As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is FutureFuel Corp. (NYSE: FF).
FutureFuel Corp manufactures and sells biofuels and chemicals through two segments based on the product type. The biofuel segment, which generates the majority of revenue, sells biodiesel and other petroleum products. Its fuels are made from the mix of diesel, vegetable oils, and grease feedstocks. The chemicals segment sells products that are used in the production of agricultural chemicals, which include herbicides, coatings, and cleaning products, which include detergents. Geographically, it derives majority of revenue from the United States.
A quick look at FutureFuel’s share price history (below) over the past twelve months shows that the price is down 30%, and here’s why the company is undervalued.
Summary
Market Cap: $433 Million
Enterprise Value: $118 Million
Operating Earnings*
Operating Earnings: $65 Million
Acquirer’s Multiple
Acquirer’s Multiple: 1.80
Free Cash Flow (TTM)
Free Cash Flow: $28 Million
FCF/EV Yield:
FCF/EV Yield: 23%
Other Indicators
Piotroski F-Score: 6
Altman Z-Score: 4.23
Beneish M-Score: -2.42
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