Delek US Holdings, Inc. (NYSE:DK) Performance Analysis

• Delek US Holdings, Inc. (NYSE:DK) has a ROIC of -1.06% and a WACC of 8.33%, indicating inefficient capital utilization.
• CVR Energy, Inc. and PBF Energy Inc. show mixed results in capital efficiency, with CVR Energy displaying a closer to positive ROIC to WACC ratio.
• PDC Energy, Inc. stands out with a ROIC of 26.76% and a WACC of 14.21%, showcasing highly efficient capital utilization.

Delek US Holdings, Inc. (NYSE:DK) is a diversified downstream energy company involved in refining, logistics, and retail operations. The company operates in the United States and is part of the oil and gas industry, competing with firms like CVR Energy, Inc. (CVI), PBF Energy Inc. (PBF), and others. A key metric for evaluating Delek's performance is the comparison of its Return on Invested Capital (ROIC) to its Weighted Average Cost of Capital (WACC).

Delek US Holdings, Inc. has a ROIC of -1.06% and a WACC of 8.33%, resulting in a ROIC to WACC ratio of -0.13. This negative ratio indicates that Delek is not generating returns above its cost of capital, which can be concerning for investors. It suggests that the company is not using its capital efficiently to generate profits.

In contrast, CVR Energy, Inc. has a ROIC of 7.07% and a WACC of 7.51%, with a ROIC to WACC ratio of 0.94. This positive ratio shows that CVR Energy is closer to covering its cost of capital, although it still falls short. PBF Energy Inc., on the other hand, has a negative ROIC of -5.17% and a WACC of 8.42%, resulting in a ROIC to WACC ratio of -0.61, indicating inefficiency in capital utilization.

Delek Logistics Partners, LP, a related entity, shows a more favorable performance with a ROIC of 12.11% and a WACC of 11.20%, leading to a ROIC to WACC ratio of 1.08. This positive ratio suggests that Delek Logistics is generating returns above its cost of capital, indicating efficient capital use. Meanwhile, Par Pacific Holdings, Inc. has a ROIC of 6.95% and a WACC of 9.48%, with a ROIC to WACC ratio of 0.73, showing moderate efficiency.

PDC Energy, Inc. stands out with a ROIC of 26.76% and a WACC of 14.21%, resulting in the highest ROIC to WACC ratio of 1.88 among the peers. This indicates that PDC Energy is generating significantly higher returns on its invested capital compared to its cost of capital, making it an attractive option for investors seeking efficient capital utilization.