GEL Stock Analysis

Genesis Energy LP
ENERGY OIL & GAS MIDSTREAM

Back to Winners View Yahoo Finance Chart Buy on the Dip

Strong Caution Mixed Weak Unavailable

StockValueFinder Grade

44.26 / 100

Weak

Confidence: Very High (96.0%) Coverage: 96.0%

Business Quality 42.2

Financial Strength 21.9

Earnings & Growth 75.1

Valuation 43.4

Market Strength 37.7

The grade combines Business Quality, Financial Strength, Earnings & Growth, Valuation, and Market Strength. Rating and Trend remain separate signals.

Rating AVOID

Avoid

The screening rules are warning against this setup.

Rating is the simple decision label from the screening rules.

Trend SELL / AVOID TREND

Weak Trend

The current trend is unfavorable.

Trend shows whether price action is helping or hurting the setup.

P/E Ratio 71.20

High Expectations

Very high P/E requires strong future results to justify the price.

P/E shows how much investors pay for each dollar of earnings.

ROIC -0.25%

Poor

Negative ROIC suggests capital is not being used profitably.

ROIC measures how efficiently capital turns into profit.

Debt Payback 40.75 yrs

Weak

A long payback period can raise financial-risk concerns.

Debt payback estimates how quickly debt could be covered.

Interest Coverage 0.98x

Weak

Low coverage can make debt more risky.

Interest coverage shows how easily earnings cover interest costs.

Price $14.24

Market Price

Price alone is not a buy or sell signal.

Price should be judged with valuation, quality, and trend.

Last updated: 2026-10-19 07:34:51

Performance Overview

Trailing adjusted-close returns as of 2026-07-09. Benchmark is SPY.

YTD Return

GEL -2.26%

SPY +10.82%

1-Year Return

GEL -10.85%

SPY +21.79%

3-Year Return

GEL +78.30%

SPY +77.92%

5-Year Return

GEL +70.72%

SPY +84.71%

Returns are calculated from adjusted close prices and may differ from broker or research-site totals depending on data source, dividend handling, benchmark choice, and latest available trading date.

Legacy Screening Checks

This page uses cached SQL data from the latest StockValueFinder scan, so it loads fast without hitting Alpha Vantage on every page view.

EPS Strength

FAIL

Looks for positive and improving earnings per share.

ROIC 10%+

FAIL

Looks for strong return on invested capital.

Interest Coverage 6+

FAIL

Checks whether operating income comfortably covers interest expense.

Debt Payback ≤ 3 Years

FAIL

Checks whether free cash flow could pay down long-term debt quickly.

P/E 15 or Less

FAIL

Checks whether valuation is reasonable under the current rule set.

Moving Average Trend

SELL / AVOID TREND

Uses 20-day, 50-day, and 200-day moving averages for entry timing context.

A high StockValueFinder score is a research signal, not a guarantee. Strong companies can still fall during recessions, sector downturns, valuation resets, or company-specific events. Always review the business, risks, SEC filings, valuation, and your personal investment goals before buying.

Cached Technical Data

Moving average values from the latest stored scan.

20-Day MA14.24

50-Day MA15.20

200-Day MA16.06

MA Score0

Latest Published Stock Research

Research generated: October 21, 2026

GEL Stock Analysis: Why Genesis Energy LP Scored 0% in Stock Value Finder

Genesis Energy LP (GEL): A Detailed Educational Stock Research Review

Overview of Genesis Energy LP (GEL)

Genesis Energy LP (GEL) is a master limited partnership (MLP) operating in the energy sector, specifically within the oil and gas midstream industry. Midstream companies typically focus on the transportation, storage, and processing of oil, natural gas, and natural gas liquids (NGLs). These businesses often generate revenue through fee-based contracts, which can provide some stability compared to upstream exploration and production companies that are more directly exposed to commodity price fluctuations.

