The Tesoro Corp. oil refinery in Nikiski, Alaska.The Associated Press
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San Antonio-based independent refiner and marketer of petroleum products Tesoro Corp. operates six refineries in the western United States with a combined capacity of over 850,000 barrels per day. Tesoro's retail-marketing system includes over 2,200 retail stations under the ARCO, Shell, Exxon, Mobil, USA Gasoline, and Tesoro brands. It has a market cap of $14-billion (U.S.).
Tesoro trades for just 8.9 times TTM EPS, which the John Neff-based model likes.
It has grown earnings at a 33-per-cent pace over the long term (using an average of the 3- and 4-year EPS growth rates), which the Peter Lynch based model likes. The Lynch model also likes its 0.27 PE-to-growth ratio.
The company has 0.46 price/sales ratio, which the Kenneth Fisher-based model likes.
It has a 19.8-per-cent earnings yield (EBIT/enterprise value), impressing the Joel Greenblatt-based model.
The David Dreman-based contrarian model likes that its P/E and price/cash flow ratios are both in the market's cheapest 20 per cent. The Dreman model also likes its 33.3% ret. on equity and 1.6 current ratio.
Tesoro has a 91 relative strength (12-month), allowing it to rate highly on the Momentum Investor strategy.
John Reese is long TSO.
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