One-glance verdict
Undervalued
$110.66 our estimate vs market $82.00
Wall Street consensus: $86.57 (-21.8% lower than our fair-value estimate)
26% below our estimate, below the bear case
Fundamentals snapshot
Par Pacific Holdings, Inc.
PARR · NYQ · Energy · Oil & Gas Refining & Marketing
Current price
$82.00
52-week range
$33.21 - $87.72
Market cap
$4.11B
Balance sheet
Watch
6.19x Adequate
Net debt $949.03M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 15.5% last year.
- Reward Returns 53.5% on equity, ahead of 66% of its peers.
- Risk Net debt grew 179.9% over 3 years.
- Risk Forward P/E (5.9x) is higher than trailing (4.8x) - earnings are expected to drop.
What this company does
Par Pacific Holdings, Inc.
Par Pacific is an energy company that primarily makes money by turning crude oil into fuels like gasoline and diesel. The company then sells these fuels through its own network of gas stations and convenience stores, mostly in the western United States. Because Par Pacific owns the refineries, pipelines, and pumps, it controls its own supply chain (the entire process of making and selling a product), which helps it manage costs and keep fuel available for its customers.
How the company got here
Par Pacific started in 1984 and for many years was mainly an investment firm. It transformed into the energy company it is today through a series of key purchases, starting in 2013 with the acquisition of a refinery and retail business in Hawaii. This gave them a strong foothold in a unique, isolated market. The company then expanded into the Rocky Mountains and the Pacific Northwest by buying refineries and logistics assets in Wyoming (2016), Washington (2019), and Montana (2023), building its presence in these regions.
What it actually does
Par Pacific takes crude oil and turns it into fuels you use every day, like gasoline, diesel, and jet fuel. They sell these fuels to various customers, including airlines and commercial clients, and directly to you at their gas stations. The company also operates a network of pipelines, ships, and storage tanks to move and store both the raw crude oil and the finished fuel products. They focus on serving markets that are geographically isolated or complex to supply, like Hawaii and parts of the Rockies and Pacific Northwest.
Refining
This is the company's largest and most important business, making up the vast majority of its revenue. The refining segment takes raw crude oil and processes it in its four refineries located in Hawaii, Washington, Wyoming, and Montana. These refineries produce essential products like gasoline for cars, jet fuel for planes, and asphalt for paving roads. The customers for these products are large-scale buyers, such as other fuel distributors and airlines, who purchase the fuel in bulk.
Retail
This is the part of the company you are most likely to see in person. Par Pacific operates a network of over 120 gas stations and convenience stores in Hawaii, Washington, and Idaho. You might recognize them by brand names like Hele, 76, and nomnom. At these locations, everyday customers pay for gasoline and diesel fuel, as well as items inside the store like snacks and drinks. While smaller than the refining business, this segment provides a steady and growing source of income for the company.
Logistics
This segment is the physical network that connects the company's refining and retail businesses. It includes pipelines, storage tanks, marine vessels, and trucking operations that transport crude oil to the refineries and finished fuels to customers. This part of the business earns money by moving and storing its own products efficiently and sometimes by providing these services to other companies. Having this strong logistics network is a key advantage, especially in the hard-to-reach markets where Par Pacific operates.
What management is betting on now
The company is focused on growing by acquiring energy assets in complex markets where there is less competition. A major priority is investing in renewable fuels, such as a project to produce sustainable aviation fuel at its Hawaii refinery. They are also spending money to improve their convenience stores, aiming to increase sales by offering better food and an enhanced layout. Management is also focused on running its refineries safely and reliably, believing this is crucial for long-term success and profitability.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$50.16M
FY2024 Q4
$-63.14M
FY2025 Q1
$-42.33M
FY2025 Q2
$85.45M
FY2025 Q3
$187.08M
FY2025 Q4
$66.27M
FY2026 Q1
$-83.78M
FY2026 Q2
$242.86M
Revenue
$2.97B
Net income
$462.13M
Diluted EPS
9.35
Operating cash flow
$282.57M
Free cash flow
$242.86M
Fetching…
Sources
Revenue
$1.82B
Net income
$54.45M
Diluted EPS
1.10
Operating cash flow
$-40.71M
Free cash flow
$-83.78M
Fetching…
Sources
Revenue
$1.81B
Net income
$77.70M
Diluted EPS
1.40
Operating cash flow
$93.80M
Free cash flow
$66.27M
Fetching…
Sources
Revenue
$2.01B
Net income
$262.63M
Diluted EPS
5.16
Operating cash flow
$219.36M
Free cash flow
$187.08M
Fetching…
Sources
Revenue
$1.89B
Net income
$59.46M
Diluted EPS
1.17
Operating cash flow
$133.58M
Free cash flow
$85.45M
Fetching…
Sources
Revenue
$1.75B
Net income
$-30.40M
Diluted EPS
-0.57
Operating cash flow
$-1.40M
Free cash flow
$-42.33M
Fetching…
Sources
Revenue
$1.83B
Net income
$-55.70M
Diluted EPS
-0.98
Operating cash flow
$-15.47M
Free cash flow
$-63.14M
Fetching…
Sources
Revenue
$2.14B
Net income
$7.49M
Diluted EPS
0.13
Operating cash flow
$78.49M
Free cash flow
$50.16M
Fetching…
Sources
Is it cheap or expensive?
Fair value $110.66 vs current price $82.00
Wall Street consensus is the average analyst price target: $86.57 (-21.8% lower than our fair-value estimate).
Our most-likely fair value is $110.66 a share — about 35.0% above today's price of $82.00, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $949.0M. Interest coverage 6.2x.
Net debt
$949.03M
Interest coverage
6.19x
Par Pacific Holdings, Inc.'s profit covers its interest bill about 6.2 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
PARR
BASELINE
Par Pacific Holdings, Inc.
Total debt $1.13B Interest coverage 6.19x This is the baseline the peer rows are being compared against.
Total debt $3.43B Interest coverage 0.92x -85% vs PARR Carries about 6.7x less debt cushion than PARR.
Total debt $2.52B Interest coverage -4.46x -100% vs PARR This peer has almost no interest-payment cushion compared with PARR.
Total debt $1.80B Interest coverage 1.69x -73% vs PARR Carries about 3.7x less debt cushion than PARR.
Total debt $3.34B Interest coverage 4.27x -31% vs PARR Carries about 1.4x less debt cushion than PARR.
Total debt $34.29B Interest coverage 4.08x -34% vs PARR Carries about 1.5x less debt cushion than PARR.
What you should know
The case for and against PARR
3 Rewards
3 Risks
Rewards
-
Revenue grew 15.5% last year.
-
Returns 53.5% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Net debt grew 179.9% over 3 years.
-
Forward P/E (5.9x) is higher than trailing (4.8x) - earnings are expected to drop.
-
Stock trades 22.6% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
4.81x
Forward P/E
5.93x
P/B
2.04x
P/S
0.48x
EV/EBITDA
3.97x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
23.1%
Operating margin
21.1%
Net margin
9.9%
ROE
53.5%
ROA
16.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.56x
Current ratio
1.84x
Quick ratio
0.52x
Total debt
$1.13B
Total cash
$185.00M
Growth
How the business has been compounding
Revenue TTM
$8.62B
Revenue 5Y CAGR
12.2%
EPS TTM
17.04
EPS 5Y CAGR
5.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$555.02M
Free CF TTM
$296.46M
FCF margin
3.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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