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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 45.4GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-22.2%
Sector: 6.7%
Dividend Analysis audit
INCOME
3.16%
Trailing Yield
$3.16
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
45%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Delek US Holdings, Inc. (DK) receives a "Hold" rating with a composite score of 49.9/100, ranked #430 out of 4446 stocks. Key factor scores: Quality 45/100, Value 58/100, Momentum 73/100. This is quantitative analysis only — not investment advice.
Delek US Holdings, Inc. (DK) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Delek US Holdings, Inc. Do?
Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates through three segments: Refining, Logistics, and Retail. The Refining segment processes crude oil and other feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminal. It owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as three biodiesel facilities in Crossett, Arkansas, Cleburne, Texas, and New Albany. The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties. It owns or leases capacity on approximately 400 miles of crude oil transportation pipelines, approximately 450 miles of refined product pipelines, an approximately 900-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 10.2 million barrels of active shell capacity; and owns and operates ten light product distribution terminals, as well as markets light products using third-party terminals. The Retail segment owns and leases 248 convenience store sites located primarily in West Texas and New Mexico. Its convenience stores offer various grades of gasoline and diesel under the DK or Alon brand; and food products and service, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise, as well as money orders to the public primarily under the 7-Eleven and DK or Alon brand names. It serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, the U.S. government, and independent retail fuel operators. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee. Delek US Holdings, Inc. (DK) is classified as a mid-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Avigal Soreq and employs approximately 3,310 people. With a market capitalization of $2.7B, DK is one of the notable companies in the Energy sector.
Delek US Holdings, Inc. (DK) Stock Rating — Hold (April 2026)
As of April 2026, Delek US Holdings, Inc. receives a Hold rating with a composite score of 49.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.DK ranks #430 out of 4,446 stocks in our coverage universe. Within the Energy sector, Delek US Holdings, Inc. ranks #55 of 128 stocks, placing it in the upper half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DK Stock Price and 52-Week Range
Delek US Holdings, Inc. (DK) currently trades at $41.74. The stock gained $0.63 (1.5%) in the most recent trading session. The 52-week high for DK is $45.74, which means the stock is currently trading -8.7% from its annual peak. The 52-week low is $11.03, putting the stock 278.6% above its annual trough. Recent trading volume was 1.1M shares, reflecting moderate market activity.
Is DK Overvalued or Undervalued? — Valuation Analysis
Delek US Holdings, Inc. (DK) carries a value factor score of 58/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 14.18x, compared to the Energy sector average of 19.63x — a discount of 28%. The price-to-book ratio stands at 4.88x, versus the sector average of 1.64x. The price-to-sales ratio is 0.24x, compared to 0.47x for the average Energy stock. On an enterprise value basis, DK trades at 153.74x EV/EBITDA, versus 3.50x for the sector.
Overall, DK's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Delek US Holdings, Inc. Profitability — ROE, Margins, and Quality Score
Delek US Holdings, Inc. (DK) earns a quality factor score of 45/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -22.2%, compared to the Energy sector average of 6.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -1.8% versus the sector average of 3.7%.
On a margin basis, Delek US Holdings, Inc. reports gross margins of 3.1%, compared to 52.7% for the sector. The operating margin is 0.1% (sector: 10.7%). Net profit margin stands at -1.2%, versus 6.4% for the average Energy stock. Revenue growth is running at -12.7% on a trailing basis, compared to -1.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
DK Debt, Balance Sheet, and Financial Health
Delek US Holdings, Inc. has a debt-to-equity ratio of 591.0%, compared to the Energy sector average of 55.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.82x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $3.23B. Cash and equivalents stand at $631M.
DK has a beta of 1.09, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Delek US Holdings, Inc. is 43/100, reflecting average volatility within the normal range for its sector.
Delek US Holdings, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Delek US Holdings, Inc. reported revenue of $11.34B and earnings per share (EPS) of $-0.38. Net income for the quarter was $-121M. Gross margin was 3.1%. Operating income came in at $15M.
