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PAR Pacific Holdings (PARR): analysis traps
Where its figures could mislead a reader, and what to check before taking them at face value · Data: Q3 2026, to Sep 30, 2026, filed Nov 4, 2026; rules v1.1
PAR Pacific Holdings (PARR): 1 rule of 10 triggered on the filings to Sep 30, 2026: low P/E at a cyclical peak = undervalued. 1 to review; 1 with insufficient data; 2 not applicable. Each is a question to verify, with the normal explanation that would produce the same figures.
Check these first
Low P/E at a cyclical peak = undervalued Triggered · severity high · confidence medium
The shares trade at 3.6× this year's net income of $948M, but that profit is at a high: the median of the last eight fiscal years is $41M, on which the same market value is 83.0×. A low multiple of peak profit is not a low multiple of normal profit.
Innocent reading: The business has changed for good (a merger, a new line, a pricing regime) and the old years are not its normal.
A precise DCF value = the true value To review · confidence high
The DCF's point value is 862.90 a share (price 68.21); 85% of it is the terminal value, a number about years no one has seen. Moving wacc by ±1 pt alone takes it from 691.42 to 1,141.84; across every method the research ran the range is -957 to 3,911. The value is a range; the decimals are not information.
Innocent reading: A stable, mature business with a narrow range of outcomes, where the point value is a fair summary.
Every rule
A01 FCF growth = the business improved Not triggered confidence medium
Free cash flow rose $348M to $296M; working capital and lower capex explain 1% of it, so most of the gain is in operating cash flow itself.
The figures and how they are read
| Fiscal year before | FY2024 |
| Fiscal year | FY2025 |
| Operating cash flow, year before | $84M |
| Operating cash flow | $445M |
| Capex, year before | $136M |
| Capex | $149M |
| Free cash flow, year before | −$52M |
| Free cash flow | $296M |
| Change in FCF | $348M |
| Change in capex | $13M |
| Working capital: change in its cash contribution | $3M |
| Of which: capex cut | 0.00 |
| Of which: working capital released | $3M |
| Share of the increase that need not repeat | +0.9% |
| Operating cash flow before working capital: change | 358339000.00 |
FCF = operating cash flow − cash capex; ΔFCF = ΔOCF − ΔCapEx; the working-capital part is the change in the cash-bridge items (receivables, inventory, payables, accruals), with the sign of the cash flow statement
Source: FY2025 (cash flow statement, fiscal year) · FY2024 (cash flow statement, fiscal year before)
A07 Stock compensation added back = no economic cost Not triggered confidence high
Stock compensation is 0.2% of revenue: small enough that adding it back changes little.
The figures and how they are read
| Fiscal year | FY2025 |
| Stock compensation | $17M |
| Revenue | $7.5B |
| SBC / revenue | +0.2% |
| Buybacks | $125M |
| Buybacks / SBC | 7.5 |
| Diluted shares, year before | 56.8M shares |
| Diluted shares | 51.6M shares |
| Diluted shares: change | -9.1% |
SBC / revenue from the cash flow statement's add-back; the diluted weighted share count year over year; buybacks from the financing section
Source: FY2025 (stock compensation, buybacks and the diluted share count, fiscal year)
B02 Receivables growing = future cash is certain Not triggered confidence medium
Receivables grew 75% against revenue 52% in Q3 2026; DSO 17 against a median of 19: collections are keeping pace with sales.
The figures and how they are read
| Quarter | Q3 2026 |
| Revenue, year over year | +51.6% |
| Receivables, year over year | +75.0% |
| Quarter before | Q2 2026 |
| Revenue y/y, quarter before | +56.8% |
| Receivables y/y, quarter before | +33.1% |
| Days sales outstanding | 17.0 |
| DSO, median of eight quarters | 18.5 |
| Receivables | $611M |
| Revenue | $3.1B |
receivables and revenue against the same quarter a year earlier; DSO = receivables / quarterly revenue × days, against the median of the eight quarters before
Source: Q3 2026 (receivables and revenue) · Q3 2025 (the same quarter a year earlier)
B08 Adjusted profit = economic profit Insufficient data
no reconciliation table read from the releases yet and fewer than three quarters with both an adjusted and a GAAP EPS
C02 Low net debt = no refinancing risk Not triggered confidence medium
$8M comes due within a year, 233.2× covered by cash and investments of $731M plus $1.0B of free cash flow.
The figures and how they are read
| Cash and investments | $731M |
| Debt | $496M |
| Net debt | −$235M |
| Due within a year | $8M |
| Read from | the debt maturity table |
| Free cash flow, twelve months | $1.0B |
| Cash plus free cash flow | $1.8B |
| Coverage of what is due | 233.2 |
| Due in the second year | $8M |
| Balance sheet date | 2026-09-30 |
due within a year from the maturity table (else the current portion of debt), against cash and investments plus free cash flow over the last twelve months (zero if negative); no credit lines assumed
Source: FY2025 (debt maturities, cash and investments)
D03 EPS growth = profit growth Not triggered confidence high
EPS rose 38% and net income rose 35% in Q3 2026; the share count fell 2.4%: EPS growth follows profit growth.
