ICAHN ENTERPRISES L.P. (IEP) Stock Analysis
ICAHN ENTERPRISES L.P. (IEP) Stock Analysis
Overall Grade: F (Concerning)
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ICAHN ENTERPRISES L.P. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -9.6% | Below expectations |
| FCF Margin | -0.0% | Cash flow pressure |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is ICAHN ENTERPRISES L.P.'s Profitability and ROIC?
ICAHN ENTERPRISES L.P.'s return on invested capital of -9.6% is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -9.6% | Red flag | Below cost of capital |
| Operating Margin | -5.2% | Warning | Moderate operational efficiency |
How Strong is ICAHN ENTERPRISES L.P.'s Cash Flow Quality?
ICAHN ENTERPRISES L.P. generated $-2.0M in free cash flow over the trailing twelve months, representing a -0.0% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -0.0% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-2.0M | Red flag | Cash burn |
| OCF/Net Income | -0.9x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is ICAHN ENTERPRISES L.P.'s Financial Health?
Is ICAHN ENTERPRISES L.P. Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | -0.5x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -9.6% | Bottom 10% | -1.3x below |
| Free Cash Flow Margin | -0.0% | Bottom 10% | -0.0x below |
| Operating Margin | -5.2% | Bottom 10% | -0.5x below |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -9.6% (Red flag)
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -0.0% (Red flag)
Frequently Asked Questions
Q: What is ICAHN ENTERPRISES L.P.'s Return on Invested Capital (ROIC)?
ICAHN ENTERPRISES L.P. (IEP) has a trailing twelve-month Return on Invested Capital (ROIC) of -9.6%. This compares below the sector median of 7.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is ICAHN ENTERPRISES L.P.'s Free Cash Flow Margin?
ICAHN ENTERPRISES L.P. (IEP) has a free cash flow margin of -0.0%, generating $-2.0 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is ICAHN ENTERPRISES L.P. stock overvalued or undervalued?
ICAHN ENTERPRISES L.P. (IEP) The EV/Sales multiple is -0.5x.
Q: What is ICAHN ENTERPRISES L.P.'s revenue and earnings growth?
ICAHN ENTERPRISES L.P. (IEP) declined revenue by 6.3% year-over-year. Net income grew by 18.1% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does ICAHN ENTERPRISES L.P. compare to competitors in Energy?
Compared to other companies in Energy, ICAHN ENTERPRISES L.P. (IEP) shows: ROIC of -9.6% is below the sector median of 7.2% (-1.3x median). FCF margin of -0.0% trails the sector median of 7.7%. These rankings are based on MetricDuck's analysis of all Energy companies with available SEC filings.
Q: What warning signs should I watch for with ICAHN ENTERPRISES L.P.?
Investors in ICAHN ENTERPRISES L.P. (IEP) should monitor these potential warning signs: 1) FCF margin is thin at -0.0%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.