In FY 2025, Delek US Holdings, Inc. reported revenue of $10.72B and earnings per share (EPS) of $-0.38. Net income for the quarter was $43M. Gross margin was 5.7%. Revenue grew -9.5% year-over-year compared to FY 2024. Operating income came in at $301M.
In Q3 2025, Delek US Holdings, Inc. reported revenue of $2.89B and earnings per share (EPS) of $2.96. Net income for the quarter was $195M. Gross margin was 13.8%. Revenue grew -5.1% year-over-year compared to Q3 2024. Operating income came in at $296M.
In Q2 2025, Delek US Holdings, Inc. reported revenue of $2.76B and earnings per share (EPS) of $-1.76. Net income for the quarter was $-90M. Gross margin was 1.9%. Revenue grew -16.4% year-over-year compared to Q2 2024. Operating income came in at $-34M.
Over the past 8 quarters, Delek US Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $3.31B to $11.34B. Investors analyzing DK stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DK Dividend Yield and Income Analysis
Delek US Holdings, Inc. (DK) currently pays a dividend yield of 3.2%. At this yield, a $10,000 investment in DK stock would generate approximately $$316.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning DK offers above-average income for its sector.
DK Momentum and Technical Analysis Profile
Delek US Holdings, Inc. (DK) has a momentum factor score of 73/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 12/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
DK vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing DK against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DK vs S&P 500 (SPY) comparison to assess how Delek US Holdings, Inc. stacks up against the broader market across all factor dimensions.
DK Next Earnings Date
No upcoming earnings date has been announced for Delek US Holdings, Inc. (DK) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DK? — Investment Thesis Summary
Delek US Holdings, Inc. presents a balanced picture with arguments on both sides. Price momentum is positive at 73/100, suggesting the trend favors buyers.
In summary, Delek US Holdings, Inc. (DK) earns a Hold rating with a composite score of 49.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DK stock.
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Institutional Research Dossier
Delek US Holdings, Inc. (DK) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Delek US Holdings (DK). While the company operates in an essential industry and possesses some attractive valuation metrics, its volatile financial performance, significant debt burden, and exposure to commodity price fluctuations temper our enthusiasm. The downstream energy sector is inherently cyclical, and DK's recent struggles with profitability raise concerns about its ability to consistently generate shareholder value.
The company's refining segment, while strategically positioned, is subject to fluctuating crack spreads and operational risks. The logistics segment provides some stability, but the retail segment faces increasing competition. Ultimately, DK's high leverage and inconsistent profitability make it a higher-risk investment within the energy sector, justifying our Hold rating until we see sustained improvement in financial performance and a reduction in debt.
Business Strategy & Overview
Delek US Holdings operates as an integrated downstream energy company, participating in refining, logistics, and retail. The refining segment, its core business, processes crude oil into gasoline, diesel, and other petroleum products. The company's four refineries are strategically located to access various crude oil sources and serve regional markets. The logistics segment supports the refining operations by gathering, transporting, and storing crude oil and refined products. This segment also generates revenue from third-party services, providing a degree of diversification. The retail segment operates convenience stores under the DK, Alon, and 7-Eleven brands, selling fuel, food, and merchandise.
DK's strategy focuses on optimizing its refining operations, expanding its logistics infrastructure, and enhancing its retail offerings. The company aims to improve refinery efficiency, increase throughput, and capture higher margins. In the logistics segment, DK seeks to expand its pipeline network and storage capacity to support its refining operations and serve third-party customers. The retail segment focuses on improving store layouts, expanding product offerings, and enhancing customer service to drive sales and profitability.
The company's business model is heavily influenced by commodity prices, particularly crude oil and refined product prices. Refining margins, or crack spreads, are a key driver of profitability. These margins fluctuate based on supply and demand dynamics, refinery utilization rates, and regional price differences. The logistics segment provides a more stable revenue stream, as it is less directly exposed to commodity price volatility. The retail segment is also relatively stable, but it faces competition from other convenience stores and gas stations.
