The resurgence in global oil demand following China's reopening and OPEC+'s oil production cuts has set a bullish trend for oil prices. Against this backdrop, PBF Energy Inc.’s (PBF) solid key financial metrics and meaningful partnerships could make this stock a solid portfolio addition.
Below, we take a look at some of PBF’s key financial metrics:
PBF Energy's Fluctuating Revenues and Gross Margin Growth
Overall, the net income of PBF has fluctuated over the last two years, with a growth rate of almost 620%. The net income started at -$554.3 million in June 2020, before dropping to a low of -$2.327 billion a year later in September 2021. The situation improved dramatically in the last six months, culminating in a net income of $28.768 billion in December 2022.
PBF’s revenue has generally been fluctuating. From June 2020 to December 2021, the company's revenue decreased by 28.7% from $20.53 billion to $15.12 billion. However, after December 2021, the revenue increased significantly, reaching a peak of $46.83 billion in December 2022, which is an increase of 209.2% compared to June 2020.
The gross margin of PBF has seen a steady overall increase over the last two years, with fluctuating trends in-between. From June 2020 to September 2022, the gross margin increased from negative 0.035% to 0.1%, indicating a growth rate of 186%. The most significant increase was seen between September 2021 and December 2021, when the gross margin rose from 0.014% to 0.033%, a 135% change.
Analysis of PBF Energy Stock Price Increase
The share price of PBF has generally been increasing over this period of two months--from October 21, 2022, to April 19, 2023, the share price rose from $43.70 to $36.55. Initially, the trend was quite steep, with a growth rate of $1.13 per week, but the rate slowly began to decrease over time and had declined to $0.44 by mid-April. Here is a chart of PBF's price over the past 180 days.
Powerful Performance: Analyzing PBF’s POWR Ratings
PBF has an overall POWR grade of B, which translates to a Buy in our POWR Ratings system. Compared to the 91 stocks in the Energy – Oil & Gas category, it currently ranks 4th and is improving steadily, making it an attractive investment. Its latest POWR grade is B.
The three most noteworthy dimensions of the POWR Ratings for PBF are Momentum, Value, and Quality. Momentum has consistently received ratings of 97 through 100 from October 2022 to April 2023, showing a clear positive trend. Similarly, Value has been rated at 98 or higher, with a peak of 100 in March 2023. The same period has seen Quality ratings range from 86-90, indicating a solid consistency for this parameter.
How does PBF Energy Inc. (PBF) Stack Up Against its Peers?
Other stocks in the Energy - Oil & Gas sector that may be worth considering are Valero Energy Corporation (VLO), Marathon Petroleum Corporation (MPC), and Phillips 66 (PSX) -- they have better POWR Ratings.
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PBF shares were trading at $36.63 per share on Wednesday afternoon, down $1.12 (-2.97%). Year-to-date, PBF has declined -9.77%, versus a 8.72% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
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