October 03, 2025 [Gurufocus]- PBF Energy (PBF) has successfully completed the sale of two terminal facilities, a deal initially agreed upon at the end of April and disclosed to the public on May 1. The assets, transferred through PBF Logistics, are located in Philadelphia, Pennsylvania, and Knoxville, Tennessee. The sale was finalized for a total cash consideration of $175 million.

The transaction includes 38 storage tanks that offer around 1.9 million barrels of storage capacity, along with the associated truck racks. The completion of this sale was officially recorded on September 30. Barclays was the sole financial advisor to PBF for this transaction.

PBF Energy Inc is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products in the United States. The company owns refineries in Delaware, Ohio, New Jersey, California, and Louisiana. The Company operates in two reportable business segments: Refining and Logistics. The Company’s oil refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products and are aggregated into the Refining segment. PBFX operates logistics assets such as crude oil and refined products terminals, pipelines and storage facilities. The Logistics segment consists solely of PBFX’s operations.

With a market capitalization of approximately $3.49 billion, PBF Energy is positioned within the energy sector, specifically in the oil and gas industry. The company is currently trading on the NYSE, reflecting its significant presence in the market.

Financial Health Analysis

PBF Energy’s financial performance has been challenging, as evidenced by several key metrics:

• Revenue for the trailing twelve months stands at $30.28 billion, with a 3-year revenue growth rate of 8.4%.
• Profitability metrics are concerning, with a negative operating margin of -4.53% and a net margin of -3.24%.
• The return on equity (ROE) is -17.61%, indicating inefficiencies in generating returns from shareholders’ equity.

On the balance sheet front, PBF Energy’s liquidity ratios suggest moderate financial health:

• The current ratio is 1.31, indicating a reasonable ability to cover short-term liabilities.
• The debt-to-equity ratio is 0.63, reflecting a balanced approach to leveraging.

However, warning signs are present:

• The Altman Z-Score of 2.73 places the company in the grey area, suggesting potential financial stress.
• Insider activity shows two insider selling transactions in the past three months, with no insider buying, which could indicate a lack of confidence in the stock’s short-term prospects.

Valuation & Market Sentiment

PBF Energy’s valuation metrics provide insight into its current market standing:

• The P/S ratio is 0.12, close to its 1-year high, suggesting the stock may be fairly valued relative to its sales.
• The P/B ratio is 0.69, also near its 1-year high, indicating potential overvaluation compared to its book value.

Analyst sentiment is mixed, with a recommendation score of 3.4, suggesting a hold position. Technical indicators such as the RSI of 58.06 indicate that the stock is neither overbought nor oversold.

Institutional ownership is high at 83.87%, reflecting strong interest from large investors, while insider ownership is relatively low at 2.57%.

Risk Assessment

PBF Energy faces several risks, both financial and sector-specific:

• The company’s Beneish M-Score of -3.99 suggests it is unlikely to be a manipulator, which is a positive sign for financial integrity.
• Sector-specific risks include volatility in oil prices and regulatory changes impacting the oil and gas industry.
• The stock’s beta of 0.79 indicates lower volatility compared to the market, which may appeal to risk-averse investors.

Overall, while PBF Energy’s recent asset sale provides a liquidity boost, the company faces significant challenges in improving its profitability and financial health. Investors should consider these factors alongside market conditions and sector dynamics when evaluating the stock.