Par Pacific Holdings Inc (PARR): A Deep Dive into Its Performance Potential
Long-established in the Oil & Gas industry, Par Pacific Holdings Inc (NYSE:PARR) has enjoyed a stellar reputation. It has recently witnessed a daily gain of 2.33%, juxtaposed with a three-month change of 37.85%. However, fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Par Pacific Holdings Inc.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Financial strength rank: 6/10
Profitability rank: 5/10
Growth rank: 5/10
GF Value rank: 1/10
Momentum rank: 6/10
Based on the above method, GuruFocus assigned Par Pacific Holdings Inc the GF Score of 65 out of 100, which signals poor future outperformance potential.
Snapshot of Par Pacific Holdings Inc's Business
Par Pacific Holdings Inc is an oil and gas company that manages and maintains interests in energy and infrastructure businesses. The company has three reportable segments namely Refining, Retail, and Logistics. Under its refining business, the company produces ultra-low-sulfur diesel, gasoline, jet fuel, marine fuel, LSFO, and other associated refined products. Its Retail segment includes operation licenses out brands to serve the retail consumer. Through the Logistics segment, crude shipments are delivered to the refinery, in addition to finished products that are exported. It generates maximum revenue from the Refining segment. The company has a market cap of $2.1 billion and sales of $7.3 billion, with an operating margin of 9.66%.
Profitability Breakdown
Par Pacific Holdings Inc's low Profitability rank can also raise warning signals. This rank is a measure of a company's profitability in comparison to other companies. A lower rank indicates lower profitability, which could be a red flag for potential investors.
Conclusion
Considering the company's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. While Par Pacific Holdings Inc has a strong history in the Oil & Gas industry, its current rankings suggest that it may struggle to maintain its performance in the future. This analysis serves as a reminder for investors to consider all aspects of a company's financial health before making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
