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Relative valuation derived from Industrials 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: 46.9GRADE 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
-280.8%
Sector: 8.9%
Dividend Analysis audit
INCOME
3.95%
Trailing Yield
$3.95
Per $100 Invested
Solid dividend yield for income-focused strategies.
Sector Avg Yield0.00%
Yield Delta—
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, GENESIS ENERGY LP (GEL) receives a "Hold" rating with a composite score of 46.5/100, ranked #409 out of 4446 stocks. Key factor scores: Quality 47/100, Value 52/100, Momentum 52/100. This is quantitative analysis only — not investment advice.
GENESIS ENERGY LP (GEL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does GENESIS ENERGY LP Do?
Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry. The company's Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations; and in the deepwater pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico. This segment owns interests in approximately 1,422 miles of crude oil pipelines located offshore in the Gulf of Mexico. Its Sodium Minerals and Sulfur Services segment offers sulfur-extraction services to refining operations; and operates storage and transportation assets. This segment provides services to ten refining operations; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. Its Onshore Facilities and Transportation segment offers onshore facilities and transportation services to Gulf Coast crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products. It operates trucks, trailers, railcars, and terminals and tankage with 4.2 million barrels of storage capacity in various locations along the Gulf Coast. This segment also transports crude oil. It owns four onshore crude oil pipeline systems with approximately 450 miles of pipe in Alabama, Florida, Louisiana, Mississippi, and Texas; and four operational crude oil rail unloading facilities in Baton Rouge, Raceland, and Louisiana, as well as Walnut Hill, Florida and Natchez, Mississippi. Its Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges with a combined transportation capacity of 3.2 million barrels; and 42 push/tow boats. In addition, the company produces natural soda ash. Genesis Energy, LLC serves as a general partner of the company. The company was incorporated in 1996 and is headquartered in Houston, Texas. GENESIS ENERGY LP (GEL) is classified as a mid-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Grant E. Sims and employs approximately 2,110 people, headquartered in Houston, Texas. With a market capitalization of $2.1B, GEL is one of the notable companies in the Industrials sector.
GENESIS ENERGY LP (GEL) Stock Rating — Hold (April 2026)
As of April 2026, GENESIS ENERGY LP receives a Hold rating with a composite score of 46.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.GEL ranks #409 out of 4,446 stocks in our coverage universe. Within the Industrials sector, GENESIS ENERGY LP ranks #71 of 752 stocks, placing it in the top 10% of its Industrials 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%).
GEL Stock Price and 52-Week Range
GENESIS ENERGY LP (GEL) currently trades at $17.81. The stock lost $0.14 (0.8%) in the most recent trading session. The 52-week high for GEL is $18.64, which means the stock is currently trading -4.5% from its annual peak. The 52-week low is $11.87, putting the stock 50.0% above its annual trough. Recent trading volume was 124K shares, suggesting relatively thin trading activity.
Is GEL Overvalued or Undervalued? — Valuation Analysis
GENESIS ENERGY LP (GEL) carries a value factor score of 52/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The price-to-book ratio stands at 14.01x, versus the sector average of 2.23x. The price-to-sales ratio is 1.14x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, GEL trades at 23.92x EV/EBITDA, versus 5.70x for the sector.
Overall, GEL'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.
GENESIS ENERGY LP Profitability — ROE, Margins, and Quality Score
GENESIS ENERGY LP (GEL) earns a quality factor score of 47/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -280.8%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -9.0% versus the sector average of 3.3%.
On a margin basis, GENESIS ENERGY LP reports gross margins of 36.0%, compared to 35.8% for the sector. The operating margin is 12.4% (sector: 6.2%). Net profit margin stands at -27.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at -45.3% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
GEL Debt, Balance Sheet, and Financial Health
GENESIS ENERGY LP has a debt-to-equity ratio of 1959.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.98x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $3.05B. Cash and equivalents stand at $5M.
GEL has a beta of 0.72, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for GENESIS ENERGY LP is 76/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
GENESIS ENERGY LP Revenue and Earnings History — Quarterly Trend
In TTM 2026, GENESIS ENERGY LP reported revenue of $1.90B and earnings per share (EPS) of $-4.19. Net income for the quarter was $-437M. Gross margin was 36.0%. Operating income came in at $218M.
