Genesis Energy L.P. Common Units (GEL)

FairStock Score: 37/100 — MIXED

Key Financials

Strengths

• Generates $133 million in annual free cash flow (6.4% yield on market cap)
• Strong Piotroski F-Score of 9/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 13.5% above cost of capital
• Attractive 4.5% dividend yield providing steady income returns

Concerns

• High leverage at 5.93x 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 39.3% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Genesis Energy L.P. Common Units is a small-cap energy company valued at $2.1 billion. Revenue stands at $1.7 billion, though the company is currently unprofitable. From a quality standpoint, Genesis shows near-perfect Piotroski F-Score of 9/9 indicating exceptional financial health and distressed Altman Z-Score of 0.4 warrants caution. On valuation, the stock is solid 4.2% FCF yield. Growth dynamics show revenue growing at -39.3% and profit growth of 140.2%. The 4.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 37/100 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. With $133 million in annual free cash flow (6.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. 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