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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.44
TSO's Cash to Debt is ranked higher than
70% of the 179 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 0.43 vs. TSO: 0.44 )
TSO' s 10-Year Cash to Debt Range
Min: 0.01   Max: 1.03
Current: 0.44

0.01
1.03
Equity to Asset 0.32
TSO's Equity to Asset is ranked higher than
61% of the 179 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 0.44 vs. TSO: 0.32 )
TSO' s 10-Year Equity to Asset Range
Min: 0.24   Max: 0.53
Current: 0.32

0.24
0.53
Interest Coverage 8.75
TSO's Interest Coverage is ranked higher than
70% of the 113 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 8.75 vs. TSO: 8.75 )
TSO' s 10-Year Interest Coverage Range
Min: 0.9   Max: 17.1
Current: 8.75

0.9
17.1
F-Score: 5
Z-Score: 4.00
M-Score: -2.12
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 3.52
TSO's Operating margin (%) is ranked higher than
83% of the 178 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 1.98 vs. TSO: 3.52 )
TSO' s 10-Year Operating margin (%) Range
Min: -0.34   Max: 7.27
Current: 3.52

-0.34
7.27
Net-margin (%) 1.10
TSO's Net-margin (%) is ranked higher than
71% of the 178 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 1.42 vs. TSO: 1.10 )
TSO' s 10-Year Net-margin (%) Range
Min: -1.64   Max: 7.64
Current: 1.1

-1.64
7.64
ROE (%) 9.58
TSO's ROE (%) is ranked higher than
77% of the 175 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 9.48 vs. TSO: 9.58 )
TSO' s 10-Year ROE (%) Range
Min: -13.18   Max: 32.01
Current: 9.58

-13.18
32.01
ROA (%) 3.08
TSO's ROA (%) is ranked higher than
75% of the 178 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 3.44 vs. TSO: 3.08 )
TSO' s 10-Year ROA (%) Range
Min: -3.11   Max: 13.57
Current: 3.08

-3.11
13.57
ROC (Joel Greenblatt) (%) 17.48
TSO's ROC (Joel Greenblatt) (%) is ranked higher than
83% of the 176 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 10.45 vs. TSO: 17.48 )
TSO' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -1.1   Max: 46.1
Current: 17.48

-1.1
46.1
Revenue Growth (%) 23.20
TSO's Revenue Growth (%) is ranked higher than
87% of the 135 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 13.70 vs. TSO: 23.20 )
TSO' s 10-Year Revenue Growth (%) Range
Min: -5.5   Max: 56.4
Current: 23.2

-5.5
56.4
EBITDA Growth (%) 34.80
TSO's EBITDA Growth (%) is ranked higher than
89% of the 116 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 9.60 vs. TSO: 34.80 )
TSO' s 10-Year EBITDA Growth (%) Range
Min: -38.8   Max: 110.3
Current: 34.8

-38.8
110.3
» TSO's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

TSO Guru Trades in Q1 2013

Ron Baron 928 sh (New)
Louis Moore Bacon 115,000 sh (New)
T Boone Pickens 99,657 sh (New)
Steven Cohen 1,219,724 sh (+261.9%)
Jeremy Grantham 158,108 sh (+93.01%)
George Soros 330,000 sh (unchged)
Ken Heebner Sold Out
Pioneer Investments Sold Out
Daniel Loeb Sold Out
Caxton Associates Sold Out
Joel Greenblatt 132,120 sh (-2.21%)
Jim Simons 1,032,100 sh (-30.41%)
Jean-Marie Eveillard 915,844 sh (-44.26%)
Paul Tudor Jones 6,300 sh (-48.36%)
Donald Smith 496,053 sh (-52.06%)
Ray Dalio 108,572 sh (-55.01%)
» More
Q2 2013

