CVR Partners (UAN) AI Stock Analysis

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CVR Partners

(NYSE:UAN)

74Outperform

CVR Partners scores well due to strong financial stability with zero debt and positive cash flow. The stock enjoys favorable technical indicators and a compelling dividend yield, despite facing revenue and profitability challenges. The latest earnings call supports a positive outlook with strong operational performance, although caution is warranted due to declining UAN prices and increasing operating expenses.

CVR Partners (UAN) vs. S&P 500 (SPY)

Market Cap

$866.71M

Dividend Yield8.24%

Average Volume (3M)34.38K

Price to Earnings (P/E)11.5

Beta (1Y)0.62

Revenue Growth-7.27%

EPS Growth-9.30%

CountryUS

Employees316

SectorBasic Materials

Sector Strength60

IndustryAgricultural Inputs

Share Statistics

EPS (TTM)2.56

Shares Outstanding10,569,637

10 Day Avg. Volume39,103

30 Day Avg. Volume34,383

Financial Highlights & Ratios

PEG Ratio0.48

Price to Book (P/B)2.86

Price to Sales (P/S)0.00

P/FCF Ratio10.89

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

CVR Partners Business Overview & Revenue Model

Company DescriptionCVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States. The company offers ammonia products for agricultural and industrial customers; and urea and ammonium nitrate products to agricultural customers, as well as retailers and distributors. CVR GP, LLC serves as the general partner of the company. CVR Partners, LP was incorporated in 2007 and is headquartered in Sugar Land, Texas.

How the Company Makes MoneyCVR Partners makes money primarily through the production and sale of nitrogen fertilizer products, including ammonia and urea ammonium nitrate (UAN) solutions. The company's revenue is generated by supplying these essential agricultural inputs to farmers, agricultural retailers, and distributors. The pricing of their products is influenced by factors such as natural gas prices, which are a key input cost, as well as market demand for agricultural products. Significant partnerships with agricultural distributors and retailers also play a role in the distribution and sales of their products, contributing to their earnings. Additionally, the company's revenue is impacted by seasonal planting cycles and the broader agricultural economy.

CVR Partners Financial Statement Overview

Summary

CVR Partners presents a mixed financial picture. The company faces revenue and profitability challenges, but operational efficiency is maintained. The balance sheet is strong, with no debt and significant cash reserves, providing stability. Cash flow remains positive, although it has decreased, pointing to effective cash management. Overall, while there are areas of concern, particularly in revenue and profit margins, the company remains financially stable.

Income Statement

Positive

CVR Partners' income statement shows a decline in total revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is negative, indicating cost pressures. The net profit margin has decreased significantly compared to the previous year, highlighting reduced profitability. The company has shown negative revenue growth compared to 2023, but maintains a positive EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.

Balance Sheet

Positive

The balance sheet reflects a strong position with zero debt and a healthy cash balance, enhancing financial stability. The equity ratio is robust, indicating a solid capital structure. However, the decrease in stockholders' equity compared to previous years suggests potential challenges in equity retention or asset growth.

Cash Flow

Positive

The cash flow statement is strong, with positive free cash flow in the TTM (Trailing-Twelve-Months), although it has decreased compared to the prior year. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. The company effectively manages its capital expenditures to ensure positive free cash flow.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
540.52M	525.32M	681.48M	835.58M	532.58M	349.95M
	Gross Profit
133.93M	118.86M	232.46M	352.37M	162.04M	24.84M
	EBIT
104.89M	90.35M	201.41M	239.15M	66.66M	-69.25M
	EBITDA
132.59M	178.90M	281.10M	403.16M	212.67M	41.35M
	Net Income Common Stockholders
75.41M	60.90M	172.43M	286.80M	78.16M	-98.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
121.78M	90.86M	45.28M	86.34M	112.52M	30.56M
	Total Assets
1.01B	1.02B	975.33M	1.10B	1.13B	1.03B
	Total Debt
0.00	572.89M	550.48M	549.73M	610.64M	639.49M
	Net Debt
452.05M	482.04M	505.20M	463.39M	498.13M	608.93M
	Total Liabilities
712.29M	725.65M	672.45M	688.59M	784.86M	718.64M
	Stockholders Equity
301.66M	404.42M	302.88M	286.80M	342.20M	314.24M
Cash Flow		Free Cash Flow
79.14M	113.47M	219.33M	256.80M	168.13M	1.14M
	Operating Cash Flow
163.51M	150.54M	243.53M	301.46M	188.72M	19.74M
	Investing Cash Flow
-32.38M	-31.89M	-2.72M	-44.62M	-20.34M	-18.55M
	Financing Cash Flow
-73.98M	-73.07M	-281.86M	-283.02M	-86.43M	-7.63M

CVR Partners Technical Analysis

Technical Analysis Sentiment

Positive

Last Price82.00

Price Trends

50DMA

74.35

Positive

100DMA

74.62

Positive

200DMA

70.69

Positive

Market Momentum

MACD

2.40

Negative

RSI

70.37

Negative

STOCH

47.23

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UAN, the sentiment is Positive. The current price of 82 is above the 20-day moving average (MA) of 78.15, above the 50-day MA of 74.35, and above the 200-day MA of 70.69, indicating a bullish trend. The MACD of 2.40 indicates Negative momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 47.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UAN.

