Crestwood Equity Partners LP New (CEQP) Stock Fundamental Analysis
NYSE:CEQP - New York Stock Exchange, Inc. - US2263442087 - Currency: USD
We assign a fundamental rating of 4 out of 10 to CEQP. CEQP was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of CEQP have multiple concerns. CEQP is not valued too expensively and it also shows a decent growth rate. Finally CEQP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CEQP was profitable.
CEQP had a positive operating cash flow in the past year.
In the past 5 years CEQP reported 4 times negative net income.
In the past 5 years CEQP always reported a positive cash flow from operatings.
1.2 Ratios
CEQP has a worse Return On Assets (1.63%) than 74.21% of its industry peers.
CEQP has a Return On Equity of 5.37%. This is in the lower half of the industry: CEQP underperforms 71.49% of its industry peers.
With a Return On Invested Capital value of 5.34%, CEQP is not doing good in the industry: 71.04% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for CEQP is significantly below the industry average of 25.73%.
The last Return On Invested Capital (5.34%) for CEQP is above the 3 year average (4.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 5.37% | ||
| ROIC | 5.34% |
ROA(3y)-1.92%
ROA(5y)-0.36%
ROE(3y)-7.04%
ROE(5y)-2.01%
ROIC(3y)4.49%
ROIC(5y)3.89%
1.3 Margins
CEQP has a Profit Margin of 1.96%. This is in the lower half of the industry: CEQP underperforms 75.57% of its industry peers.
The Operating Margin of CEQP (7.64%) is worse than 74.66% of its industry peers.
In the last couple of years the Operating Margin of CEQP has grown nicely.
With a Gross Margin value of 20.02%, CEQP is not doing good in the industry: 71.49% of the companies in the same industry are doing better.
CEQP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.64% | ||
| PM (TTM) | 1.96% | ||
| GM | 20.02% |
OM growth 3Y0.43%
OM growth 5Y24.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.82%
GM growth 5Y5.1%
2. Health
2.1 Basic Checks
CEQP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CEQP has more shares outstanding than it did 1 year ago.
The debt/assets ratio for CEQP is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of CEQP is 17.41, which is on the high side as it means it would take CEQP, 17.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.41, CEQP is doing worse than 66.06% of the companies in the same industry.
A Debt/Equity ratio of 1.70 is on the high side and indicates that CEQP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.70, CEQP is not doing good in the industry: 80.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 17.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.65
WACC8.16%
2.3 Liquidity
CEQP has a Current Ratio of 1.37. This is a normal value and indicates that CEQP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, CEQP is in line with its industry, outperforming 59.73% of the companies in the same industry.
CEQP has a Quick Ratio of 1.10. This is a normal value and indicates that CEQP is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, CEQP perfoms like the industry average, outperforming 57.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 764.29% over the past year.
The Revenue has decreased by -6.83% in the past year.
Measured over the past years, CEQP shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
EPS 1Y (TTM)764.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%728.57%
Revenue 1Y (TTM)-6.83%
Revenue growth 3Y23.55%
Revenue growth 5Y9.11%
Sales Q2Q%-29.48%
3.2 Future
The Earnings Per Share is expected to grow by 117.91% on average over the next years. This is a very strong growth
Based on estimates for the next years, CEQP will show a very strong growth in Revenue. The Revenue will grow by 24.06% on average per year.
EPS Next Y761.73%
EPS Next 2Y187.44%
EPS Next 3Y117.91%
EPS Next 5YN/A
Revenue Next Year35.68%
Revenue Next 2Y16%
Revenue Next 3Y24.06%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CEQP is valuated quite expensively with a Price/Earnings ratio of 30.39.
Compared to the rest of the industry, the Price/Earnings ratio of CEQP indicates a slightly more expensive valuation: CEQP is more expensive than 76.47% of the companies listed in the same industry.
CEQP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.20.
Based on the Price/Forward Earnings ratio of 16.12, the valuation of CEQP can be described as correct.
Based on the Price/Forward Earnings ratio, CEQP is valued a bit more expensive than the industry average as 66.52% of the companies are valued more cheaply.
CEQP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.39 | ||
| Fwd PE | 16.12 |
4.2 Price Multiples
CEQP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CEQP is more expensive than 60.63% of the companies in the same industry.
