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Calumet Specialty Products (CLMT)
NASDAQ:CLMT
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Calumet Specialty Products
(NASDAQ:CLMT)
42Neutral
Positive Factors
Debt Management
Calumet received $782M as the first tranche of the $1.44B loan from the U.S. Department of Energy’s Loan Programs Office, of which, the company used $554M to pay down its third-party debt.
Financial Performance
Gross profit in 4Q24 was $83.6M compared to $22.1M in 4Q23.
Negative Factors
Regulatory Challenges
Regulatory uncertainty is a primary concern affecting the company's outlook.
Calumet Specialty Products (CLMT) vs. S&P 500 (SPY)
Market Cap
$929.74M
Dividend YieldN/A
Average Volume (3M)1.46M
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth0.21%
EPS Growth-430.18%
CountryUS
Employees1,580
SectorEnergy
Sector Strength73
IndustryFossil Fuels
Share Statistics
EPS (TTM)-2.63
Shares Outstanding86,207,115
10 Day Avg. Volume1,498,467
30 Day Avg. Volume1,464,474
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.23
Price to Cash Flow (P/CF)-69.40
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.60Price Target Upside109.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Calumet Specialty Products Business Overview & Revenue Model
Company DescriptionCalumet Specialty Products Partners LP engages in the production of specialty hydrocarbon products. It operates through the following the Specialty Products and Fuel Products segments. The Specialty Products segment produces a variety of lubricating oils, solvents, waxes, synthetic lubricants, and other products for automotive, industrial, and consumer goods; and includes synthetic lubricants used in manufacturing, mining, and automotive applications. The Fuel Products segment involves in processing of crude oil into a variety of fuel and fuel-related products, including unleaded gasoline, diesel, and jet fuel. The company was founded on September 27, 2005 and is headquartered in Indianapolis, IN.
How the Company Makes MoneyCalumet Specialty Products generates revenue primarily from the sale of its specialty hydrocarbon products. The company's key revenue streams include the production and distribution of finished lubricants, solvents, and waxes, which are sold to a broad customer base comprising industrial, automotive, and consumer markets. Calumet's revenue model is supported by its extensive manufacturing capabilities and refining expertise, allowing it to produce customized solutions tailored to specific customer needs. In addition, strategic partnerships and long-term supply agreements with key customers and suppliers play a significant role in ensuring stable demand and supply chain efficiency, contributing positively to the company's earnings.
Calumet Specialty Products Financial Statement Overview
Summary
Calumet Specialty Products is facing significant financial challenges across all aspects of its financial statements. The company struggles with declining revenues, profitability issues, high leverage, negative equity, and deteriorating cash flow, indicating a need for operational and financial restructuring.Income Statement
The company has experienced inconsistent revenue trends, with a decline from 2022 to 2023 and a slight increase in 2024. The gross profit margin has significantly reduced over the years, and net profit margin is negative, indicating profitability issues. EBIT and EBITDA margins have also decreased sharply, and the company reported a net loss in 2024, highlighting ongoing profitability challenges.40
Negative
Balance Sheet
Calumet Specialty Products displays a high debt-to-equity ratio due to negative stockholders' equity, indicating financial instability and leverage risk. The equity ratio is concerning as liabilities exceed assets, and the return on equity (ROE) is not meaningful due to negative equity. These factors suggest potential solvency issues.30
Negative
Cash Flow
The company struggles with negative free cash flow, and free cash flow has shown volatility over the years. Operating cash flow is negative in 2024, reflecting operational challenges. The free cash flow to net income ratio is negative, indicating cash flow issues despite reported losses. These metrics highlight liquidity concerns.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.19B | 4.18B | 4.69B | 3.15B | 2.27B | Gross Profit |
| 230.80M | 451.70M | 350.80M | 142.90M | 210.10M | EBIT |
| 8.10M | 267.20M | 133.40M | -81.90M | -68.60M | EBITDA |
| 164.50M | 418.20M | 127.40M | 15.60M | 98.00M | Net Income Common Stockholders |
| -222.00M | 48.10M | -171.80M | -260.10M | -149.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 38.10M | 7.90M | 35.20M | 38.10M | 109.40M | Total Assets |
| 2.76B | 2.75B | 2.74B | 2.13B | 1.81B | Total Debt |
| 276.50M | 2.19B | 1.67B | 1.58B | 1.41B | Net Debt |
| 238.40M | 1.99B | 1.63B | 1.55B | 1.30B | Total Liabilities |
| 3.22B | 3.00B | 3.03B | 2.51B | 1.94B | Stockholders Equity |
| -711.90M | -491.60M | -287.70M | -10.10M | -12.30M |
| Cash Flow | Free Cash Flow | |||
| -123.10M | -286.70M | -435.60M | -126.90M | 18.80M | Operating Cash Flow |
| -46.40M | -14.90M | 100.60M | -44.00M | 62.80M | Investing Cash Flow |
| -76.70M | -271.80M | -536.00M | -82.80M | -46.30M | Financing Cash Flow |
| 154.30M | 266.20M | 348.70M | 139.30M | 73.80M |
Calumet Specialty Products Technical Analysis
Negative
10.78
Price Trends
17.03
Negative
19.14
Negative
17.78
Negative
Market Momentum
-1.57
Positive
20.79
Positive
5.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLMT, the sentiment is Negative. The current price of 10.78 is below the 20-day moving average (MA) of 14.46, below the 50-day MA of 17.03, and below the 200-day MA of 17.78, indicating a bearish trend. The MACD of -1.57 indicates Positive momentum. The RSI at 20.79 is Positive, neither overbought nor oversold. The STOCH value of 5.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLMT.