TSO Guru Trades in Q2 2013

Ron Baron 4,997 sh (+438.47%)
Ray Dalio 384,022 sh (+253.7%)
Louis Moore Bacon 335,000 sh (+191.3%)
Paul Tudor Jones 10,400 sh (+65.08%)
Joel Greenblatt 168,292 sh (+27.38%)
Jean-Marie Eveillard 987,177 sh (+7.79%)
Louis Moore Bacon 300,000 sh (unchged)
Donald Smith 375,668 sh (-24.27%)
Jeremy Grantham 115,784 sh (-26.77%)
T Boone Pickens 64,552 sh (-35.23%)
Jim Simons 209,500 sh (-79.7%)
Steven Cohen 239,867 sh (-80.33%)
» More
Q3 2013

TSO Guru Trades in Q3 2013

John Burbank 8,000 sh (New)
Andreas Halvorsen 723,102 sh (New)
Caxton Associates 90,000 sh (New)
Steven Cohen 3,138,301 sh (+1208.35%)
Ron Baron 5,790 sh (+15.87%)
Louis Moore Bacon 150,000 sh (unchged)
George Soros 375,000 sh (unchged)
Caxton Associates 520,000 sh (unchged)
Ray Dalio Sold Out
Donald Smith 375,543 sh (-0.03%)
Jeremy Grantham 101,705 sh (-12.16%)
Louis Moore Bacon 270,000 sh (-19.4%)
Paul Tudor Jones 7,500 sh (-27.88%)
Jean-Marie Eveillard 371,423 sh (-62.38%)
T Boone Pickens 10,000 sh (-84.51%)
Joel Greenblatt 9,688 sh (-94.24%)
Jim Simons 8,800 sh (-95.8%)
» More
Q4 2013

TSO Guru Trades in Q4 2013

David Dreman 1,314 sh (New)
Pioneer Investments 91,462 sh (New)
Ray Dalio 158,938 sh (New)
NWQ Managers 292,659 sh (New)
Jean-Marie Eveillard 1,753,423 sh (+372.08%)
Andreas Halvorsen 1,813,349 sh (+150.77%)
Ron Baron 8,677 sh (+49.86%)
Caxton Associates 2,500,000 sh (unchged)
John Burbank Sold Out
Joel Greenblatt Sold Out
Jim Simons Sold Out
Donald Smith 355,625 sh (-5.3%)
Paul Tudor Jones 6,296 sh (-16.05%)
Louis Moore Bacon 160,800 sh (-40.44%)
Caxton Associates 37,468 sh (-58.37%)
Jeremy Grantham 17,263 sh (-83.03%)
Steven Cohen 30,662 sh (-99.02%)
» More
» Details

Insider Trades

Latest Guru Trades with TSO

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Jean-Marie Eveillard 2013-12-31 Add 372.08%0.22%$41.54 - $59.08 $ 51.25-2%1753423
Ray Dalio 2013-12-31 New Buy0.08%$41.54 - $59.08 $ 51.25-2%158938
David Dreman 2013-12-31 New Buy0.01%$41.54 - $59.08 $ 51.25-2%1314
Joel Greenblatt 2013-12-31 Sold Out 0.01%$41.54 - $59.08 $ 51.25-2%0
John Burbank 2013-12-31 Sold Out 0.01%$41.54 - $59.08 $ 51.25-2%0
Ron Baron 2013-12-31 Add 49.86%$41.54 - $59.08 $ 51.25-2%8677
Joel Greenblatt 2013-09-30 Reduce -94.24%0.36%$44.41 - $57.75 $ 51.253%9688
Ray Dalio 2013-09-30 Sold Out 0.18%$44.41 - $57.75 $ 51.253%0
Jean-Marie Eveillard 2013-09-30 Reduce -62.38%0.1%$44.41 - $57.75 $ 51.253%371423
John Burbank 2013-09-30 New Buy0.01%$44.41 - $57.75 $ 51.253%8000
Donald Smith 2013-06-30 Reduce -24.27%0.16%$48.37 - $64.9 $ 51.25-8%375668
Ray Dalio 2013-06-30 Add 253.7%0.13%$48.37 - $64.9 $ 51.25-8%384022
Joel Greenblatt 2013-06-30 Add 27.38%0.08%$48.37 - $64.9 $ 51.25-8%168292
Ron Baron 2013-06-30 Add 438.47%$48.37 - $64.9 $ 51.25-8%4997
Daniel Loeb 2013-03-31 Sold Out 2.9%$40.22 - $58.97 $ 51.250%0
Donald Smith 2013-03-31 Reduce -52.06%0.68%$40.22 - $58.97 $ 51.250%496053
Jean-Marie Eveillard 2013-03-31 Reduce -44.26%0.12%$40.22 - $58.97 $ 51.250%915844
Ray Dalio 2013-03-31 Reduce -55.01%0.06%$40.22 - $58.97 $ 51.250%108572
Ron Baron 2013-03-31 New Buy$40.22 - $58.97 $ 51.250%928
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Tesoro Corporation

