Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Oil, Gas & Consumable Fuels industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Oil, Gas & Consumable Fuels Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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6 Undervalued Oil, Gas & Consumable Fuels Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Oil, Gas & Consumable Fuels industry for Friday, October 04, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Oil, Gas & Consumable Fuels industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Enterprise Products Partners L.P. | EPD | 1.17 | 11.3 | 9.5 | 7.2% | 2.23 | na | B |
| FutureFuel Corp. | FF | 0.74 | 6.3 | 5.1 | 4.2% | 0.81 | na | A |
| Mach Natural Resources LP | MNR | na | na | 4.0 | 18.1% | 1.32 | na | A |
| PrimeEnergy Resources Corporation | PNRG | 1.56 | 8.2 | 2.0 | 5.6% | 1.68 | 96.7 | B |
| Transportadora de Gas del Sur S.A. | TGS | 0.06 | 127.0 | 110.9 | 71.9% | 0.02 | 1.0 | B |
| TORM plc | TRMD | 1.81 | 4.2 | 4.3 | 5.2% | 1.87 | na | A |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
Enterprise Products Partners L.P.’s Value Grade
Value Grade:
| Metric | Score | EPD | Industry Median |
| Price/Sales | 37 | 1.17 | 1.79 |
| Price/Earnings | 26 | 11.3 | 11.5 |
| EV/EBITDA | 36 | 9.5 | 5.8 |
| Shareholder Yield | 9 | 7.2% | 4.5% |
| Price/Book Value | 62 | 2.23 | 1.40 |
| Price/Free Cash Flow | na | na | 15.2 |
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of approximately 250 tractor-trailer tank trucks that are used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation facilities, including propylene fractionation units and propane dehydrogenation facilities, and related marketing activities; butane isomerization complex and related deisobutanizer operations; and octane enhancement, isobutane dehydrogenation, and high purity isobutylene production facilities. It also operates refined products pipelines and terminals; and ethylene export terminals; and provides refined products marketing and marine transportation services. Enterprise Products Partners L.P. was founded in 1968 and is headquartered in Houston, Texas.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Enterprise Products Partners L.P. has a Value Score of 76, which is considered to be undervalued.
When you look at Enterprise Products Partners L.P.’s price-to-sales ratio at 1.17 compared to the industry median at 1.79, this company has a lower price relative to revenue compared to its peers. This could make Enterprise Products Partners L.P.’s stock more attractive for value investors.
Enterprise Products Partners L.P.’s price-earnings ratio is 11.30 compared to the industry median at 11.45. This means it has a lower share price relative to earnings compared to its peers. This could make Enterprise Products Partners L.P. more attractive for value investors.
Now, let’s assess Enterprise Products Partners L.P.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.5, when compared to the industry median of 5.8, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Enterprise Products Partners L.P.’s shareholder yield is higher than its industry median ratio of 4.45%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Enterprise Products Partners L.P.’s price-to-book ratio is higher than its industry median ratio of 1.40. This could make Enterprise Products Partners L.P. less attractive to investors looking for a new addition to their portfolio.
FutureFuel Corp.’s Value Grade
Value Grade:
| Metric | Score | FF | Industry Median |
| Price/Sales | 26 | 0.74 | 1.79 |
| Price/Earnings | 7 | 6.3 | 11.5 |
| EV/EBITDA | 13 | 5.1 | 5.8 |
| Shareholder Yield | 19 | 4.2% | 4.5% |
| Price/Book Value | 25 | 0.81 | 1.40 |
| Price/Free Cash Flow | na | na | 15.2 |
FutureFuel Corp., together with its subsidiaries, manufactures and sells diversified chemical, bio-based fuel, and bio-based specialty chemical products in the United States. The company operates through two segments, Chemicals and Biofuels. The Chemicals segment provides various custom chemicals that are used in the coatings, chemical intermediates, industrial and consumer cleaning, oil and gas, and specialty polymers industries; and performance chemicals, such as polymer modifiers, glycerin products, and various specialty chemicals and solvents. The Biofuels segment is involved in the production and sale of biodiesel and petrodiesel blends; and markets its biodiesel products directly to customers through trucks, barges, and rail cars. FutureFuel Corp. is headquartered in Saint Louis, Missouri.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
FutureFuel Corp. has a Value Score of 97, which is considered to be undervalued.
FutureFuel Corp.’s price-earnings ratio is 6.3 compared to the industry median at 11.5. This means that it has a lower price relative to its earnings compared to its peers. This makes FutureFuel Corp. more attractive for value investors.
FutureFuel Corp.’s price-to-book ratio is higher than its peers. This could make FutureFuel Corp. less attractive for value investors when compared to the industry median at 1.40.
You can read more about FutureFuel Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Mach Natural Resources LP’s Value Grade
Value Grade:
| Metric | Score | MNR | Industry Median |
| Price/Sales | na | na | 1.79 |
| Price/Earnings | na | na | 11.5 |
| EV/EBITDA | 9 | 4.0 | 5.8 |
| Shareholder Yield | 1 | 18.1% | 4.5% |
| Price/Book Value | 44 | 1.32 | 1.40 |
| Price/Free Cash Flow | na | na | 15.2 |
Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Mach Natural Resources LP has a Value Score of 97, which is considered to be undervalued.
Mach Natural Resources LP’s price-to-book ratio is higher than its peers. This could make Mach Natural Resources LP less attractive for value investors when compared to the industry median at 1.40.