Calumet Specialty Products Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $51.42B | 25.27 | 7.27% | 3.65% | -2.81% | -68.00% | |
67 Neutral | $41.97B | 13.50 | 16.33% | 2.55% | -6.70% | -57.85% | |
63 Neutral | $38.75B | 14.78 | 10.86% | 3.42% | -10.37% | -65.69% | |
57 Neutral | $8.36B | 5.49 | -6.03% | 7.47% | 0.03% | -68.64% | |
47 Neutral | $861.43M | ― | -108.21% | 7.29% | -28.68% | -4373.94% | |
46 Neutral | $2.32B | ― | -8.87% | 5.04% | -13.59% | -127.47% | |
42 Neutral | $929.74M | ― | 31.18% | ― | 0.21% | -430.18% |
* Energy Sector Average
Performance Comparison
CLMT
Calumet Specialty Products
10.78
-3.92
-26.67%
DK
Delek US Holdings
13.78
-12.05
-46.65%
MPC
Marathon Petroleum
134.72
-50.24
-27.16%
PSX
Phillips 66
123.98
-25.33
-16.96%
VLO
Valero Energy
123.03
-31.03
-20.14%
PBF
PBF Energy
20.04
-33.09
-62.28%
Calumet Specialty Products Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -28.04% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant strategic achievements such as the successful conversion to a C-Corp, reduction of debt, and operational improvements in Montana Renewables. However, these are tempered by challenges in the commodity markets and regulatory uncertainties. The sentiment is neutral as positive strategic developments are balanced by external market challenges.Highlights
Conversion to C-Corp and Debt Reduction
Calumet, Inc. converted from a master limited partnership to a C-Corp, resulting in a reduction of cash debt service by roughly one-third.
Royal Purple Industrial Sale
Announced the sale of Royal Purple Industrial business for $110 million, intended to reduce debt and enhance the specialty strategy.
Specialties Business Volume Growth
Specialty products and solutions teams grew volume by 7% year-over-year, with Performance Brands volumes growing 22%, contributing $51 million to adjusted EBITDA.
Montana Renewables Cost Reduction
The cost structure at Montana Renewables improved to $0.70 per gallon from $1.30, with a fully loaded operational cost, further expected to reduce to $0.40 per gallon.
DOE Loan Secured
Completed funding of a $782 million DOE loan, reducing expensive project financing debt and allowing for operational cash flow increase.
Lowlights
Weak Commodity Environment Impact
Specialty margins were affected by a weakened commodity environment, driving a decline in Gulf Coast industry fuel margins.
Montana Asphalt Commodity Headwinds
Montana Asphalt faced significant commodity headwinds, with WCS differential and Rocky Mountain fuel cracks softening during Q4 2024.
PTC and BTC Uncertainty
Uncertainty around Production Tax Credit (PTC) and Blenders Tax Credit (BTC) created challenges in the renewable diesel market.
Company Guidance
During the Calumet, Inc. Fourth Quarter and Full Year 2024 Results Conference Call, the company provided comprehensive guidance on several key metrics for 2025. The company announced a strategic shift to a C-Corp structure, reducing cash debt service by approximately one-third and enhancing cash flow growth. They successfully sold the Royal Purple Industrial business for $110 million, which will be used to reduce debt and support their specialty strategy. The specialties business saw a 7% volume increase, with Performance Brands volumes growing 22%, contributing $51 million in adjusted EBITDA. Safety performance improved significantly, with a TRIR of 0.47, while specialty operations reduced costs by over $1 per barrel. Montana Renewables achieved cost targets of $0.70 per gallon for renewables and improved reliability, positioning for growth with a $40 million to $60 million MaxSAF expansion. Overall, the company emphasized deleveraging and cash flow generation as key objectives for 2025, with expectations of continued specialty margins over $60 per barrel and anticipated SAF market expansion.Calumet Specialty Products Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Calumet Specialty Products Streamlines Finances with Loan Guarantee
Positive
Feb 24, 2025
On February 18, 2025, Montana Renewables, LLC, a subsidiary of Calumet, Inc., terminated several financing agreements following the funding of the first tranche of a $1.44 billion loan guarantee from the U.S. Department of Energy. The termination of these agreements allowed MRL to repurchase key assets and repay outstanding loans, thereby streamlining its financial structure and potentially enhancing its operational efficiency.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.