FutureFuel Corp. (NYSE:FF)

CAPS Rating: 5 out of 5

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Member Avatar simplemts (< 20) Submitted: 9/15/2014 8:28:33 PM : Underperform Start Price: $13.18 FF Score: +2.38

Short-Term.

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Member Avatar germanjuggler (68.60) Submitted: 1/8/2014 6:40:58 AM : Outperform Start Price: $11.31 FF Score: -24.62

target for 12 month (FF) 19,50 - 20,50 buck

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Member Avatar grankh (69.89) Submitted: 10/19/2013 7:10:56 PM : Outperform Start Price: $17.45 FF Score: -42.56

Another real-life holding of mine. FutureFuel Corp. engages in the manufacture and sale of diversified chemicals, biofuels, and biobased specialty chemicals in the United States.

Sales have grown at about 15% per year since 2007. EPS has grown about 23% per year since 2009. Their profit margin has been fluctuating around a value of 16% for the past 5 years, so not a consistent trend of improvement, unfortunately. However, their earned-on-equity has grown in each of the past 4 years. Also, they have NO DEBT. (One of my favorite things to see.) The current P/E is at the high end of its historic range, so no hope of P/E inflation to increase the stock price. The PEG ratio is very attractive. The stock pays about a 4% dividend yield, which was instituted in 2011 and raised in 2012, so that is a good sign. The payout ratio is still below 50% in 2012, so the dividend should be secure, and could potentially be raised again this year.

Assuming that the stock continues its current growth, and only slightly moderates its P/E, the stock could hit $40 in five years, or more than double its current price. Add in that pretty attractive 4% yield, and this stock could return me an average of 20% per year for the next 5 years. That is what I call an attractive return.

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Member Avatar Broskowski (26.15) Submitted: 9/11/2013 4:18:03 PM : Outperform Start Price: $16.82 FF Score: -41.17

110% EPS growth vs. same quarter last year. I think it will continue to grow over the next couple years.

Read more: http://www.nasdaq.com/article/buy-this-gasoline-killer-for-a-shot-at-tripledigit-returns-cm271034#ixzz2ecKSWzka

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Member Avatar ALPHADividend (91.63) Submitted: 4/8/2013 2:03:05 AM : Outperform Start Price: $11.49 FF Score: -16.06

new round of alphadividend picks:
underperform shorts on the 5 tickers:
hd,vz,sbux,t,mo

and outperform buys on the 5 tickers:
atri,nhc,bg,zeus,ff

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Member Avatar line70day (< 20) Submitted: 8/2/2012 2:26:48 PM : Outperform Start Price: $8.85 FF Score: -0.54

increase revenue - growing margin -no debt - managing co with exta cash - 4% div

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Member Avatar marketarbitrage (70.16) Submitted: 7/6/2012 4:11:55 AM : Outperform Start Price: $9.59 FF Score: -12.58

last batch of the jul12 long term picks

go long on : FF,KELYA,JRCC,
short on : CVLT,PCLN,ALXN,ANV

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Member Avatar KnowNoFear (21.03) Submitted: 5/30/2012 3:48:31 PM : Outperform Start Price: $9.47 FF Score: -14.75

Let's take a look at this 'strong buy': Cash flow- check. Decent PE- check. Low debt- double check. Return on investment- check. Good earnings estimates- check. Insider activity- neutral. Decent entry price- check. Should be an all systems go!

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Member Avatar hillside1313 (< 20) Submitted: 2/18/2012 1:32:25 PM : Outperform Start Price: $10.08 FF Score: -18.32

outperform

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Member Avatar ClimbinFool (71.36) Submitted: 1/31/2012 7:48:26 AM : Outperform Start Price: $10.99 FF Score: -33.67

Value screener test

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Member Avatar feynmanshomeboy (32.83) Submitted: 9/30/2011 1:38:05 PM : Outperform Start Price: $9.66 FF Score: -40.02

Profitable legacy businesses, two exciting areas of growth and $100m in cash for expansion and acquisition.

EV/EBITDA=6.5 - good value
YTD revenue growth yoy=30%
YTD earnings growth yoy=70%
NO DEBT

Legacy businesses-
They make those small blue bleach-activator pellets that go in Procter & Gamble's detergent products and a chemical used in a Roundup-like herbicide. Great ROI on the purchase of the chemical plant, plus lots of facilities available for new projects like . . .

Growth-
FutureFuel is the name, but until last quarter the chemical segment was the majority of their business. As of last quarter, biodiesel accounted for about 50% of revenues. CEO, Lee Mikles, also said that biodiesel production is only at a fraction of the plant's current capacity, so there's the possibility of growth without more capital investment. There is rightly concern about the wisdom of using food-grade feedstocks for energy production. In the past few quarters, FF has used only tallow-like waste fats and french fry oils. Many biodiesel producers were created by farmer co-ops which do not posses the asset to use these waste feedstocks. CEO has stated that corn and soy will only be used if they become much cheaper.

FF has quietly developed a presence is the lithium battery market over the last year. They're currently proving to their partner's specifications the carbon powder used in Li battery anodes. The most impressive part of the story is that FF had to pay nearly nothing to create the capital to start this new line. They received a $12m grant from the government and paid-in-kind to match that $12m with a shuttered facility on the property. In the filings for the government grant, available on SEC Edgar, ConocoPhillips is revealed as the partner in batteries. You can find out more about ConocoPhillips' batteries with a simple search. There are signs that these batteries will be used in GM electric vehicles, but it's not clear whether FF is involved in a current or next-generation battery design. However, it is clear that the current work is to prove the material meets the standards as opposed to it being a fundamental research project. Once proven, FF will sell the carbon material under a take-or-pay contract of several years' duration.

Acquisition and expansion-
The most impressive part about management has been the ability to turn very cheap production assets into great value in very little time. At the most recent Wedbush Clean Tech conference the CEO explicitly named the acquisition activity last year. I recommend you give it a listen while it's still available. FF bid on an asset that sold to another party for about a billion, but the company isn't willing to overpay. Why should they? The chairman, Paul Novelly, is in the company for $160 million, including an investment of $60 million last year. FF has the ability to raise the money to make a big move. Mr. Novelly is CEO of Apex Oil, a top 500 US private company.

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