In FY 2025, GENESIS ENERGY LP reported revenue of $1.63B and earnings per share (EPS) of $-4.19. Net income for the quarter was $-393M. Revenue grew -45.0% year-over-year compared to FY 2024. Operating income came in at $258M.
In Q3 2025, GENESIS ENERGY LP reported revenue of $414M and earnings per share (EPS) of $-0.05. Net income for the quarter was $23M. Revenue grew -42.0% year-over-year compared to Q3 2024. Operating income came in at $79M.
In Q2 2025, GENESIS ENERGY LP reported revenue of $377M and earnings per share (EPS) of $-0.12. Net income for the quarter was $10M. Revenue grew -50.1% year-over-year compared to Q2 2024. Operating income came in at $68M.
Over the past 8 quarters, GENESIS ENERGY LP has demonstrated a growth trajectory, with revenue expanding from $756M to $1.90B. Investors analyzing GEL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
GEL Dividend Yield and Income Analysis
GENESIS ENERGY LP (GEL) currently pays a dividend yield of 4.0%. At this yield, a $10,000 investment in GEL stock would generate approximately $$395.00 in annual dividend income.
GEL Momentum and Technical Analysis Profile
GENESIS ENERGY LP (GEL) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 39/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 1/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
GEL vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing GEL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GEL vs S&P 500 (SPY) comparison to assess how GENESIS ENERGY LP stacks up against the broader market across all factor dimensions.
GEL Next Earnings Date
No upcoming earnings date has been announced for GENESIS ENERGY LP (GEL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy GEL? — Investment Thesis Summary
GENESIS ENERGY LP presents a balanced picture with arguments on both sides. Low volatility (stability score 76/100) reduces downside risk.
In summary, GENESIS ENERGY LP (GEL) earns a Hold rating with a composite score of 46.5/100 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 GEL stock.
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Institutional Research Dossier
GENESIS ENERGY LP (GEL) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Genesis Energy, L.P. (GEL) receives a Hold rating, reflecting a balanced view of its operational strengths and significant financial challenges. While the company demonstrates strong operational performance in certain segments and trades at a seemingly attractive EV/EBITDA multiple compared to its sector, its negative net income, substantial debt load, and volatile revenue history raise concerns about its long-term financial stability. The current valuation appears to reflect these risks, justifying a neutral stance until clearer signs of sustained profitability and debt reduction emerge.
The company's strategic positioning in the midstream energy sector, particularly its offshore pipeline assets, provides a degree of resilience. However, the recent history of net losses and a high debt-to-equity ratio necessitate a cautious approach. Investors should closely monitor the company's ability to improve its profitability, manage its debt obligations, and navigate the cyclical nature of the energy industry before considering a more bullish outlook.
Business Strategy & Overview
Genesis Energy operates as a midstream energy company, focusing on the transportation, storage, and processing of crude oil, natural gas, and related products. The company's business is segmented into Offshore Pipeline Transportation, Sodium Minerals and Sulfur Services, Onshore Facilities and Transportation, and Marine Transportation. Each segment contributes to the overall revenue stream, with the Offshore Pipeline Transportation segment being a key asset due to its strategic location in the Gulf of Mexico.
The company's strategy involves leveraging its existing infrastructure to provide essential services to producers and refiners. This includes transporting crude oil and natural gas through its pipeline network, providing sulfur extraction services to refineries, and offering storage and transportation solutions for crude oil and refined products. The marine transportation segment further enhances its service offerings by providing waterborne transportation of petroleum and crude oil.
Genesis Energy's strategic positioning in the Gulf Coast region is crucial, as it allows the company to capitalize on the high concentration of refineries and production facilities in the area. The company's onshore facilities and transportation segment plays a vital role in connecting producers to refineries, while its marine transportation segment provides an alternative mode of transportation for petroleum products.
A key aspect of Genesis Energy's strategy is its focus on maintaining and expanding its existing infrastructure. This includes investing in new pipelines, storage facilities, and transportation equipment to meet the growing demand for midstream services. The company also seeks to optimize its operations by improving efficiency and reducing costs.
The company's sodium minerals and sulfur services segment provides a degree of diversification, offering sulfur extraction services to refineries and selling sodium hydrosulfide and caustic soda to industrial companies. This segment helps to mitigate the impact of fluctuations in the crude oil and natural gas markets.
