Alon USA Energy, Inc. ($ALJ) Confident Investor Rating: Poor

Company name Alon USA Energy, Inc.
Stock ticker ALJ
Live stock price [stckqut]ALJ[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $24.28
Target stock price (averages with growth) $22.63
Target stock price (averages with no growth) $11.39
Target stock price (manual assumptions) $15.68

The following company description is from Google Finance: http://www.google.com/finance?q=alj

Alon USA Energy, Inc. is an independent refiner and marketer of petroleum products operating primarily in the South Central, Southwestern and Western regions of the United States. The Company’s crude oil refineries are located in Texas, California, Oregon and Louisiana and have a combined throughput capacity of approximately 250,000 barrels per day. The Company’s refineries produce petroleum products including various grades of gasoline, diesel fuel, jet fuel, petrochemicals, petrochemical feedstocks, asphalt, and other petroleum-based products.The Company operates in three segments: refining and unbranded marketing, asphalt and retail and branded marketing.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Alon USA Energy, Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $15.75

Growth: 0.1

Current EPS (TTM): $0.28

P/E: 56

Future EPS Calc: $0.45

Future Stock Price Calc: $25.25

Target stock price: $15.68

I hope that this makes you a better investor. [/s2If]

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