Calumet, Inc. /DE

Diversified specialty-products and renewable-fuels refiner with a Montana Renewables growth story but a near-breakeven loss year and heavy leverage.

Strengths

• Positive free cash flow of $56.6M (60th pct) and growing renewable/SAF volumes
• Revenue resilient (-1.2%, 75th pct) at ~$4.1B scale with positive operating margin 2.6%

Risks

• Net loss (margin -0.8%, 8th pct) and net income down 85%; ROA -1.3% (8th pct)
• High leverage with negative equity (D/E -2.84) and low cash ($125M, 8th pct); current ratio 1.02
• Commodity-margin and RIN/tax-credit volatility, plus refinery operating hazards

Notable findings

• Restatement● Our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that may make it more difficult for a third party to acquire control of us 8-K ↗
• Exec changeRecent 8-K item 5.02 8-K ↗
• Negative equityNegative book equity (debt/equity -2.84)
• Net lossNet loss (net margin -0.8%)
• Customer concentration~10% of revenue from one customer/distributor — 0% and 10
• Strong balance sheetStrong balance sheet — $125M cash & investments