This article is an educational review from StockValueFinder.com, designed to help investors understand how to evaluate stocks using specific financial metrics. We will examine Genesis Energy LP through the lens of StockValueFinder’s quantitative screening system, which assigns a score of 0% and an "AVOID" rating to GEL based on the supplied data. Our goal is to explain each metric, what it measures, why it matters, and how Genesis Energy LP performs against these benchmarks.

Why the StockValueFinder Score Matters

StockValueFinder uses a disciplined, rules-based approach to evaluate stocks across multiple financial dimensions. The overall score of 0% for Genesis Energy LP indicates that the company did not meet the minimum thresholds for any of the core financial tests in the system. This score is not a prediction of future performance but rather a reflection of the company’s current financial health and valuation relative to StockValueFinder’s criteria.

A score of 0% suggests that Genesis Energy LP exhibits several financial weaknesses, including poor profitability, high debt levels, and an unattractive valuation. While no single metric should determine an investment decision, a low score across multiple categories can signal elevated risk. In the following sections, we will break down each metric to explain why Genesis Energy LP failed these tests and what investors should look for when evaluating other stocks.

EPS Strength and Consistency

What EPS Measures

Earnings per share (EPS) is a fundamental measure of a company’s profitability. It represents the portion of a company’s profit allocated to each outstanding share of common stock. Consistent and growing EPS over time is often a sign of a healthy, well-managed business. Conversely, erratic or declining EPS can indicate operational challenges, competitive pressures, or financial instability.

Why EPS Consistency Matters

StockValueFinder places a strong emphasis on EPS consistency because it reflects a company’s ability to generate stable profits. Companies with volatile EPS may struggle to maintain dividends, reinvest in growth, or weather economic downturns. For example, a company with EPS of $1.00, $1.20, and $1.15 over three consecutive years demonstrates more stability than one with EPS of $0.50, $2.00, and -$0.25 over the same period.

StockValueFinder’s EPS Test

StockValueFinder’s system evaluates EPS consistency over multiple years. While the exact EPS values for Genesis Energy LP are not supplied, the system recorded a result of "Did not pass" for this test. This indicates that Genesis Energy LP’s EPS history did not meet the minimum standards for consistency or growth required by the screening criteria.

What Investors Should Look For

When evaluating other stocks, investors should look for

**Consistent EPS growth**: A company with steadily increasing EPS (e.g., 5-10% annual growth) is often more attractive than one with erratic earnings. - **Positive EPS**: Negative EPS can signal losses, which may not be sustainable over the long term. - **Low volatility**: Companies with stable EPS are generally less risky than those with wild swings in profitability.

For Genesis Energy LP, the failure of the EPS test suggests that the company’s earnings history may be inconsistent or declining, which could pose risks for investors seeking stable returns.

ROIC and Capital Efficiency

What ROIC Measures

Return on invested capital (ROIC) measures how effectively a company uses its capital to generate profits. It is calculated as:

**ROIC = Net Operating Profit After Taxes (NOPAT) / Invested Capital**

ROIC is a critical metric because it reveals whether a company is generating sufficient returns to justify the capital invested in its operations. A high ROIC indicates that a company is efficiently deploying capital, while a low or negative ROIC suggests inefficiency or poor capital allocation.

Why ROIC Matters

StockValueFinder generally prefers companies with an ROIC of **10% or higher**. This threshold is based on the idea that a company should generate returns that exceed its cost of capital to create value for shareholders. For example: - A company with an ROIC of 15% is typically using capital more effectively than one with an ROIC of 4%. - A negative ROIC, such as -0.25%, indicates that the company is not generating enough profit to cover its cost of capital, which is a red flag for investors.

Genesis Energy LP’s ROIC

Genesis Energy LP’s ROIC is **-0.25%**, which is well below StockValueFinder’s preferred threshold of 10%. This negative ROIC suggests that the company is not generating sufficient returns on its invested capital, which could be due to operational inefficiencies, high costs, or weak pricing power in its markets.

What Investors Should Look For

When evaluating other stocks, investors should consider

**ROIC above 10%**: This is generally a sign of a high-quality business with a competitive advantage. - **Consistent ROIC**: Companies that maintain a high ROIC over time are often more resilient and better positioned for long-term growth. - **Comparison to peers**: A company’s ROIC should be compared to others in the same industry to assess relative performance.

