Delek US Holdings Is Intriguing, But Not Compelling

On a standalone basis, Delek US Holdings, Inc. trades at an exceptionally low EV/EBITDA multiple of 1.6x based solely on Q3 results. DK management sees a share price over $100 per share in an SOTP model; that might be aggressive, but paper upside does seem reasonable. Even with spreads collapsing at the moment, the long-term case for refinery margins seems strong, adding another potential catalyst for DK stock.