Active Runner in Focus - HollyFrontier Corp (HFC)

Shares of HollyFrontier Corp (HFC) have seen the needle move -0.30% or -0.10 in the most recent session. The NYSE listed company saw a recent bid of 33.57 on 282543 volume.

Investors might be trying to figure out how to play the stock market at current levels. The optimist may see much more upward action in the future while the pessimist may be waiting for the impending disaster. Buying into the market at these levels will no doubt come with a bit of caution. Even at these levels, there may still be some good buys. The average individual investor may need to spend a little more time doing the homework, but it may pay off handsomely if the stock market decides to break out higher. As companies start to report quarterly earnings, investors will be watching to see what types of trends emerge. A generally upbeat earnings season may give the bulls more strength to breakout and continue the charge higher into the later stages of the year.

Now let’s take a look at how the fundamentals are stacking up for HollyFrontier Corp (HFC). Fundamental analysis takes into consideration market, industry and stock conditions to help determine if the shares are correctly valued. HollyFrontier Corp currently has a yearly EPS of 0.79. This number is derived from the total net income divided by shares outstanding. In other words, EPS reveals how profitable a company is on a share owner basis.

Turning to Return on Assets or ROA, HollyFrontier Corp (HFC) has a current ROA of -2.87. This is a profitability ratio that measures net income generated from total company assets during a given period. This ratio reveals how quick a company can turn it’s assets into profits. In other words, the ratio provides insight into the profitability of a firm’s assets. The ratio is calculated by dividing total net income by the average total assets. A higher ROA compared to peers in the same industry, would suggest that company management is able to effectively generate profits from their assets. Similar to the other ratios, a lower number might raise red flags about management’s ability when compared to other companies in a similar sector.

Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. HollyFrontier Corp (HFC) currently has Return on Equity of -5.26. ROE is a ratio that measures profits generated from the investments received from shareholders. In other words, the ratio reveals how effective the firm is at turning shareholder investment into company profits. A company with high ROE typically reflects well on management and how well a company is run at a high level. A firm with a lower ROE might encourage potential investors to dig further to see why profits aren’t being generated from shareholder money.

Another ratio we can look at is the Return on Invested Capital or more commonly referred to as ROIC. HollyFrontier Corp (HFC) has a current ROIC of -3.96. ROIC is calculated by dividing Net Income - Dividends by Total Capital Invested.

Similar to ROE, ROIC measures how effectively company management is using invested capital to generate company income. A high ROIC number typically reflects positively on company management while a low number typically reflects the opposite.

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