Daniel Loeb Comments on Tesoro Corporation - Apr 04, 2013


Tesoro Corporation (TSO) is a $5.7 billion refining and marketing company with assets in the West Coast and Rocky Mountain regions of the US. Tesoro has several characteristics we like in an investment: 1) significant hidden value in high-multiple assets like retail, pipelines, and General Partner interests; 2) impending transactions/projects that are underappreciated by the market; and 3) a shareholder-friendly management team focused on creating value. While it is perhaps unusual to invest in a company following a quarter(Q3 2012) in which the stock appreciated by ~68%, we believe Tesoro remains misunderstood by the market; as evidence, current sell-side analyst price targets range from $35 to $84!

Tesoro trades at one of the lowest multiples (2.6x) in the refining sector on 2012 EBITDA,despite the fact that refining peers are currently “over-earning” due to wide LLS-WTI spreads. In contrast, the bulk of Tesoro’s portfolio (West Coast) is earning margins consistent with historical levels, while the company’s two Mid-Continent assets (Mandan,ND and Salt Lake City, UT) should continue to experience wide crude discounts given their niche positions and distance from coastal markets. Contrary to our expectations for other refiners, we see Tesoro’s earnings rising in the coming years, notwithstanding shrinking WTI-LLS spreads. Part of this earnings growth will come from the pending acquisition of BP’s 266kbpd Carson refinery. After deducting working capital and ~$1.125 billion of logistics and retail value, Tesoro paid about $50 million for a refinery that is estimated to generate $375 million of EBITDA and yield an additional ~$250 million in annual synergies. We expect this deal to be approved by regulators in the first half of 2013. Finally, Tesoro is one of the last refining companies to begin returning meaningful amounts of cash to shareholders.

The company should continue to repurchase significant amounts of its undervalued stock in the near-term and subsequently use a combination of regular and special dividends to distribute excess cash to shareholders.Using conservative assumptions, we see Tesoro generating about $9 per share in annual excess FCF on a normalized basis and our expectation is that shares can double from the current price of $40. We believe the Q3 story was only the beginning, and are happy to own Tesoro for its next few chapters.

From Daniel Loeb’s fourth quarter commentary.


Check out Daniel Loeb latest stock trades

Daniel Loeb Comments on Tesoro Corporation - Jan 09, 2013

New Equity Position: Tesoro Corporation
Tesoro Corporation (TSO) is a $5.7 billion refining and marketing company with assets in the West Coast and Rocky Mountain regions of the US. Tesoro has several characteristics we like in an investment: 1) significant hidden value in high-multiple assets like retail, pipelines, and General Partner interests; 2) impending transactions/projects that are underappreciated by the market; and 3) a shareholder-friendly management team focused on creating value. While it is perhaps unusual to invest in a company following a quarter (Q3 2012) in which the stock appreciated by ~68%, we believe Tesoro remains misunderstood by the market; as evidence, current sell-side analyst price targets range from $35 to $84!

Tesoro trades at one of the lowest multiples (2.6x) in the refining sector on 2012 EBITDA, despite the fact that refining peers are currently “over-earning” due to wide LLS-WTI spreads. In contrast, the bulk of Tesoro’s portfolio (West Coast) is earning margins consistent with historical levels, while the company’s two Mid-Continent assets (Mandan, ND and Salt Lake City, UT) should continue to experience wide crude discounts given their niche positions and distance from coastal markets. Contrary to our expectations for other refiners, we see Tesoro’s earnings rising in the coming years, notwithstanding shrinking WTI-LLS spreads.

