Futurefuel (FF) AI Stock Analysis

• Market Cap: $182.06M
• Dividend Yield: 5.77%
• Average Volume (3M): 275.85K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.23
• Revenue Growth: -30.51%
• EPS Growth: 24.75%
• Country: US
• Employees: 515
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Chemicals
• EPS (TTM): 0.35
• Shares Outstanding: 43,763,245
• 10 Day Avg. Volume: 337,085
• 30 Day Avg. Volume: 275,845
• PEG Ratio: 0.21
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.66
• Price to Cash Flow (P/CF): 1.80
• P/FCF Ratio: 2.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Futurefuel's overall score is bolstered by strong financial health and promising corporate developments, such as the IRS approval for a clean fuel tax credit. These strengths are slightly offset by technical indicators suggesting a neutral outlook and concerns over declining revenue. However, its attractive valuation and solid dividend yield provide a strong foundation for long-term investors.

Futurefuel Business Overview & Revenue Model

Company Description

FutureFuel Corp., through its subsidiary, FutureFuel Chemical Company, manufactures and sells diversified chemical, bio-based fuel, and bio-based specialty chemical products in the United States. The company operates through two segments, Chemicals and Biofuels. The Chemicals segment provides various custom chemicals that are used in the agricultural chemical, coatings, chemical intermediates, industrial and consumer cleaning, oil and gas, and specialty polymers industries; and performance chemicals, such as polymer modifiers, glycerin products, and various specialty chemicals and solvents. The Biofuels segment is involved in the production and sale of biodiesel and petrodiesel blends; and the buying, sale, and shipping of refined petroleum products on common carrier pipelines. This segment markets its biodiesel products directly to customers through trucks, rail, and barges. FutureFuel Corp. is headquartered in Saint Louis, Missouri.

How the Company Makes Money

Futurefuel makes money primarily through the sale of its biofuel products, including biodiesel and other renewable chemicals. The company generates revenue by supplying these products to a diverse range of customers, including transportation companies, industrial clients, and government entities looking to reduce their carbon footprint. Additionally, Futurefuel may engage in strategic partnerships with other energy companies and participate in government incentive programs designed to promote renewable energy adoption, which can further enhance its revenue streams. The company's focus on innovation and sustainable practices also positions it to capitalize on emerging market opportunities in the renewable energy sector.

Futurefuel Financial Statement Overview

Summary

Futurefuel shows strong financial health with a robust balance sheet and healthy cash flow generation. Despite a decline in revenue, the company maintains profitability and operational efficiency. A low debt profile and strong equity position underscore financial stability. While revenue growth is a concern, strategic focus on efficiency and cash generation strengthens the company's financial position.

Income Statement

The company exhibits a strong net profit margin of 13.2% in the TTM period. However, revenue has decreased by 25.7% compared to the previous year, indicating a decline in top-line growth. The gross profit margin stands at 11.6%, which is relatively moderate. Despite the drop in revenue, the company has maintained profitability, highlighting operational efficiency.

Balance Sheet

Futurefuel has a very low debt-to-equity ratio of 0.0004, indicating minimal leverage and a strong equity position. The equity ratio is robust at 83.2%, reflecting financial stability. Return on equity is solid at 16.9%, showcasing effective utilization of shareholder funds. The balance sheet is strong with significant cash reserves, enhancing liquidity.

Cash Flow

The free cash flow has grown significantly by 235.7% in the TTM period, demonstrating improved cash generation. The operating cash flow to net income ratio is 1.74, indicating strong cash flow support for reported earnings. The free cash flow to net income ratio is 1.42, suggesting efficient capital management. Overall, cash flow is healthy with positive trends.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
273.84M	368.25M	396.01M	321.39M	204.50M	205.23M
	Gross Profit
31.64M	35.65M	28.99M	23.54M	31.31M	74.14M
	EBIT
18.68M	27.37M	26.09M	12.90M	22.34M	65.31M
	EBITDA
39.29M	47.87M	36.55M	23.35M	33.49M	77.40M
	Net Income Common Stockholders
36.09M	37.38M	15.21M	26.25M	46.56M	88.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
294.86M	219.44M	212.77M	184.71M	262.53M	316.95M
	Total Assets
471.15M	367.08M	355.97M	344.33M	441.30M	586.50M
	Total Debt
0.00	389.00K	630.00K	644.00K	491.00K	537.00K
	Net Debt
-214.97M	-219.06M	-175.01M	-136.88M	-197.63M	-242.79M
	Total Liabilities
82.08M	57.20M	72.97M	55.40M	69.42M	119.41M
	Stockholders Equity
389.08M	309.88M	283.00M	288.93M	371.88M	467.10M
Cash Flow		Free Cash Flow
51.28M	15.28M	47.76M	42.63M	91.94M	27.67M
	Operating Cash Flow
62.91M	21.30M	52.54M	44.08M	96.40M	34.64M
	Investing Cash Flow
-15.54M	33.02M	-3.83M	14.99M	474.00K	4.22M
	Financing Cash Flow
-119.90M	-10.52M	-10.50M	-119.68M	-142.09M	-10.50M

Futurefuel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FF, the sentiment is Negative. The current price of 4.16 is below the 20-day moving average (MA) of 4.27, below the 50-day MA of 4.71, and below the 200-day MA of 5.18, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 55.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FF.

Futurefuel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FF	78 Outperform	$182.06M	11.74	6.01%	5.77%	-30.51%	24.75%
KOP	65 Neutral	$571.35M	11.33	10.61%	1.00%	-2.88%	-41.29%
ORGN	47 Neutral	$104.88M	―	-22.00%	―	8.60%	-441.73%
Sector *	47 Neutral	$2.66B	-3.12	-21.25%	3.29%	3.66%	-28.03%
AMTX	40 Underperform	$98.11M	―	37.38%	―	43.34%	-56.81%
GEVO	39 Underperform	$271.73M	―	-15.02%	―	-1.66%	-18.31%

Futurefuel Corporate Events

FutureFuel Secures IRS Approval for Clean Fuel Credit

FutureFuel Corp. announced it has received Excise Tax Registration approval from the IRS, a crucial step to qualify for the Internal Revenue Code 45Z clean fuel production tax credit, effective from January 2025. This approval highlights FutureFuel’s strategic positioning in the renewable fuel market, with substantial capacity to produce 60 million gallons of biodiesel annually, potentially benefiting from upcoming IRS guidance on the tax credit.