Why Tesoro’s Valuations Are Higher Than the Historical Averages
From 1Q15 to 1Q17, Tesoro’s EV-to-adjusted-EBITDA ratio stood at an average of 5.4x.
The correlation coefficient of Tesoro (TSO) versus WTI stands at 0.24.
The fall in bearish sentiment could be due to Tesoro’s (TSO) 1Q17 earnings, rising index values, and completion of the Western Refining acquisition.
Tesoro (TSO) is now trading at a forward price-to-earnings ratio of 15.1x, above its peer average of 13.6x.
Tesoro’s PEG ratio stands at 0.69, above the peer average of 0.42.
In 2Q17, Tesoro (TSO) paid a dividend of $0.55 per share, which represents 29% growth from 2Q15.
Institutional ownership in Tesoro (TSO) currently stands at ~69% of outstanding shares.
In 1Q17, TSO stock fell due to its 4Q16 earnings, which missed estimates, as well as high gasoline and distillate inventories in the industry.
Implied volatility in Tesoro fell from 28.1% on April 3, 2017, to 23.9% on June 21.
Of the 21 analysts covering Tesoro (TSO), 17 rated it as a “buy” in June 2017. Another four analysts rated TSO as a “hold.”
In 2Q17, Tesoro (TSO) completed the acquisition of Western Refining, which could lead to higher capacity and operational synergies. Since April 3, 2017, Tesoro (TSO) stock has risen 13%.
Phillips 66’s (PSX) adjusted EBITDA from its Marketing and Specialties segment fell 31.0% from 1Q16 to $235.0 million in 1Q17.
Phillips 66’s (PSX) income from its Midstream segment rose 17.0% over 1Q16 to $220.0 million in 1Q17.
Phillips 66’s (PSX) throughput fell 13.0% YoY (year-over-year) to 1,783 Mbpd (thousand barrels per day) due to turnaround activities.
Phillips 66’s (PSX) gasoline production fell 4.0% over 1Q16 to 916.0 Mbpd (thousand barrels per day).
In 1Q17, Phillips 66’s (PSX) total adjusted net income of $294.0 million fell 18.0% YoY. Its Refining segment posted an adjusted loss of $2.0 million.
Phillips 66’s (PSX) worldwide refining margin rose $1.40 per barrel, or 20.0%, over 1Q16 to $8.60 per barrel in 1Q17.
Six (or 30.0%) of the 20 analysts covering Phillips 66 (PSX) stock have rated it a “buy” in June 2017. Fourteen analysts (or 70.0%) have rated it a “hold.”
In 1Q17, PSX incurred 55.0% capex in the Refining segment, 39.0% in the Midstream segment, and 3.0% in the Marketing and Specialties segment.
In 1Q17, Phillips 66 (PSX) had negative cash from operations of $549.0 million due to seasonal inventory buildup.