The figures and how they are read
| Quarter | Q3 2026 |
| Quarter before | Q3 2025 |
| EPS, year before | $5.16 |
| EPS | $7.11 |
| Net income, year before | $263M |
| Net income | $353M |
| Diluted shares, year before | 50.9M shares |
| Diluted shares | 49.7M shares |
| EPS growth | +37.9% |
| Net income growth | +34.5% |
| Diluted shares: change | -2.4% |
| eps from profit | $1.78 |
| eps from share count | $0.17 |
EPS and net income against the same quarter a year earlier; the EPS bridge attributes the change to profit first, then to the share count (the order is fixed and disclosed)
Source: Q3 2026 (net income, diluted shares, EPS) · Q3 2025 (the same quarter a year earlier)
E02 Low P/E at a cyclical peak = undervalued Triggered severity high · confidence medium
The shares trade at 3.6× this year's net income of $948M, but that profit is at a high: the median of the last eight fiscal years is $41M, on which the same market value is 83.0×. A low multiple of peak profit is not a low multiple of normal profit.
The figures and how they are read
| market value | $3.4B |
| net income ttm | $948M |
| pe ttm | 3.60 |
| net income median fy | $41M |
| pe mid cycle | 83.00 |
| net income peak fy | $729M |
| years | FY2018 / 39.0; FY2019 / 41.0; FY2020 / -409.0; FY2021 / -81.0; FY2022 / 364.0; FY2023 / 729.0; FY2024 / -33.0; FY2025 / 369.0 |
| down years in window | 2 |
P/E on the trailing twelve months' net income against the P/E on the median net income of the last eight fiscal years (a mid-cycle stand-in); 'at a peak' = this year's profit at or above 90% of the best year and at least 1.3× the median
Source: Q3 2026 (net income, trailing twelve months)
What would explain it innocently
- The business has changed for good (a merger, a new line, a pricing regime) and the old years are not its normal
- The market is right that profit will fall, and the price already says so
- Capacity has left the industry, so the cycle's trough is higher than before
What to look for in the filing
- Where the industry's prices and volumes stand against their own history
- Capacity on order across the industry
- Management's view of the cycle in the MD&A
What would show the trap does not apply
- Profit holds at this level through the next two years (the eight-year peak was a new base, not a top)
- The industry's capacity and prices stay where they are rather than reverting
Look again: next filing.
E07 A precise DCF value = the true value To review confidence high
The DCF's point value is 862.90 a share (price 68.21); 85% of it is the terminal value, a number about years no one has seen. Moving wacc by ±1 pt alone takes it from 691.42 to 1,141.84; across every method the research ran the range is -957 to 3,911. The value is a range; the decimals are not information.
The figures and how they are read
| dcf value | 862.90 |
| price | 68.21 |
| terminal value share | +85.4% |
| swing by input | WACC / ±1 pt / 691.42 / 1141.84; Operating margin / ±3 pts / 662.42 / 1063.38; Revenue growth (each year) / ±5 pts / 709.26 / 1043.86; Terminal growth / ±0.5 pt / 793.68 / 950.68 |
| range all methods | -957.45; 3911.44 |
the DCF's point value against the share of it that is the terminal value and the value at each input moved by one step (growth ±5 pts, WACC ±1 pt, margin ±3 pts …); the range across every method the research ran
Source: 2026-11-08 (valuation research)
What would explain it innocently
- A stable, mature business with a narrow range of outcomes, where the point value is a fair summary
- The inputs that matter most are themselves well known (a regulated return, a long contract)
What to look for in the filing
- Which input you believe differs from the research's and why
- What the price implies for growth (the reverse DCF on the fair-value page)
What would show the trap does not apply
- The DCF's value is robust to the terminal growth and discount rate (the range's low end is still above the price)
- The company's cash flows over the next three years track the DCF's early years
Look again: next filing.
J06 A bank's low P/E and high profit = safe Not applicable
not a bank
J08 A REIT's low net income = the dividend is unsafe Not applicable
not a REIT
What the statuses mean
Triggered: the filings show the pattern; read the normal explanations and the missing evidence before concluding anything. To review: one quarter or a weak signal; a reader's judgement, not a pattern. Not triggered: the pattern is absent on these figures. Insufficient data: the filings read so far do not hold what the rule needs; this is not a clean bill. Not applicable: the rule is not meant for this kind of company (a bank's working capital, a loss-making quarter's EPS growth). Out of date: the latest filing is more than fifteen months old.
Severity is what the pattern could mean for cash, value or solvency; confidence is how reliable the inputs and the reading are. The two are kept apart.
Record a view
A reader's judgement, grounds, what would change it and the next review; kept in the browser (needs JavaScript).
Every rule and the companies it triggers on → PAR Pacific Holdings: cash flow →
Each rule reads the company's own filings by a fixed formula and says what would explain the same figures innocently. A triggered rule is a question to verify, not a finding of manipulation, and not a view on the stock. Missing data is shown as missing, never as clear. Not investment advice.