DK is now undervalued and could go up 355%
Jun 03, 2025, 12:00 PM
22.69%
What does DK do
Delek US Holdings, headquartered in Brentwood, Tennessee, operates in petroleum refining, logistics, and retail, employing 3,591 people. The company went public on May 4, 2006, and has biodiesel facilities in three states.
Based on our analysis, Delek US Holdings has been assigned an undervalued rating of 4 out of 5 stars by Cashu due to several key financial metrics that suggest potential for improvement and growth.
The company exhibits a Price-to-Book (PB) Ratio of 3.74, significantly higher than the sector average of 1.58. This indicates that the market values Delek's assets more than those of its peers, hinting at an underlying strength within its asset base that may not be fully recognized by investors.
In terms of profitability, Delek's Net Profit Margin stands at -4.73, slightly worse than the sector's -4.42. While negative margins indicate ongoing challenges, they also suggest that there may be room for operational improvements that could restore profitability.
The Return on Equity (ROE) for Delek is recorded at -179.16, compared to the sector's -5.18. This strikingly negative figure reflects significant losses relative to shareholder equity, but it may also signal an opportunity for turnaround as the company seeks to enhance its financial performance and shareholder returns.
On a positive note, Delek offers a Dividend Yield of 5.63, exceeding the sector's 4.92. This attractive yield may appeal to income-seeking investors and suggests a commitment to returning value to shareholders despite current challenges.
Lastly, the Return on Assets Ratio is -8.41, worse than the sector's -5.29. Similar to the ROE, this indicates inefficiencies but also highlights potential for improvement in asset utilization.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Energy
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