Delek's strategic positioning within the downstream energy sector allows it to capture value at multiple points in the value chain. However, the company's reliance on refining margins and its exposure to commodity price fluctuations make its financial performance volatile. The company's ability to execute its strategy and improve its operational efficiency will be critical to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-12.7%
Sector: -1.2%
+988% VS SCTR
Economic Moat Analysis
Delek US Holdings possesses a narrow economic moat, primarily derived from its strategically located refining assets and its integrated logistics network. The refining industry, in general, benefits from high barriers to entry due to the significant capital investment required to build and operate refineries. Delek's refineries, located in the Mid-Continent and Gulf Coast regions, benefit from access to various crude oil sources and proximity to key markets. This geographic advantage provides a modest cost advantage over competitors who may face higher transportation costs.
The company's logistics segment, which includes pipelines and storage terminals, further strengthens its competitive position. The integrated logistics network allows Delek to efficiently transport crude oil to its refineries and distribute refined products to its customers. This integrated model provides a cost advantage and enhances the reliability of its supply chain. However, the logistics segment is not exclusive to Delek, as other companies also operate pipelines and storage terminals in the region.
The retail segment, which operates convenience stores, faces intense competition from other retailers and gas stations. This segment offers limited differentiation and lacks a significant economic moat. The company's brand recognition in certain regions provides a slight advantage, but it is not sufficient to create a sustainable competitive advantage.
While Delek's refining assets and logistics network provide a narrow economic moat, the company's overall competitive advantage is limited by its exposure to commodity price fluctuations and its reliance on refining margins. The company's ability to consistently generate above-average returns on invested capital is uncertain, given the cyclical nature of the refining industry and the intense competition in the retail segment. Therefore, we believe that Delek's economic moat is narrow and vulnerable to changes in market conditions.
Financial Health & Profitability
Delek US Holdings' financial health presents a mixed picture. The company's revenue has been volatile, reflecting the cyclical nature of the refining industry and fluctuations in commodity prices. The TTM revenue of $10.72 billion represents a significant decrease compared to the $16.92 billion reported in FY2023, highlighting the impact of lower refining margins and reduced demand. The company's profitability has also been inconsistent, with net income fluctuating significantly from year to year. The TTM net income of $43.30 million is a substantial improvement compared to the net loss of $520.90 million in FY2024, but it is still below the $46.70 million reported in FY2023.
The company's gross margin and operating margin have also been volatile, reflecting the impact of fluctuating refining margins. The TTM gross margin of 3.2% and operating margin of 0.1% are significantly lower than the sector averages of 55.1% and 10.6%, respectively. This indicates that Delek is struggling to generate profits compared to its peers. However, the Q3 FY2025 results show a significant improvement in gross margin (13.8%) and operating margin (10.2%), suggesting a potential turnaround in profitability.
Delek's balance sheet is heavily leveraged, with total debt of $3.23 billion and total cash of $630.90 million. The company's debt-to-equity ratio of 591.00 is significantly higher than the sector average of 55.00, indicating a high level of financial risk. The current ratio of 0.82 suggests that the company may face challenges in meeting its short-term obligations. The negative free cash flow of $-37.61 million further exacerbates the company's financial challenges.
The company's return on equity (ROE) of -22.2% is significantly lower than the sector average of 6.9%, reflecting its poor profitability and high leverage. The company's ability to generate positive free cash flow and reduce its debt burden will be critical to improving its financial health. The recent improvement in refining margins and the company's efforts to optimize its operations may provide some relief, but the company's financial health remains a concern.