Genesis Energy's business model is predicated on providing essential midstream services to the energy industry. Its strategic positioning, diversified service offerings, and focus on infrastructure development are key components of its overall strategy. However, the company's success depends on its ability to effectively manage its operations, maintain its infrastructure, and adapt to changing market conditions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-45.3%
Sector: 6.4%
-810% VS SCTR
Economic Moat Analysis
Genesis Energy's economic moat is likely narrow, primarily derived from its strategic asset base and established relationships within the midstream energy sector. The company's offshore pipeline network in the Gulf of Mexico represents a significant barrier to entry due to the high capital costs and regulatory hurdles associated with building new pipelines in this region. This infrastructure provides a degree of competitive advantage, allowing Genesis Energy to capture a share of the transportation market.
The company's sodium minerals and sulfur services segment also contributes to its narrow moat. The specialized nature of these services, particularly sulfur extraction for refineries, creates a degree of customer stickiness. Refineries rely on these services to comply with environmental regulations and maintain operational efficiency, making them less likely to switch to alternative providers without a compelling reason.
However, the midstream energy sector is highly competitive, with numerous companies offering similar services. While Genesis Energy's existing infrastructure provides a cost advantage in certain areas, it is not insurmountable. Competitors can invest in new infrastructure or offer lower prices to attract customers, eroding Genesis Energy's market share.
The company's reliance on long-term contracts with producers and refiners provides some stability to its revenue stream, but these contracts are subject to renegotiation and renewal. If Genesis Energy is unable to maintain favorable contract terms, its profitability could be negatively impacted.
Furthermore, the cyclical nature of the energy industry poses a challenge to Genesis Energy's moat. During periods of low oil and gas prices, demand for midstream services may decline, putting pressure on the company's revenue and profitability. This cyclicality limits the company's ability to generate consistent returns and reinforces the narrowness of its moat.
In summary, Genesis Energy possesses a narrow economic moat based on its strategic asset base and specialized service offerings. However, the competitive nature of the midstream energy sector and the cyclicality of the industry limit the strength of its moat. The company's ability to maintain its competitive advantage depends on its ability to efficiently manage its operations, maintain its infrastructure, and adapt to changing market conditions.
Financial Health & Profitability
Genesis Energy's financial health presents a mixed picture. While the company's gross and operating margins are comparable to or exceed the sector averages, its net income and revenue growth figures are concerning. The company reported a significant net loss of $393.24 million for the most recent fiscal year, driven by a substantial revenue decline of 45.3% compared to the sector's 6.6% growth. This suggests potential issues with market share, pricing power, or operational efficiency.
The company's debt-to-equity ratio of 1,959.00 is exceptionally high compared to the sector average of 70.00, indicating a significant reliance on debt financing. This high leverage increases the company's financial risk, making it more vulnerable to economic downturns and interest rate fluctuations. The company's ability to service its debt obligations will be a key factor in its long-term financial stability.
Despite the negative net income, Genesis Energy reported a substantial free cash flow of $1.83 billion. This discrepancy suggests that the company's accounting practices may be masking underlying financial weaknesses. It is crucial to examine the sources of this free cash flow to determine its sustainability and whether it is sufficient to cover the company's debt obligations and capital expenditures.
The company's current ratio of 0.98 indicates a potential liquidity risk, as its current assets are slightly less than its current liabilities. This suggests that the company may face challenges in meeting its short-term obligations. However, the company's access to credit facilities and its ability to generate cash flow from operations could mitigate this risk.
Analyzing the quarterly financial history reveals a volatile revenue trend and inconsistent profitability. While some quarters show positive net income and operating margins, others show significant losses. This volatility makes it difficult to predict the company's future financial performance and increases the uncertainty surrounding its investment prospects.
Overall, Genesis Energy's financial health is a cause for concern. The company's high debt load, negative net income, and volatile revenue history raise questions about its long-term sustainability. While the company's free cash flow and access to credit facilities provide some cushion, investors should closely monitor its financial performance and debt management strategies.