You can read more about Mach Natural Resources LP’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
PrimeEnergy Resources Corporation’s Value Grade
Value Grade:
| Metric | Score | PNRG | Industry Median |
| Price/Sales | 44 | 1.56 | 1.79 |
| Price/Earnings | 13 | 8.2 | 11.5 |
| EV/EBITDA | 5 | 2.0 | 5.8 |
| Shareholder Yield | 13 | 5.6% | 4.5% |
| Price/Book Value | 52 | 1.68 | 1.40 |
| Price/Free Cash Flow | 93 | 96.7 | 15.2 |
PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
PrimeEnergy Resources Corporation has a Value Score of 71, which is considered to be undervalued.
PrimeEnergy Resources Corporation’s price-earnings ratio is 8.2 compared to the industry median at 11.5. This means that it has a lower price relative to its earnings compared to its peers. This makes PrimeEnergy Resources Corporation more attractive for value investors.
PrimeEnergy Resources Corporation’s price-to-book ratio is lower than its peers. This could make PrimeEnergy Resources Corporation more attractive for value investors when compared to the industry median at 1.40.
You can read more about PrimeEnergy Resources Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Transportadora de Gas del Sur S.A.’s Value Grade
Value Grade:
| Metric | Score | TGS | Industry Median |
| Price/Sales | 3 | 0.06 | 1.79 |
| Price/Earnings | 95 | 127.0 | 11.5 |
| EV/EBITDA | 98 | 110.9 | 5.8 |
| Shareholder Yield | 0 | 71.9% | 4.5% |
| Price/Book Value | 0 | 0.02 | 1.40 |
| Price/Free Cash Flow | 2 | 1.0 | 15.2 |
Transportadora de Gas del Sur S.A. engages in transportation of natural gas, and production and commercialization of natural gas liquids in Argentina and internationally. The company operates through four segments: Natural Gas Transportation Services; Liquids Production and Commercialization; Midstream; and Telecommunications. The Natural Gas Transportation segment transports natural gas through pipeline system to distribution companies, power plants, and industrial customers. It provides operation and maintenance services for the natural gas transportation facilities. The Liquids Production and Commercialization segment produces and commercializes natural gas liquids, such as ethane, liquid petroleum gas, natural gasoline, propane, and butane. This segment offers certain related services comprising reception, storage, and dispatch of the liquids. The Midstream segment provides natural gas conditioning services; treatment, removal of impurities and natural gas compression, including the collection and transport of natural gas; and inspection and maintenance of pipelines and compressor plants services. In addition, this segment offers steam generation for electricity production and management services for expansion works and steam generation for the production of electricity. The Telecommunications segment offers data transmission services through a network of digital terrestrial radio relay. It serves residential, commercial, industrial, and electric power generation end users. The company was incorporated in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Transportadora de Gas del Sur S.A. has a Value Score of 79, which is considered to be undervalued.
Transportadora de Gas del Sur S.A.’s price-earnings ratio is 127.0 compared to the industry median at 11.5. This means that it has a higher price relative to its earnings compared to its peers. This makes Transportadora de Gas del Sur S.A. less attractive for value investors.
Transportadora de Gas del Sur S.A.’s price-to-book ratio is higher than its peers. This could make Transportadora de Gas del Sur S.A. less attractive for value investors when compared to the industry median at 1.40.
You can read more about Transportadora de Gas del Sur S.A.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
TORM plc’s Value Grade
Value Grade:
| Metric | Score | TRMD | Industry Median |
| Price/Sales | 49 | 1.81 | 1.79 |
| Price/Earnings | 3 | 4.2 | 11.5 |
| EV/EBITDA | 10 | 4.3 | 5.8 |
| Shareholder Yield | 15 | 5.2% | 4.5% |
| Price/Book Value | 56 | 1.87 | 1.40 |
| Price/Free Cash Flow | na | na | 15.2 |
TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
TORM plc has a Value Score of 89, which is considered to be undervalued.
TORM plc’s price-earnings ratio is 4.2 compared to the industry median at 11.5. This means that it has a lower price relative to its earnings compared to its peers. This makes TORM plc more attractive for value investors.
TORM plc’s price-to-book ratio is lower than its peers. This could make TORM plc more attractive for value investors when compared to the industry median at 1.40.
You can read more about TORM plc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Oil, Gas & Consumable Fuels Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Oil, Gas & Consumable Fuels stocks as well as other industrys.
Choosing Which of the 6 Best Oil, Gas & Consumable Fuels Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- Enterprise Products Partners L.P. stock has a Value Grade of B.
- FutureFuel Corp. stock has a Value Grade of A.
- Mach Natural Resources LP stock has a Value Grade of A.
- PrimeEnergy Resources Corporation stock has a Value Grade of B.
- Transportadora de Gas del Sur S.A. stock has a Value Grade of B.
- TORM plc stock has a Value Grade of A.
Now that you have a bit more background about each of the 6 undervalued stocks in the Oil, Gas & Consumable Fuels industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Oil, Gas & Consumable Fuels Stocks
Want to learn more about Oil, Gas & Consumable Fuels stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
- 6 Undervalued Oil, Gas & Consumable Fuels Stocks for Friday, October 04
- 4 Undervalued Oil, Gas & Consumable Fuels Stocks for Thursday, October 03
- 3 Undervalued Oil & Gas - Refining and Marketing Stocks for Tuesday, October 01
- 4 Undervalued Oil & Gas - Transportation Services Stocks for Tuesday, October 01
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