CEQP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.84 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CEQP's earnings are expected to grow with 117.91% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y187.44%
EPS Next 3Y117.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.27%, CEQP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.81, CEQP pays a better dividend. On top of this CEQP pays more dividend than 83.71% of the companies listed in the same industry.
CEQP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.27% |
5.2 History
The dividend of CEQP is nicely growing with an annual growth rate of 8.30%!
CEQP has paid a dividend for at least 10 years, which is a reliable track record.
CEQP has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.3%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
327.84% of the earnings are spent on dividend by CEQP. This is not a sustainable payout ratio.
The dividend of CEQP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP327.84%
EPS Next 2Y187.44%
EPS Next 3Y117.91%
28.26
+1.18 (+4.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.19%
Inst Owner Change0%
Ins Owners1.05%
Ins Owner Change0%
Market Cap2.97B
Analysts71.43
Price Target29.33 (3.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.27% |
Yearly Dividend3.88
Dividend Growth(5Y)8.3%
DP327.84%
Div Incr Years1
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)106.63%
Min EPS beat(2)16.71%
Max EPS beat(2)196.55%
EPS beat(4)3
Avg EPS beat(4)-6.32%
Min EPS beat(4)-259.25%
Max EPS beat(4)196.55%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-16.44%
Min Revenue beat(2)-19.34%
Max Revenue beat(2)-13.53%
Revenue beat(4)0
Avg Revenue beat(4)-11.75%
Min Revenue beat(4)-19.34%
Max Revenue beat(4)-5.95%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.88%
PT rev (3m)-4.17%
EPS NQ rev (1m)3.67%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0%
EPS NY rev (3m)41.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.81%
Revenue NY rev (1m)-12.77%
Revenue NY rev (3m)-15.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.39 | ||
| Fwd PE | 16.12 | ||
| P/S | 0.57 | ||
| P/FCF | 15.84 | ||
| P/OCF | 6.54 | ||
| P/B | 1.55 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)0.93
EY3.29%
EPS(NY)1.75
Fwd EY6.2%
FCF(TTM)1.78
FCFY6.31%
OCF(TTM)4.32
OCFY15.3%
SpS49.98
BVpS18.26
TBVpS6.89
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 5.37% | ||
| ROCE | 6.75% | ||
| ROIC | 5.34% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 6.69% | ||
| OM | 7.64% | ||
| PM (TTM) | 1.96% | ||
| GM | 20.02% | ||
| FCFM | 3.57% |
ROA(3y)-1.92%
ROA(5y)-0.36%
ROE(3y)-7.04%
ROE(5y)-2.01%
ROIC(3y)4.49%
ROIC(5y)3.89%
ROICexc(3y)4.5%
ROICexc(5y)3.9%
ROICexgc(3y)5.71%
ROICexgc(5y)4.91%
ROCE(3y)5.69%
ROCE(5y)4.93%
ROICexcg growth 3Y16.02%
ROICexcg growth 5Y23.88%
ROICexc growth 3Y16.17%
ROICexc growth 5Y23.69%
OM growth 3Y0.43%
OM growth 5Y24.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.82%
GM growth 5Y5.1%
F-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 17.41 | ||
| Debt/EBITDA | 4.43 | ||
| Cap/Depr | 79.4% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.61% | ||
| Profit Quality | 181.86% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score6
WACC8.16%
ROIC/WACC0.65
Cap/Depr(3y)58.23%
Cap/Depr(5y)117.68%
Cap/Sales(3y)4.37%
Cap/Sales(5y)7.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)764.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%728.57%
EPS Next Y761.73%
EPS Next 2Y187.44%
EPS Next 3Y117.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.83%
Revenue growth 3Y23.55%
Revenue growth 5Y9.11%
Sales Q2Q%-29.48%
Revenue Next Year35.68%
Revenue Next 2Y16%
Revenue Next 3Y24.06%
Revenue Next 5YN/A
EBIT growth 1Y38.99%
EBIT growth 3Y24.07%
EBIT growth 5Y35.9%
EBIT Next Year167.37%
EBIT Next 3Y44.84%
EBIT Next 5Y29.27%
FCF growth 1Y-60.26%
FCF growth 3YN/A
FCF growth 5Y25.47%
OCF growth 1Y-12.33%
OCF growth 3Y1.47%
OCF growth 5Y11.41%