Genesis Energy (GEL) AI Stock Analysis

• Market Cap: $1.99B
• Dividend Yield: 4.07%
• Average Volume (3M): 389.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -28.72%
• EPS Growth: -1173.53%
• Country: US
• Employees: 2,055
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): -0.12
• Shares Outstanding: 122,424,324
• 10 Day Avg. Volume: 236,437
• 30 Day Avg. Volume: 389,484
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.13
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 20.94
• Enterprise Value/Ebitda: 12.63
• 1Y Price Target: $19.50
• Price Target Upside: 20.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $16.00 ▼(-1.30% Downside)

Genesis Energy's overall stock score is primarily impacted by its financial challenges, including declining revenues and high leverage. While there are positive developments in project execution and future cash flow expectations, the current financial health remains a significant concern. Technical indicators and valuation provide some support, but the risks outweigh the strengths at this time.

Positive Factors

Project Commissioning

The successful commissioning of the Shenandoah project enhances Genesis Energy's production capabilities, potentially increasing revenue and strengthening its market position in the midstream energy sector.

Offshore Pipeline Growth

Growth in the Offshore Pipeline Transportation segment indicates a robust demand for Genesis Energy's services, supporting long-term revenue growth and operational stability.

Cash Flow Generation

The anticipated generation of free cash flow will enhance financial flexibility, allowing Genesis Energy to reduce debt and potentially increase distributions to stakeholders.

Negative Factors

High Leverage

High leverage poses financial risks, limiting Genesis Energy's ability to invest in growth opportunities and increasing vulnerability to market fluctuations.

Declining Revenues

Declining revenues indicate challenges in maintaining market share and pricing power, which could impact long-term profitability and competitive positioning.

Negative Net Income

Negative net income reflects operational inefficiencies and financial strain, potentially hindering Genesis Energy's ability to fund future growth and innovation.

Genesis Energy Business Overview & Revenue Model

Company Description

Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry. The company's Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations; and in the deepwater pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico. This segment owns interests in approximately 1,422 miles of crude oil pipelines located offshore in the Gulf of Mexico. Its Sodium Minerals and Sulfur Services segment offers sulfur-extraction services to refining operations; and operates storage and transportation assets. This segment provides services to ten refining operations; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. Its Onshore Facilities and Transportation segment offers onshore facilities and transportation services to Gulf Coast crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products. It operates trucks, trailers, railcars, and terminals and tankage with 4.2 million barrels of storage capacity in various locations along the Gulf Coast. This segment also transports crude oil. It owns four onshore crude oil pipeline systems with approximately 450 miles of pipe in Alabama, Florida, Louisiana, Mississippi, and Texas; and four operational crude oil rail unloading facilities in Baton Rouge, Raceland, and Louisiana, as well as Walnut Hill, Florida and Natchez, Mississippi. Its Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges with a combined transportation capacity of 3.2 million barrels; and 42 push/tow boats. In addition, the company produces natural soda ash. Genesis Energy, LLC serves as a general partner of the company. The company was incorporated in 1996 and is headquartered in Houston, Texas.

How the Company Makes Money

Genesis Energy generates revenue through multiple streams, primarily by providing midstream services such as the transportation and storage of crude oil and natural gas. The company operates an extensive network of pipelines and terminals that facilitate the movement of oil and gas from production sites to refineries and markets. Key revenue streams include fees collected from customers for the use of its transportation infrastructure, which are often structured as long-term contracts with major oil and gas producers. Additionally, Genesis Energy earns income from its marine transportation services, which involve the movement of petroleum products via tankers and barges. The company also benefits from its investments in sodium mineral production, generating revenue from the sale of these industrial products. Significant partnerships with major energy companies and a strategic focus on expanding its operational capacity contribute to its overall earnings, positioning Genesis Energy as a vital player in the energy supply chain.

Genesis Energy Financial Statement Overview

Summary

Genesis Energy faces significant financial challenges, with declining revenues, high leverage, and cash flow issues. While there are some operational improvements, the negative net income and high debt levels pose substantial risks. The company needs to address its profitability and leverage to improve its financial health.

Income Statement

Genesis Energy's income statement reveals a challenging period with declining revenues and negative net income. The TTM data shows a significant revenue decline of 14.61% and a net profit margin of -24.19%, indicating profitability issues. However, the gross profit margin improved to 13.37% from the previous year's 10.74%, suggesting some operational efficiency gains. The EBIT and EBITDA margins are relatively stable, but the negative net income is a major concern.

Balance Sheet

The balance sheet highlights high leverage with a debt-to-equity ratio of 11.13 in the TTM period, up from 3.95 in the previous year. This indicates increased financial risk. The return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows a sharp decline in free cash flow growth by 93.55% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is 0.37, suggesting that operating cash flow is not sufficient to cover the negative net income. The free cash flow to net income ratio is also negative, highlighting cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.22B	2.97B	3.18B	2.79B	2.13B	1.82B
Gross Profit	296.27M	318.48M	395.20M	341.61M	136.88M	113.83M
EBITDA	491.03M	580.28M	661.64M	571.22M	385.44M	115.25M
Net Income	-536.04M	-63.95M	117.72M	129.13M	-138.03M	-400.31M
Balance Sheet
Total Assets	4.84B	7.04B	7.02B	6.37B	5.91B	5.93B
Cash, Cash Equivalents and Short-Term Investments	4.45M	10.75M	9.23M	26.57M	24.99M	27.02M
Total Debt	3.11B	4.35B	4.00B	3.46B	2.98B	3.39B
Total Liabilities	4.12B	5.52B	5.31B	4.59B	3.93B	4.18B
Stockholders Equity	279.25M	1.10B	1.34B	6.11M	-5.61M	-9.37M
Cash Flow
Free Cash Flow	-7.62M	-195.21M	-98.89M	-89.80M	36.56M	152.61M
Operating Cash Flow	233.08M	391.93M	521.13M	334.39M	337.95M	296.75M
Investing Cash Flow	645.02M	-552.16M	-593.65M	-374.52M	-274.12M	-103.76M
Financing Cash Flow	-906.15M	161.74M	73.99M	41.70M	-65.86M	-222.38M

Genesis Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEL, the sentiment is Negative. The current price of 16.21 is below the 20-day moving average (MA) of 16.48, below the 50-day MA of 16.68, and above the 200-day MA of 14.34, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 27.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEL.

Genesis Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSW	77 Outperform	$2.32B	9.79	12.61%	6.94%	-22.01%	-54.34%
TNK	76 Outperform	$1.78B	6.39	15.78%	3.89%	-21.71%	-37.58%
STNG	75 Outperform	$2.87B	7.51	12.13%	2.79%	-34.54%	-42.46%
DKL	73 Outperform	$2.39B	15.17	542.39%	9.89%	-12.08%	1.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GLP	60 Neutral	$1.58B	17.83	13.89%	6.38%	3.74%	-4.49%
GEL	45 Neutral	$1.99B	―	-14.68%	4.07%	-28.72%	-1173.53%