Calumet Inc (CLMT, Financial), a key player in the Oil & Gas industry, has recently seen a notable increase in its stock price. Over the past week, the company's shares have surged by 10.03%, and over the last three months, the stock has climbed by 12.21%. Currently, Calumet boasts a market capitalization of $1.54 billion. When comparing the current stock price of $17.93 to the GF Value of $16.09, the stock appears modestly overvalued. This valuation marks a shift from three months ago when it was considered fairly valued, with a past GF Value of $15.09.
Introduction to Calumet Inc
Calumet Inc specializes in the production of a diverse range of specialty products. These include base oils, specialty oils, solvents, esters, waxes, asphalt, and heavy fuel oils. The company not only manufactures but also formulates and markets these specialty branded products across various consumer-facing and industrial markets. This broad product base allows Calumet to maintain a robust presence in its sector.
Assessing Profitability
Calumet's financial health, as indicated by its Profitability Rank, stands at 5/10, suggesting moderate profitability. The company's Operating Margin is 5.78%, which is better than 44.17% of its peers in the industry. However, its Return on Assets (ROA) is -1.55%, although this still ranks better than 33.58% of 1,078 companies in the same sector. More impressively, Calumet's Return on Invested Capital (ROIC) is 9.92%, outperforming 74.86% of 1,070 companies. Despite these figures, Calumet has only been profitable for one year over the past decade, which is better than 9.53% of 944 companies.
Growth Metrics
The company's Growth Rank is 3/10, indicating below-average growth. However, Calumet has shown some positive trends in revenue growth. The 3-Year Revenue Growth Rate per Share is 21.70%, which is better than 56.52% of 844 companies. The 5-Year Revenue Growth Rate per Share stands at 5.70%, surpassing 47.44% of 782 companies. These figures suggest that while the overall growth rank is low, there are areas where Calumet is making significant strides.
Competitive Landscape
Calumet faces competition from several closely matched companies within the Oil & Gas industry. Dorchester Minerals LP (DMLP, Financial) has a market cap of $1.22 billion, while Kimbell Royalty Partners LP (KRP, Financial) is slightly larger at $1.29 billion. Another competitor, SilverBow Resources Inc (SBOW, Financial), has a market cap of $940.369 million. These companies represent the competitive environment in which Calumet operates, each vying for market share in a challenging industry.
Conclusion
In conclusion, Calumet Inc's recent stock performance reflects a positive market response to its operational strategies and product offerings. The company's shift from being fairly valued to modestly overvalued suggests a growing investor confidence, albeit with caution due to its valuation metrics. While profitability remains moderate and growth below average, specific areas like ROIC and revenue growth per share highlight underlying strengths. As Calumet navigates its competitive landscape, these factors will be crucial in sustaining its market position and potentially enhancing shareholder value.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