Valuation Assessment
Genesis Energy's valuation presents a complex picture. The company's negative P/E ratio renders this metric useless for valuation purposes. However, its EV/EBITDA multiple of 5.0x is lower than the sector average of 5.7x, suggesting that the company may be undervalued relative to its peers. This lower multiple could reflect the market's concerns about the company's high debt load and negative net income.
The company's free cash flow yield, calculated as free cash flow divided by market capitalization, is exceptionally high. However, as previously mentioned, the sustainability of this free cash flow is questionable, and it may not accurately reflect the company's underlying financial performance. Investors should exercise caution when relying on this metric for valuation purposes.
Given the company's negative net income and high debt load, traditional valuation methods may not be appropriate. A more suitable approach would be to focus on the company's discounted cash flow (DCF) valuation, which takes into account its future cash flow projections and discount rate. However, accurately forecasting the company's future cash flows is challenging due to the volatility of the energy industry and the company's inconsistent financial performance.
The market's current valuation of Genesis Energy likely reflects the risks associated with its high debt load, negative net income, and volatile revenue history. The lower EV/EBITDA multiple suggests that investors are demanding a higher risk premium for investing in the company.
A fair valuation of Genesis Energy would require a thorough analysis of its future cash flow projections, debt management strategies, and the outlook for the energy industry. Investors should also consider the company's potential for operational improvements and cost reductions.
Based on the available data, Genesis Energy's valuation appears to be fair, reflecting the risks and uncertainties surrounding its financial performance. While the company's EV/EBITDA multiple is lower than the sector average, its negative net income and high debt load warrant a cautious approach. Investors should closely monitor the company's financial performance and debt management strategies before considering a more bullish outlook.
Risk & Uncertainty
Genesis Energy faces several significant risks that could negatively impact its financial performance and stock price. The most prominent risk is its high debt load. The company's debt-to-equity ratio is substantially higher than the sector average, making it vulnerable to interest rate increases and economic downturns. A significant portion of its cash flow is dedicated to debt servicing, limiting its ability to invest in growth opportunities or return capital to shareholders.
Another key risk is the cyclical nature of the energy industry. Fluctuations in oil and gas prices can significantly impact the demand for Genesis Energy's midstream services. During periods of low prices, producers may reduce their production, leading to lower volumes transported through the company's pipelines and reduced demand for its storage and processing services. This cyclicality can lead to volatile revenue and earnings, making it difficult to predict the company's future financial performance.
Regulatory risks also pose a threat to Genesis Energy's business. The company's operations are subject to various environmental regulations, and changes in these regulations could increase its compliance costs or restrict its ability to operate in certain areas. Furthermore, regulatory scrutiny of pipeline safety and environmental impact could lead to delays in project approvals or increased operational oversight.
Competition within the midstream energy sector is intense. Numerous companies offer similar services, and Genesis Energy faces the risk of losing market share to competitors that can offer lower prices or better service. The company's ability to maintain its competitive advantage depends on its ability to efficiently manage its operations, maintain its infrastructure, and adapt to changing market conditions.
Finally, the company's reliance on long-term contracts with producers and refiners exposes it to counterparty risk. If a major customer were to default on its obligations, Genesis Energy could experience a significant loss of revenue. The company's ability to mitigate this risk depends on its ability to diversify its customer base and carefully assess the creditworthiness of its counterparties.
Bulls Say / Bears Say
The Bull Case
BULL VIEWGenesis Energy's strategic assets, particularly its offshore pipeline network, provide a stable revenue stream and a competitive advantage in the Gulf of Mexico.
BULL VIEWThe company's focus on operational efficiency and cost reductions will drive improved profitability and free cash flow generation in the long term.
The Bear Case
BEAR VIEWGenesis Energy's high debt load poses a significant risk to its financial stability and limits its ability to invest in future growth.
BEAR VIEWThe company's exposure to the cyclical energy industry makes it vulnerable to fluctuations in oil and gas prices and reduced demand for its services.
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 GEL and 4,400+ other equities.
GENESIS ENERGY LP exhibits a 215% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-9.0%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
36.0%
Sector: 35.8%
Operating Margin
Core business profitability
12.4%
Sector: 6.2%
Net Margin
Bottom-line profitability
-27.2%
Sector: 3.9%
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.
Income Projection audit
A $10,000 investment would generate approximately $395 annually in dividends at the current trailing rate.