CVR Partners Risk Analysis

CVR Partners disclosed 48 risk factors in its most recent earnings report. CVR Partners reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

CVR Partners Peers Comparison

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	80 Outperform	$14.22B	11.58	26.14%	2.28%	0.66%	25.75%
UAN	74 Outperform	$866.71M	11.49	25.16%	8.24%	-7.27%	-9.30%
MOS	72 Outperform	$11.17B	30.39	3.09%	2.41%	-13.37%	-50.63%
FMC	65 Neutral	$5.00B	15.36	8.81%	5.80%	1.45%	-70.85%
IPI	64 Neutral	$483.93M	―	-35.32%	―	0.63%	-369.50%
SMG	58 Neutral	$3.60B	124.70	4.98%	4.23%	0.75%	―
Sector *	50 Neutral	$1.98B	-1.06	-21.29%	3.61%	1.95%	-30.61%

* Basic Materials Sector Average

Performance Comparison

UAN

CVR Partners

82.00

2.82

3.56%

Cf Industries Holdings

87.78

11.09

14.46%

FMC

40.02

-21.04

-34.46%

IPI

Intrepid Potash

36.34

10.03

38.12%

MOS

Mosaic Co

35.21

5.40

18.11%

SMG

Scotts Miracle-Gro Company

62.45

-3.99

-6.01%

CVR Partners Earnings Call Summary

Earnings Call Date:Apr 28, 2025

(Q1-2025)

% Change Since: 5.93%|

Next Earnings Date:Aug 04, 2025

Earnings Call Sentiment Positive

The earnings call highlights a strong financial performance with significant net sales, income, and high ammonia utilization, supported by favorable agricultural conditions. However, challenges such as declining UAN prices, increased operating expenses, and potential impacts of tariffs are noteworthy. Despite these challenges, the overall sentiment is positive due to the outweighing financial and operational strengths.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

Net sales of $143 million, net income of $27 million, and EBITDA of $53 million for the first quarter of 2025. A distribution of $2.26 per common unit was declared.

High Ammonia Utilization and Production

Consolidated ammonia plant utilization was at 101%, with combined ammonia production of 216,000 gross tons.

Increased Ammonia Prices

Ammonia prices increased by 5% from the prior year period.

Favorable Agricultural Conditions

USDA estimates suggest strong demand for nitrogen fertilizer with 95 million acres of corn and 83 million acres of soybeans to be planted in 2025.

Significant Liquidity Position

Total liquidity of $172 million, including $122 million in cash.

Negative Updates

UAN Price Decline

UAN prices declined by 4% due to some delayed shipments of 2024 fill season volumes.

Increased Operating Expenses

Direct operating expenses increased by approximately $1 million due to higher natural gas and electricity costs.

Potential Impact of Tariffs

Tariffs on both fertilizer and grains could impact domestic prices and farmer economics, with geopolitical risks also posing a threat.

Company Guidance

During the first quarter of 2025, CVR Partners reported net sales of $143 million, net income of $27 million, and EBITDA of $53 million. The Board of Directors declared a distribution of $2.26 per common unit, which will be paid on May 19th. The facilities achieved a consolidated ammonia plant utilization rate of 101%, producing 216,000 gross tons of ammonia and 348,000 tons of UAN. Sales included approximately 336,000 tons of UAN at an average price of $256 per ton and 60,000 tons of ammonia at an average price of $554 per ton. Total liquidity at the end of the quarter was $172 million, comprising $122 million in cash and $50 million available under the ABL facility. Looking forward, the company anticipates an ammonia utilization rate of 93% to 97% and direct operating expenses between $57 million and $62 million in the second quarter. Total capital spending for 2025 is estimated to range from $50 million to $60 million, primarily for maintenance. Additionally, the USDA projects corn plantings at 95 million acres and soybean plantings at 83 million acres for the spring, supporting strong demand for nitrogen fertilizer.

CVR Partners Corporate Events

DividendsFinancial Disclosures

CVR Partners Reports Strong Q1 2025 Performance

Positive

Apr 28, 2025

CVR Partners reported a strong performance in the first quarter of 2025 with a net income of $27 million, or $2.56 per common unit, and EBITDA of $53 million on net sales of $143 million. This marks an improvement from the first quarter of 2024, where the net income was $13 million. The company declared a cash distribution of $2.26 per common unit, reflecting its focus on high plant utilization and cash flow generation amid tight supply and demand balances for nitrogen fertilizer products.

Spark’s Take on UAN Stock

According to Spark, TipRanks’ AI Analyst, UAN is a Outperform.

CVR Partners scores moderately well with strong valuation and a high dividend yield. Financial stability is supported by operational efficiency, zero debt, and positive cash flow, despite revenue and margin pressures. Technical indicators suggest caution, while the earnings call highlights strategic strengths and market opportunities, balancing some operational challenges.

To see Spark’s full report on UAN stock, click here.

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.