Toronto Stock Exchange / Materials / Metals & Mining
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
DPM gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 818 industry peers in the Metals & Mining industry. DPM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DPM is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, DPM could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
DPM had positive earnings in the past year.
DPM had a positive operating cash flow in the past year.
In the past 5 years DPM has always been profitable.
DPM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.60%, DPM belongs to the top of the industry, outperforming 96.09% of the companies in the same industry.
DPM has a better Return On Equity (18.33%) than 94.99% of its industry peers.
DPM has a Return On Invested Capital of 15.64%. This is amongst the best in the industry. DPM outperforms 97.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DPM is significantly below the industry average of 24.74%.
Industry Rank
Sector Rank
ROA
16.6%
ROE
18.33%
ROIC
15.64%
ROA(3y)11.55%
ROA(5y)14.53%
ROE(3y)13.06%
ROE(5y)16.9%
ROIC(3y)16.22%
ROIC(5y)18.07%
1.3 Margins
Looking at the Profit Margin, with a value of 38.86%, DPM belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
In the last couple of years the Profit Margin of DPM has grown nicely.
The Operating Margin of DPM (39.06%) is better than 97.92% of its industry peers.
DPM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 57.05%, DPM belongs to the best of the industry, outperforming 96.82% of the companies in the same industry.
In the last couple of years the Gross Margin of DPM has grown nicely.
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DPM is creating value.
The number of shares outstanding for DPM has been reduced compared to 1 year ago.
The number of shares outstanding for DPM has been reduced compared to 5 years ago.
DPM has a better debt/assets ratio than last year.
2.2 Solvency
DPM has an Altman-Z score of 13.67. This indicates that DPM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DPM (13.67) is better than 77.63% of its industry peers.
DPM has a debt to FCF ratio of 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.14, DPM belongs to the top of the industry, outperforming 96.70% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that DPM is not too dependend on debt financing.
DPM has a Debt to Equity ratio of 0.01. This is comparable to the rest of the industry: DPM outperforms 50.49% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
0.01
Debt/FCF
0.14
Altman-Z
13.67
ROIC/WACC1.81
WACC8.64%
2.3 Liquidity
A Current Ratio of 11.99 indicates that DPM has no problem at all paying its short term obligations.
The Current ratio of DPM (11.99) is better than 87.53% of its industry peers.
DPM has a Quick Ratio of 11.60. This indicates that DPM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 11.60, DPM belongs to the best of the industry, outperforming 87.41% of the companies in the same industry.
DPM is valuated reasonably with a Price/Earnings ratio of 10.35.
DPM's Price/Earnings ratio is rather cheap when compared to the industry. DPM is cheaper than 94.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.21. DPM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.94, which indicates a very decent valuation of DPM.
93.28% of the companies in the same industry are more expensive than DPM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, DPM is valued rather cheaply.
Industry Rank
Sector Rank
PE
10.35
Fwd PE
9.94
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DPM is valued cheaply inside the industry as 94.87% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DPM indicates a rather cheap valuation: DPM is cheaper than 93.40% of the companies listed in the same industry.
Industry Rank
Sector Rank
P/FCF
25.2
EV/EBITDA
5.78
4.3 Compensation for Growth
DPM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DPM has an outstanding profitability rating, which may justify a higher PE ratio.
DPM's earnings are expected to decrease with -6.47% in the coming years. This may justify a cheaper valuation.
DPM's Dividend Yield is rather good when compared to the industry average which is at 2.84. DPM pays more dividend than 96.45% of the companies in the same industry.
With a Dividend Yield of 1.17, DPM pays less dividend than the S&P500 average, which is at 2.41.
Industry Rank
Sector Rank
Dividend Yield
1.17%
5.2 History
DPM has been paying a dividend for over 5 years, so it has already some track record.
DPM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
DPM pays out 12.26% of its income as dividend. This is a sustainable payout ratio.