Valuation Assessment
Delek US Holdings' valuation presents a mixed picture. The company's P/E ratio of 14.2x is lower than the sector average of 19.5x, suggesting that the stock may be undervalued relative to its earnings. However, the company's volatile earnings history and high leverage make it difficult to assess its true earnings potential. The company's EV/EBITDA ratio of 4.5x is higher than the sector average of 3.5x, indicating that the stock may be overvalued relative to its cash flow. This discrepancy between the P/E and EV/EBITDA ratios highlights the challenges in valuing Delek, given its inconsistent profitability and high debt burden.
The company's negative free cash flow further complicates the valuation assessment. A negative free cash flow indicates that the company is not generating enough cash to cover its capital expenditures and other obligations. This can put pressure on the company's balance sheet and limit its ability to invest in growth opportunities. The company's high debt burden also limits its financial flexibility and increases its risk profile.
Given the company's volatile earnings, high leverage, and negative free cash flow, it is difficult to determine its intrinsic value with certainty. A discounted cash flow analysis would be highly sensitive to assumptions about future refining margins, commodity prices, and capital expenditures. A relative valuation approach, using sector averages, may not be appropriate, given Delek's unique financial characteristics.
Overall, Delek's valuation appears to be fair, given its current financial performance and risk profile. The company's low P/E ratio may attract value investors, but its high leverage and inconsistent profitability should give them pause. The company's ability to improve its financial performance and generate positive free cash flow will be critical to unlocking its true value. Until then, we believe that the stock is fairly valued at its current price.
Risk & Uncertainty
Delek US Holdings faces several significant risks and uncertainties. The most prominent risk is its exposure to commodity price fluctuations, particularly crude oil and refined product prices. Refining margins, or crack spreads, are a key driver of profitability, and these margins can be highly volatile due to supply and demand imbalances, refinery outages, and geopolitical events. A decline in refining margins could significantly reduce Delek's earnings and cash flow.
Another significant risk is the company's high debt burden. Delek's debt-to-equity ratio is significantly higher than the sector average, indicating a high level of financial risk. The company's high debt burden limits its financial flexibility and increases its vulnerability to adverse economic conditions. A rise in interest rates could also increase the company's debt service costs and further strain its financial resources.
The company also faces regulatory risks related to environmental regulations and safety standards. Refineries are subject to strict environmental regulations, and any violations could result in significant fines and penalties. Changes in environmental regulations could also require the company to make costly investments in its refining operations. Safety is also a critical concern, and any accidents or incidents at the company's refineries could result in injuries, property damage, and reputational harm.
Competition is another significant risk. The refining industry is highly competitive, and Delek faces competition from other refiners, both large and small. The retail segment is also highly competitive, with numerous convenience stores and gas stations vying for customers. Increased competition could put pressure on Delek's margins and market share.
Bulls Say / Bears Say
The Bull Case
BULL VIEWDelek's strategic refinery locations provide a cost advantage, allowing it to capitalize on regional crude oil price differentials and serve growing demand in key markets.
BULL VIEWThe company's integrated logistics network enhances its operational efficiency and provides a stable revenue stream, mitigating the volatility of refining margins.
BULL VIEWRecent improvements in refining margins and operational efficiencies signal a turnaround in profitability, making the stock undervalued at its current price.
The Bear Case
BEAR VIEWDelek's high debt burden and negative free cash flow raise concerns about its financial stability and ability to invest in future growth.
BEAR VIEWThe company's reliance on volatile refining margins exposes it to significant earnings risk, making it difficult to predict its future financial performance.
BEAR VIEWIntense competition in the retail segment and increasing regulatory scrutiny could further pressure Delek's margins and limit its growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score DK and 4,400+ other equities.
Delek US Holdings, Inc. exhibits a 1104% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-1.8%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
3.1%
Sector: 52.7%
Operating Margin
Core business profitability
0.1%
Sector: 10.7%
Net Margin
Bottom-line profitability
-1.2%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+67%
Income Projection audit
A $10,000 investment would generate approximately $316 annually in dividends at the current trailing rate.
