Conclusion
FutureFuel Corp’s balance sheet was very healthy,
The company’s gross profit margin was very low.
The cash flow has been very stable, and the company has been generous to shareholders.
FutureFuel Corp’s stock price is $5.03 per share, which is equivalent to about $220 million in market capitalization.
We reckon that the reasonable valuation is about $300 million.
Disclaimer: The content is for reference only and does not constitute investment advice.
Asset condition analysis
FutureFuel Corp’s total assets were $367 million and $356 million in 2023 and 2022, respectively.
The company had cash and cash equivalents of $219 million in 2023.
Total liabilities were $57 million in 2023.
The debt ratio was 15.5% for 2023, which is vey low.
The balance sheet was very healthy.
Profitability analysis
FutureFuel Corp’s revenue was $368.2 million, $395.6 million and $320 million in 2023, 2022 and 2021, respectively.
Revenue in 2023 was down 7% year-on-year.
Revenue in 2022 was up 23.6% year-on-year.
Gross profit was $41 million, $29 million and $23.5 million in 2023, 2022 and 2021, respectively.
Gross profit margin was 11.1%, 7.3% and 7.3% in 2023, 2022 and 2021, respectively.
Net income was $37.4 million, $15.2 million and $26.3 million in 2023, 2022 and 2021, respectively.
The company ‘s gross profit was very low.
Cash flow analysis
Net cash provided by operating activities was $24 million, $52.5 million and $44 million in 2023, 2022 and 2021, respectively.
Payment of dividends was $10.5 million, $10.5 million and $120 million in 2023, 2022 and 2021, respectively.
FutureFuel Corp’s financial condition and operating results for Q1 2024.
The company’s total assets were $365 million and $367 million as of March 31, 2024 and December 31, 2023, respectively.
Total assets as of March 31, 2024, was almost flat.
Dividends payable was $117.3 million and $10.5 million as of March 31, 2024 and December 31, 2023, respectively.
Revenue was $58.3 million and $74.2 million in the three months ended March 31, 2024 and the three months ended March 31, 2023, respectively.
Net income was $4.3 million and $21 million in Q1 2024 and Q1 2023, respectively.
Net income provided by operating activities was -$12.2 million and -$29.8 million in Q1 2024 and Q1 2023, respectively.
Revenues and net income declined, but the loss of cash flow narrowed.
Introduction
FutureFuel Corp. (sometimes referred to as the “Company,” “we,” “us,” or “our,” and includes our wholly-owned subsidiaries) is a Delaware corporation, and, through its wholly-owned subsidiary, FutureFuel Chemical Company, manufactures diversified chemical products, bio-based fuel products, and bio-based specialty chemical products. Unless otherwise stated, all dollar amounts other than per share amounts are in thousands.
We are headquartered in St. Louis, Missouri, and our manufacturing operations are conducted at our facility in Batesville, Arkansas. Trading of our common stock on the New York Stock Exchange (“NYSE”) commenced on March 23, 2011 under the symbol “FF”.
During 2023, we distributed normal quarterly cash dividends of $0.06 per share. We have declared normal quarterly cash dividends of $0.06 per share on our common stock for the calendar year 2024. Additionally, during the first quarter of 2024, we declared a special cash dividend of $2.50 per share on our common stock payable on April 9, 2024, to the holders of record of all the issued and outstanding shares of common stock as of the close of business on March 26, 2024.
Our business is managed in two segments: chemicals and biofuels. The chemicals segment manufactures a diversified listing of chemical products that are sold to third party customers. The majority of the revenues from the chemicals segment are derived from the custom manufacturing of specialty chemicals for specific customers. We have actively worked to develop our chemicals business with new customers in more diversified growth markets. As part of that focus on growth, we have introduced procedural updates to our operation to allow re-entry to the pharma intermediates market. This capability has been validated by third party audits. Our chemicals business is based on a solid reputation as a technology-driven, highly reliable, and globally competitive chemicals producer. We retain a strong emphasis on operational excellence, cost control, and efficiency improvements to enable us to compete in the worldwide chemical industry.