FutureFuel's Poor Performance: A Decade of Underperformance Against the S&P 500

FutureFuel has significantly underperformed the S&P 500 in various time horizons, including the last decade (-71% vs. +229%), five years (-67% vs. +96%), and one year (-50% vs. +18%). The company's stock price has fluctuated due to uncertainty surrounding its core business, including the volatility of crude oil prices and the ongoing transition to renewable energy.

FutureFuel (NYSE: FF) has experienced significant underperformance relative to the S&P 500 over various time horizons. Over the last decade, the stock has underperformed the S&P 500 by -71% compared to a gain of +229% FutureFuel Is Surrounded By Too Much Uncertainty^[1]. This trend has continued, with the stock underperforming by -67% over the last five years and -50% over the last year FutureFuel Is Surrounded By Too Much Uncertainty^[1].

The company's core business, which includes biofuels and a range of chemical products, has faced substantial challenges. The biofuel business, in particular, has been affected by intense competition, high input costs, and regulatory uncertainty. These factors have led to a 51% plunge in revenue during the second quarter of 2025 compared to the prior year FutureFuel Is Surrounded By Too Much Uncertainty^[1].

FutureFuel's poor performance has also been influenced by the volatility of crude oil prices and the ongoing transition to renewable energy. The company has temporarily shut down its biodiesel plant due to exceptionally high input costs, further exacerbating its financial struggles FutureFuel Is Surrounded By Too Much Uncertainty^[1].

Despite these challenges, FutureFuel maintains a strong balance sheet, with a net cash position of $66 million, which represents 39% of its current market capitalization FutureFuel Is Surrounded By Too Much Uncertainty^[1]. This strong financial position allows the company to endure the current downturn and wait for business conditions to improve. Additionally, FutureFuel has continued to pay a generous dividend despite incurring losses, demonstrating its commitment to shareholders.

However, investors should approach FutureFuel with caution due to the high level of uncertainty surrounding its business. The company has not provided any guidance regarding the biofuel segment, and its recovery remains highly uncertain FutureFuel Is Surrounded By Too Much Uncertainty^[1]. Therefore, FutureFuel is currently rated as a "hold" rather than a "buy" by investors.

In conclusion, while FutureFuel's strong balance sheet and generous dividend provide some comfort, the company's underperformance and the uncertainty surrounding its core business make it a speculative investment. Investors should closely monitor FutureFuel's progress and be prepared for potential volatility in the stock price.