Genesis Energy LP’s ROIC of -0.25% is a significant weakness, as it indicates that the company is not generating adequate returns on its capital investments.

Interest Coverage and Financial Safety

What Interest Coverage Measures

Interest coverage is a financial ratio that measures a company’s ability to pay the interest on its outstanding debt. It is calculated as:

**Interest Coverage = Earnings Before Interest and Taxes (EBIT) / Interest Expense**

A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations, while a lower ratio suggests financial strain.

Why Interest Coverage Matters

StockValueFinder prefers an interest coverage ratio of **6 or higher**. This threshold is based on the idea that a company should generate enough earnings to comfortably cover its interest payments. For example: - A company with an interest coverage ratio of 8x is in a stronger financial position than one with a ratio of 2x. - A ratio below 1x indicates that the company is not generating enough earnings to cover its interest expenses, which is a sign of financial distress.

Genesis Energy LP’s Interest Coverage

The system recorded a result of "Did not pass" for Genesis Energy LP’s interest coverage test. While the exact interest coverage ratio is not supplied, this result suggests that the company’s ability to cover its interest expenses is weak. This could be due to high debt levels, low profitability, or a combination of both.

What Investors Should Look For

When evaluating other stocks, investors should consider

**Interest coverage of 6x or higher**: This is generally a sign of financial health and low risk of default. - **Stable or improving coverage**: Companies with consistent or growing interest coverage ratios are often more attractive. - **Comparison to peers**: Interest coverage should be evaluated in the context of the company’s industry, as some sectors (e.g., utilities) typically carry more debt than others.

Genesis Energy LP’s failure of the interest coverage test is a red flag, as it suggests that the company may be struggling to meet its debt obligations.

Debt Payback and Balance Sheet Discipline

What Debt Payback Measures

Debt payback is a metric that estimates how many years it would take a company to pay off its total debt using its current operating cash flow. It is calculated as:

**Debt Payback Years = Total Debt / Operating Cash Flow**

A shorter debt payback period indicates that a company is generating sufficient cash flow to quickly reduce its debt burden, while a longer period suggests higher financial risk.

Why Debt Payback Matters

StockValueFinder prefers a debt payback period of **3 years or less**. This threshold is based on the idea that companies should be able to pay off their debt relatively quickly to avoid financial strain. For example: - A company with a debt payback period of 1.5 years is in a stronger financial position than one with a period of 7 years. - A debt payback period of 10+ years indicates that the company may struggle to reduce its debt burden, especially during economic downturns.

Genesis Energy LP’s Debt Payback

Genesis Energy LP’s debt payback period is **40.75 years**, which is significantly higher than StockValueFinder’s preferred threshold of 3 years. This extremely long debt payback period suggests that the company’s operating cash flow is insufficient to cover its debt obligations in a reasonable timeframe. This is a major red flag, as it indicates that Genesis Energy LP may be overleveraged and at risk of financial distress.

What Investors Should Look For

When evaluating other stocks, investors should consider

**Debt payback of 3 years or less**: This is generally a sign of a strong balance sheet and low financial risk. - **Stable or improving cash flow**: Companies with growing operating cash flow are better positioned to pay down debt. - **Comparison to peers**: Debt payback should be evaluated in the context of the company’s industry, as some sectors (e.g., capital-intensive industries) typically carry more debt than others.

Genesis Energy LP’s debt payback period of 40.75 years is a significant weakness, as it suggests that the company’s debt levels are unsustainable relative to its cash flow.

P/E Ratio and Valuation Discipline

What P/E Ratio Measures

The price-to-earnings (P/E) ratio is a valuation metric that compares a company’s stock price to its earnings per share. It is calculated as:

**P/E Ratio = Stock Price / Earnings Per Share (EPS)**

A lower P/E ratio generally indicates that a stock is undervalued relative to its earnings, while a higher P/E ratio suggests that the stock may be overvalued.

