CVR Partners (UAN) reported second quarter 2026 results on July 29, highlighting higher sales, net income, and earnings per unit, along with increased fertilizer production and a larger cash distribution to common unitholders.

At a share price of $122.56, CVR Partners has seen a 1 month share price return of 9.03% and a year to date share price return of 20.75%, while the 1 year total shareholder return of 54.04% and 5 year total shareholder return approaching 4x suggest that momentum has been strong over longer periods.

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CVR Partners recently reported stronger results and a larger cash distribution, and the unit price has risen alongside these developments. The next step is to determine whether this strength is already fully reflected in the valuation.

Price-to-Earnings of 10.7x: Is it justified?

On Simply Wall St's numbers, CVR Partners is trading on a P/E of 10.7x, which screens as good value compared both to peers at 59.2x and the wider US Chemicals industry at 25.2x.

The P/E multiple compares the current unit price to earnings per unit and is a quick way to see how much investors are paying for each dollar of current earnings. For a fertilizer producer like CVR Partners, this helps frame how the market is pricing its recent profit growth and cash generation against other chemical companies.

With UAN also flagged as trading 52.1% below the SWS estimate of fair value based on future cash flows of $255.78 per unit, the current 10.7x P/E suggests the market is assigning a lower price tag to its earnings than both peers and the cash flow model indicate. Relative to the Chemicals industry average P/E of 25.2x and peer average of 59.2x, the gap is wide and points to a materially cheaper earnings multiple at the current $122.56 price.

Result: Price-to-Earnings of 10.7x (UNDERVALUED)

However, there are still risks that could challenge the current CVR Partners story, including fertilizer pricing pressure and any sustained drop in agricultural or industrial demand.

Another View on CVR Partners Using the SWS DCF Model

There is a second lens to use alongside the 10.7x P/E. The SWS DCF model puts CVR Partners' future cash flow value at $255.78 per unit, compared with the current $122.56 price. That implies trading 52.1% below this estimate, which raises a simple question: Is the market too cautious about how durable these cash flows might be?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CVR Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With CVR Partners showing both appealing valuation metrics and clear areas of uncertainty, it makes sense to move quickly and weigh the full picture yourself. To see how the positives stack up against the drawbacks, review the 2 key rewards and 2 important warning signs

Looking for more CVR Partners style investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.