CVR Partners LP Common Units representing Limited Partner Interests (UAN)

FairStock Score: 47/100 — MIXED

Key Financials

Strengths

• Generates $87 million in annual free cash flow (6.4% yield on market cap)
• High return on equity of 35.3% demonstrating efficient capital deployment
• Attractive 8.3% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($73) with negative 77% margin of safety—limited downside protection
• High leverage at 2.20x debt-to-equity increases financial risk and interest expense burden
• Revenue declining at 6.1% year-over-year signals potential demand weakness or market share loss
• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

CVR Partners LP Common Units representing Limited Partner Interests is a micro-cap basic materials company valued at $1.4 billion. The business generates $606 million in annual revenue with a 5.8% net margin and $87 million in free cash flow. From a quality standpoint, CVR shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is attractively valued at 14.0x earnings, with trades above its Graham Number with a negative 77% margin. Growth dynamics show revenue growing at -6.1% and profit growth of -156.1%. The 8.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 47/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates CVR's consistent 35% ROE at just 14x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $87 million in annual free cash flow (6.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 2.2x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. 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