Part of this earnings growth will come from the pending acquisition of BP’s 266kbpd Carson refinery. After deducting working capital and ~$1.125 billion of logistics and retail value, Tesoro paid about $50 million for a refinery that is estimated to generate $375 million of EBITDA and yield an additional ~$250 million in annual synergies. We expect this deal to be approved by regulators in the first half of 2013. Finally, Tesoro is one of the last refining companies to begin returning meaningful amounts of cash to shareholders. The company should continue to repurchase significant amounts of its undervalued stock in the near-term and subsequently use a combination of regular and special dividends to distribute excess cash to shareholders.

Using conservative assumptions, we see Tesoro generating about $9 per share in annual excess FCF on a normalized basis and our expectation is that shares can double from the current price of $40. We believe the Q3 story was only the beginning, and are happy to own Tesoro for its next few chapters.

From Daniel Loeb's Third Point fourth quarter investor letter.


Check out Daniel Loeb latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 17.10
TSO's P/E(ttm) is ranked higher than
64% of the 149 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 14.30 vs. TSO: 17.10 )
TSO' s 10-Year P/E(ttm) Range
Min: 4.05   Max: 19.38
Current: 17.1

4.05
19.38
P/B 1.50
TSO's P/B is ranked higher than
67% of the 170 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 1.45 vs. TSO: 1.50 )
TSO' s 10-Year P/B Range
Min: 0.34   Max: 3.11
Current: 1.5

0.34
3.11
P/S 0.20
TSO's P/S is ranked higher than
78% of the 181 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 0.26 vs. TSO: 0.20 )
TSO' s 10-Year P/S Range
Min: 0.04   Max: 0.47
Current: 0.2

0.04
0.47
PFCF 23.90
TSO's PFCF is ranked higher than
53% of the 104 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 17.30 vs. TSO: 23.90 )
TSO' s 10-Year PFCF Range
Min: 1.92   Max: 77.21
Current: 23.9

1.92
77.21
EV-to-EBIT 6.40
TSO's EV-to-EBIT is ranked higher than
87% of the 155 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 11.78 vs. TSO: 6.40 )
TSO' s 10-Year EV-to-EBIT Range
Min: 2.4   Max: 34.1
Current: 6.4

2.4
34.1
PEG 0.40
TSO's PEG is ranked higher than
78% of the 74 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 0.84 vs. TSO: 0.40 )
TSO' s 10-Year PEG Range
Min: 0.09   Max: 6.29
Current: 0.4

0.09
6.29
Shiller P/E 23.60
TSO's Shiller P/E is ranked higher than
56% of the 75 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 17.18 vs. TSO: 23.60 )
TSO' s 10-Year Shiller P/E Range
Min: 2.39   Max: 31.34
Current: 23.6

2.39
31.34

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.90
TSO's Dividend Yield is ranked lower than
61% of the 155 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 2.63 vs. TSO: 1.90 )
TSO' s 10-Year Dividend Yield Range
Min: 0.05   Max: 5.09
Current: 1.9

0.05
5.09
Dividend Payout 0.32
TSO's Dividend Payout is ranked higher than
65% of the 123 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 0.29 vs. TSO: 0.32 )
TSO' s 10-Year Dividend Payout Range
Min: 0.01   Max: 0.3
Current: 0.32

0.01
0.3
Yield on cost (5-Year) 1.90
TSO's Yield on cost (5-Year) is ranked lower than
61% of the 157 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 2.70 vs. TSO: 1.90 )
TSO' s 10-Year Yield on cost (5-Year) Range
Min: 0.05   Max: 5.09
Current: 1.9

0.05
5.09
Share Buyback Rate 0.80
TSO's Share Buyback Rate is ranked higher than
92% of the 78 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: -3.40 vs. TSO: 0.80 )
TSO' s 10-Year Share Buyback Rate Range
Min: 0.8   Max: -22.6
Current: 0.8

