenue stands at $7.2 billion, though the company is currently unprofitable. From a quality standpoint, CVR shows distressed Altman Z-Score of 1.0 warrants caution and adequate 10% ROE. On valuation, the stock is commanding a steep 115.6x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at -7.0% and profit growth of -479.3%. The 4.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 17/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 116x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer