Summary
Balancing Decline And Potential: Why FutureFuel Remains A Hold
FutureFuel Corp's Q1 2025 saw a sharp revenue and profit decline due to weak biodiesel demand, regulatory uncertainty, and rising costs. The company is shifting focus to its chemical segment, pausing biodiesel production until regulatory clarity and feedstock price stability return. My fair value estimate suggests shares are trading near intrinsic value, with a 6% dividend yield providing some downside support.
FutureFuel: Recent Operating Challenges Create Potential Buying Opportunity
FutureFuel Corp. has seen a 28% stock price decline since January, largely due to market tensions and a rough Q4. Despite the decline, FF's high cash balance relative to market cap presents a buying opportunity for risk-tolerant value investors. Its enterprise value has dropped by half during this time. FF's diversified revenue streams and stronger balance sheet set it apart from peers in the biofuel industry.
FutureFuel: Fair Company At A Wonderful Price
FutureFuel operates in a difficult, highly competitive industry. The company's strong balance sheet and large cash position limits downside risks for investors. FutureFuel has a long-term track-record of free-cash flow generation.
FutureFuel Corp (FF) FAQ
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FutureFuel Corp Profile
| Chemicals Industry | Materials Sector | Roeland H. Polet CEO | NYSE Exchange | 36116M106 CUSIP |
| US Country | 537 Employees | 4 Dec 2025 Last Dividend | - Last Split | 9 May 1986 IPO Date |
Overview
FutureFuel Corp., with its subsidiaries, engages in the manufacture and sale of a diversified portfolio of chemical, bio-based fuel, and bio-based specialty chemical products primarily in the United States. Operating through two main segments, Chemicals and Biofuels, the company serves a wide range of industries including coatings, industrial and consumer cleaning, oil and gas, and specialty polymers. Headquartered in Saint Louis, Missouri, FutureFuel Corp. aims to leverage its expertise in both chemical and biofuels production to deliver high-quality products that meet the evolving needs of its customers.
Products and Services
FutureFuel Corp. offers a broad spectrum of products and services across its Chemicals and Biofuels segments:
- Custom Chemicals: Tailored chemical solutions provided for the coatings, chemical intermediates, industrial and consumer cleaning, oil and gas, and specialty polymers industries. These products are designed to meet specific customer requirements, offering flexibility and efficiency in application.
- Performance Chemicals: Includes polymer modifiers, glycerin products, and various specialty chemicals and solvents. These products offer enhanced capabilities and performance in a variety of applications, supporting customers in achieving desired results.
- Biodiesel: The Biofuels segment focuses on the production and sale of biodiesel and petrodiesel blends. As an alternative to traditional fossil fuels, biodiesel represents a renewable energy source that contributes to reduced environmental impact.
- Biodiesel Marketing: Direct marketing of biodiesel products to customers through trucks, barges, and rail cars. This approach enables FutureFuel Corp. to efficiently reach a wide market base, ensuring that clients have reliable access to biofuels.
Contact Information