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.70
TSO's Price/Tangible Book is ranked higher than
64% of the 163 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 1.50 vs. TSO: 1.70 )
TSO' s 10-Year Price/Tangible Book Range
Min: 0.45   Max: 2.52
Current: 1.7

0.45
2.52
Price/DCF (Projected) 0.90
TSO's Price/DCF (Projected) is ranked higher than
83% of the 88 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 1.30 vs. TSO: 0.90 )
TSO' s 10-Year Price/DCF (Projected) Range
Min: 0.2   Max: 1.09
Current: 0.9

0.2
1.09
Price/Median PS Value 1.10
TSO's Price/Median PS Value is ranked higher than
64% of the 168 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 0.90 vs. TSO: 1.10 )
TSO' s 10-Year Price/Median PS Value Range
Min: 0.23   Max: 2.86
Current: 1.1

0.23
2.86
Price/Peter Lynch Fair Value 0.70
TSO's Price/Peter Lynch Fair Value is ranked higher than
73% of the 45 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 0.80 vs. TSO: 0.70 )
TSO' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.23   Max: 0.96
Current: 0.7

0.23
0.96
Price/Graham Number 1.10
TSO's Price/Graham Number is ranked higher than
68% of the 145 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 1.00 vs. TSO: 1.10 )
TSO' s 10-Year Price/Graham Number Range
Min: 0.34   Max: 3.11
Current: 1.1

0.34
3.11
Earnings Yield (Greenblatt) 15.60
TSO's Earnings Yield (Greenblatt) is ranked higher than
86% of the 160 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 8.50 vs. TSO: 15.60 )
TSO' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.9   Max: 40.8
Current: 15.6

2.9
40.8
Forward Rate of Return (Yacktman) 49.61
TSO's Forward Rate of Return (Yacktman) is ranked higher than
95% of the 113 Companies
in the Global Oil & Gas Refining & Marketing industry.

( Industry Median: 10.44 vs. TSO: 49.61 )
TSO' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -60.7   Max: 69.8
Current: 49.61

-60.7
69.8

Business Description

Industry: Oil & Gas - Refining & Marketing » Oil & Gas Refining & Marketing
Compare:IMO, NGL, MPC, VLO, JXHLY » details
Traded in other countries:TX5.Germany
Tesoro Corporation was incorporated in Delaware in 1968 under the name Tesoro Petroleum Corporation. On November 8, 2004, its name was changed to Tesoro Corporation. The Company is an independent petroleum refiner and marketer in the United States with two operating segments - refining crude oil and other feedstocks and selling petroleum products in bulk and wholesale markets and selling motor fuels and convenience products in the retail market. Through its refining segment, the Company produces refined products, primarily gasoline and gasoline blendstocks, jet fuel, diesel fuel and heavy fuel oils for sale to a variety of commercial customers in the western and mid-continental United States. Retail segment distributes motor fuels through a network of gas stations, primarily under the Tesoro, Shell, and USA GasolineTM brands. Tesoro owns and operates seven petroleum refineries, located in California, Alaska and Washington Hawaii and North Dakota and Utah, and sells refined products to a variety of customers in the western and mid-continental United States. Its refineries produce a high proportion of refined product sales volumes, and it purchases the remainder from other refiners and suppliers. Tesoro purchases crude oil and other feedstocks for refineries from a diversified supply of domestic and foreign sources through term agreements with renewal provisions and in the spot market. Refining yield represents production volumes of refined products consisting primarily of gasoline and gasoline blendstocks, jet fuel, diesel fuel and heavy fuel oils. The Company also manufactures other products, including liquefied petroleum gas, petroleum coke and asphalt. The Company sells refined products including gasoline and gasoline blendstocks, jet fuel, diesel fuel, heavy oil and residual products in both the bulk and wholesale markets. Through its network of retail stations, it sells gasoline and diesel fuel in the western and mid-continental United States. All of the Company's operations, like those of other companies engaged in similar businesses, face frequently changing federal, state, regional and local laws, regulations and ordinances relating to the protection of the environment, including those governing emissions or discharges to the air and water, the handling and disposal of solid and hazardous wastes and the remediation of contamination.

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