Why P/E Ratio Matters

StockValueFinder prefers a P/E ratio of **15 or lower** for valuation discipline. This threshold is based on the idea that investors should seek stocks trading at reasonable valuations relative to their earnings. For example: - A stock with a P/E ratio of 8 may be more attractively valued than one with a P/E ratio of 40, assuming the underlying business quality is sound. - A very high P/E ratio (e.g., 50+) may indicate that the stock is overpriced relative to its earnings, which could limit future returns.

Genesis Energy LP’s P/E Ratio

Genesis Energy LP’s P/E ratio is **71.20**, which is significantly higher than StockValueFinder’s preferred threshold of 15. This extremely high P/E ratio suggests that the stock is trading at a substantial premium to its earnings, which may not be justified by the company’s financial performance or growth prospects.

What Investors Should Look For

When evaluating other stocks, investors should consider

**P/E ratio of 15 or lower**: This is generally a sign of an attractively valued stock. - **Comparison to peers**: A stock’s P/E ratio should be evaluated in the context of its industry, as some sectors (e.g., technology) typically trade at higher P/E ratios than others. - **Growth prospects**: A higher P/E ratio may be justified if the company has strong growth potential, but this should be supported by fundamentals.

Genesis Energy LP’s P/E ratio of 71.20 is a major weakness, as it suggests that the stock is overvalued relative to its earnings.

Moving Average Trend and Entry Timing

What Moving Averages Measure

Moving averages are technical indicators that smooth out price data to identify trends over a specific period. StockValueFinder uses moving averages to assess the overall trend of a stock’s price and to determine whether the trend is favorable for entry.

Why Moving Averages Matter

StockValueFinder’s system evaluates the moving average trend to provide timing discipline. A "BUY" or "HOLD" signal suggests that the stock is in an uptrend, while a "SELL" or "AVOID" signal indicates a downtrend or weak trend. For example: - A stock trading above its 200-day moving average is generally considered to be in an uptrend. - A stock trading below its 200-day moving average may be in a downtrend, which could signal higher risk.

Genesis Energy LP’s Moving Average Trend

Genesis Energy LP’s moving average signal is **"SELL / AVOID TREND"**, which indicates that the stock is in a weak or downtrending phase. This suggests that the stock’s price has been declining or struggling to maintain upward momentum, which could pose risks for investors.

What Investors Should Look For

When evaluating other stocks, investors should consider

**Uptrending stocks**: Stocks trading above their moving averages are generally in a stronger technical position. - **Downtrending stocks**: Stocks trading below their moving averages may be riskier, especially if the trend is strong. - **Trend confirmation**: Moving averages should be used in conjunction with other indicators to confirm trends.

Genesis Energy LP’s "SELL / AVOID TREND" signal is a red flag, as it suggests that the stock’s price trend is unfavorable.

Overall Financial Strengths and Weaknesses

Strengths

Based on the supplied data, Genesis Energy LP does not exhibit any clear financial strengths that meet StockValueFinder’s screening criteria. The company failed all core tests, including EPS consistency, ROIC, interest coverage, debt payback, and P/E valuation. This lack of strengths is reflected in the overall StockValueFinder score of 0%.

Weaknesses

Genesis Energy LP’s financial weaknesses are significant and span multiple dimensions

1. **Poor profitability**: The company’s negative ROIC (-0.25%) and failure of the EPS test suggest that it is not generating sufficient returns on its capital or earnings. 2. **High debt levels**: The debt payback period of 40.75 years indicates that the company’s debt burden is unsustainable relative to its cash flow. 3. **Weak interest coverage**: The failure of the interest coverage test suggests that the company may struggle to meet its debt obligations. 4. **Unattractive valuation**: The P/E ratio of 71.20 is extremely high, indicating that the stock may be overvalued relative to its earnings. 5. **Unfavorable trend**: The "SELL / AVOID TREND" signal suggests that the stock’s price trend is weak or declining.

These weaknesses collectively contribute to the StockValueFinder score of 0% and the "AVOID" rating.

