IEP Stock Risk & Deep Value Analysis
Icahn Enterprises LP
Energy • Oil & Gas Refining & Marketing
DVR Score
out of 10
What You Need to Know About IEP Stock
We analyzed Icahn Enterprises LP using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran IEP through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
IEP Risk Analysis & Red Flags
What Could Go Wrong
IEP's diversified holdings, primarily in mature and cyclical industries, continue to underperform and generate net losses, leading to further asset write-downs and sustained erosion of shareholder value, making it impossible to achieve even modest appreciation.
Risk Matrix
Overall
Aggressive
Financial
High
Market
Medium
Competitive
Medium
Execution
High
Regulatory
Low
Red Flags
- ⚠
Full-year 2025 net loss of $293 million, indicating poor profitability
- ⚠
Q4 2025 earnings missed both EPS and revenue expectations across multiple segments
- ⚠
Business model is fundamentally unsuitable for 10x growth within the specified timeframe
- ⚠
Very high insider ownership (86.89% by Carl Icahn entities) limits public float and potential for broad institutional interest.
Upcoming Risk Events
- 📅
Continued underperformance and net losses in Q1 2026 earnings
- 📅
Economic downturn impacting cyclical segments (energy, automotive, real estate)
- 📅
Failure of activist campaigns to generate desired value
When to Reconsider
- 🚪
Persistent net losses for two consecutive quarters with no clear path to profitability
- 🚪
Significant decline in net asset value or book value per unit
- 🚪
Announced major share dilution not offset by strategic high-growth acquisitions.
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What Does Icahn Enterprises LP (IEP) Do?
Market Cap
$5.13B
Sector
Energy
Industry
Oil & Gas Refining & Marketing
Employees
15,037
Icahn Enterprises L.P., through its subsidiaries engages in the investment, energy, automotive, food packaging, real estate, home fashion and pharma in the United States and internationally. The Investment segment invests its proprietary capital through various private investment funds; and it provides investment advisory, administrative, and back-office services to the investment funds. The Energy segment engages in refining and marketing of petroleum in the form of gasoline, diesel, jet fuel, and distillates; renewable fuels refine renewable feedstocks, such as soybean oil, corn oil, and other related renewable feedstocks into renewable diesel and markets renewable products; and nitrogen fertilizer produces and markets nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment engages in repair and maintenance of automotive; sale of installed parts or materials related to automotive services; and sale of automotive aftermarket parts and retailed merchandise. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings used to prepare and package processed meat products. The Real Estate segment consists of investment properties, including land, retail, office, and industrial properties; and development and sale of single-family homes; and the operations of a resort and two country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services; and develops approved therapies and product candidates. Icahn Enterprises L.P. was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.
Visit Icahn Enterprises LP WebsiteInvestment Thesis
IEP is not a 10x growth opportunity. It represents a potential deep value play for investors seeking exposure to Carl Icahn's activist investing prowess and potential capital return via distributions. The thesis hinges on Icahn's ability to unlock value from undervalued assets within the diversified portfolio, rather than organic growth from scalable businesses.
Is IEP Stock Undervalued?
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IEP Price Targets & Strategy
12-Month Target
$9.50
Bull Case
$10.50
Bear Case
$7.00
Valuation Basis
Based on a conservative 0.6x Price/Sales multiple applied to FY25 annual revenue of $10.02B, resulting in an estimated market cap of ~$6.01B, which translates to ~$10.33/unit (using ~581.9M units outstanding). Target reflects stabilization rather than growth.
Entry Strategy
Given high risk and low growth potential, no strong entry recommendation for growth investors. Speculative entry on dips towards $7.50 (historical support) could be considered for deep value investors, but with very limited conviction.
Exit Strategy
Take profit at $9.50-$10.50 if unit price stabilizes or slightly appreciates. Implement a strict stop-loss below $7.00 if fundamental deterioration or market sentiment worsens.
Portfolio Allocation
Less than 1% for aggressive risk tolerance only, as a deep value/activist play, not a growth investment.
Price Targets & Strategy
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Is IEP Financially Healthy?
Valuation
P/E Ratio
-1.23
Forward P/E
-2.75
Profitability
Gross Margin
12.45%
Operating Margin
-4.25%
Net Margin
-3.22%
Return on Equity
-15.82%
Revenue Growth
-3.87%
EPS
$-0.60
Balance Sheet
Current Ratio
2.79
Quick Ratio
2.34
Debt/Equity
3.41
Other
Beta (Volatility)
0.76
Dividend Yield
24.83%
Does IEP Have a Competitive Moat?
Sign in to unlockMoat Rating
⚪ None
Moat Trend
Stable
Moat Sources
1 Identified
The 'moat' of Carl Icahn's influence and activist strategy is durable as long as he remains active and successful in identifying undervalued companies and driving change. However, this is more a personal moat than a company-wide structural moat for IEP's diversified operating businesses.
