FutureFuel (FF) Stock Analysis & Winston Score

FutureFuel Corp. is a chemical company based in Batesville, Arkansas. It makes two main types of products: specialty chemicals used by other manufacturers, and biofuels, primarily biodiesel made from vegetable oils and animal fats. Its customers include large industrial companies and fuel blenders across the United States. The company earns revenue by selling these chemicals and biodiesel in bulk, so its profits are closely tied to raw material costs and commodity prices. FutureFuel operates almost entirely within the United States and is a relatively small player in both industries, with a market cap of around $200 million. The negative margins shown in recent financials reflect how badly commodity price swings and weak biodiesel demand can hurt a company of this size — the biggest ongoing risk is that input costs, like soybean oil, rise faster than the prices FutureFuel can charge for its products.