Risks and Limitations

Financial Risks

Genesis Energy LP faces several financial risks based on the supplied data

**Debt risk**: The company’s high debt levels and long debt payback period (40.75 years) suggest that it may struggle to service its debt, especially during periods of economic downturn or rising interest rates. - **Profitability risk**: The negative ROIC (-0.25%) and failure of the EPS test indicate that the company is not generating adequate returns on its capital or earnings, which could limit its ability to reinvest in growth or pay dividends. - **Valuation risk**: The extremely high P/E ratio (71.20) suggests that the stock may be overvalued, which could lead to poor returns if earnings do not grow sufficiently to justify the valuation.

Industry Risks

As a midstream energy company, Genesis Energy LP is exposed to several industry-specific risks: - **Commodity price volatility**: While midstream companies often have fee-based contracts, they are still indirectly exposed to commodity price fluctuations, which can impact demand for their services. - **Regulatory risks**: The energy sector is heavily regulated, and changes in environmental, safety, or tax policies could impact the company’s operations and profitability. - **Competition**: The midstream sector is competitive, and companies must continually invest in infrastructure to maintain their market position.

Limitations of This Analysis

This analysis is based solely on the supplied data and does not include additional factors that could impact Genesis Energy LP’s performance, such as: - **Dividend history**: While not supplied, the company’s dividend sustainability is an important consideration for income investors. - **Recent news or events**: This analysis does not account for recent developments, such as acquisitions, lawsuits, or management changes. - **Analyst estimates**: This analysis does not include forward-looking estimates or projections, which could provide additional context.

Educational Conclusion

This educational review of Genesis Energy LP (GEL) has examined the company’s financial performance across multiple metrics, including EPS consistency, ROIC, interest coverage, debt payback, P/E valuation, and moving average trend. Based on the supplied data, Genesis Energy LP failed all core tests in StockValueFinder’s screening system, resulting in an overall score of 0% and an "AVOID" rating.

Key Takeaways for Investors

1. **EPS consistency matters**: Companies with stable and growing EPS are generally more attractive than those with erratic earnings. Genesis Energy LP failed this test, suggesting potential profitability challenges. 2. **ROIC reveals capital efficiency**: A negative ROIC (-0.25%) indicates that Genesis Energy LP is not generating sufficient returns on its invested capital, which is a red flag for investors. 3. **Interest coverage is critical for financial safety**: The failure of the interest coverage test suggests that the company may struggle to meet its debt obligations. 4. **Debt payback highlights balance sheet discipline**: A debt payback period of 40.75 years is extremely high and indicates that Genesis Energy LP’s debt levels are unsustainable relative to its cash flow. 5. **P/E ratio reflects valuation discipline**: A P/E ratio of 71.20 is significantly higher than StockValueFinder’s preferred threshold of 15, suggesting that the stock may be overvalued. 6. **Moving average trend provides timing discipline**: The "SELL / AVOID TREND" signal indicates that the stock’s price trend is unfavorable.

How to Apply These Lessons to Other Stocks

When evaluating other stocks, investors should

**Look for consistent EPS growth**: Companies with stable and growing earnings are often more resilient. - **Prioritize high ROIC**: A ROIC of 10% or higher is generally a sign of a high-quality business. - **Assess interest coverage**: An interest coverage ratio of 6x or higher is preferable for financial safety. - **Evaluate debt payback**: A debt payback period of 3 years or less is ideal for balance sheet discipline. - **Consider valuation**: A P/E ratio of 15 or lower is generally more attractive for value-oriented investors. - **Use trend analysis**: Moving averages can help identify favorable entry points and avoid stocks in downtrends.

Final Thoughts

Genesis Energy LP’s financial metrics highlight several areas of concern, including poor profitability, high debt levels, and an unattractive valuation. While no single metric should determine an investment decision, the combination of weaknesses across multiple dimensions suggests that the stock may pose elevated risks for investors.

This article is for research and educational purposes only. It is not personal financial advice, investment advice, or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.

Research links: Yahoo Finance | Seeking Alpha | Finviz | SEC Filings

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