Moat Erosion Risks
- •Underperformance of activist targets or operating segments
- •Succession planning challenges for Carl Icahn's role
- •Regulatory changes affecting activist investing strategies
IEP Competitive Moat Analysis
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IEP Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral
Institutional Sentiment
Negative (based on historical 'Sell' ratings and lack of recent positive coverage)
Insider Activity (Form 4)
Carl Icahn-affiliated entities received 32,536,774 depositary units via quarterly distribution on April 15, 2026, increasing their stake to 86.89%. No other executive buy/sell activity reported in the last 90 days.
Options Flow
Normal options activity (no specific unusual activity reported in research).
Earnings Intelligence
Next Earnings
2026-05-06
Surprise Probability
Medium
Historical Earnings Pattern
IEP's unit price has been sensitive to earnings reports, typically reacting negatively to misses, which have been frequent recently.
Key Metrics to Watch
Competitive Position
Top Competitor
Not directly comparable due to unique activist holding company structure.
Market Share Trend
Stable (for the diversified portfolio as a whole, specific segment trends are not detailed but overall performance is weak).
Valuation vs Peers
Difficult to perform a direct peer comparison on traditional metrics (like P/E) due to negative earnings and a highly diversified structure. Trading at a Price/Sales ratio of ~0.51x, which may appear cheap but is justified by net losses and limited growth.
Competitive Advantages
- •Carl Icahn's reputation and expertise in activist investing and corporate turnarounds
- •Diversified asset base across various industries
Market Intelligence
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What Could Drive IEP Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings Report on Wednesday, May 6, 2026
Medium-Term (6-18 months)
- •Potential strategic asset sales or restructurings within the portfolio
- •Successful activist campaign in one of its significant holdings
Long-Term (18+ months)
- •No clear long-term catalysts for 10x growth from the diversified holding company structure
Catalysts & Growth Drivers
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What's the Bull Case for IEP?
- ✓
Sustained improvement in net income and operating cash flow across operating segments
- ✓
Announcement of significant value-accretive activist campaigns or asset sales
- ✓
Significant increase in unit price accompanied by improved fundamentals
Bull Case Analysis
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Competing with IEP
See how Icahn Enterprises LP compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Icahn Enterprises LP IEP | $5.1B | 0.1 | -1.2 | $10.0B | -3.2% | -3.9% | |
Chevron Corp CVX | $317.8B | 0.1 | 20.3 | — | — | — | Compare → |
EOG Resources Inc EOG | — | 1.2 | — | — | — | — | Compare → |
Slb NV SLB | $79.4B | 0.9 | 23.5 | $40.0B | 9.4% | -1.6% | Compare → |
Exxon Mobil Corp XOM | $644.6B | 2.0 | 22.3 | $85.1B | 8.9% | -4.5% | Compare → |
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How Icahn Enterprises LP Makes Money
Icahn Enterprises LP (IEP) is a diversified holding company run by legendary activist investor Carl Icahn. It generates revenue and seeks to create value primarily through two avenues: (1) acquiring significant stakes in publicly traded companies and actively engaging with their management to drive strategic changes and improve performance (activist investing), and (2) owning and operating a varied portfolio of businesses across sectors such as energy, automotive parts distribution, food packaging, and real estate. The company's performance is tied to the success of its investment strategies and the operational results of its diverse wholly-owned subsidiaries.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Icahn Enterprises LP (IEP)?
As of April 23, 2026, Icahn Enterprises LP has a DVR Score of 0.1 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Icahn Enterprises LP?
Icahn Enterprises LP's market capitalization is approximately $5.1B. The company operates in the Energy sector within the Oil & Gas Refining & Marketing industry.
What ticker symbol does Icahn Enterprises LP use?
IEP is the ticker symbol for Icahn Enterprises LP. The company trades on the NMS.
What is the risk level for IEP stock?
Our analysis rates Icahn Enterprises LP's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of IEP?
Icahn Enterprises LP currently has a price-to-earnings (P/E) ratio of -1.2. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Does Icahn Enterprises LP pay a dividend?
Yes, Icahn Enterprises LP pays a dividend with a current yield of approximately 24.83%.
Is Icahn Enterprises LP's revenue growing?
Icahn Enterprises LP has reported revenue growth of -3.9%. Revenue has been declining, which warrants closer examination.
Is IEP stock profitable?
Icahn Enterprises LP has a profit margin of -3.2%. The company is currently unprofitable.
How often is the IEP DVR analysis updated?
Our AI-powered analysis of Icahn Enterprises LP is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 23, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for IEP (Icahn Enterprises LP) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.