DCP Midstream LP (DCP)
US23311P1003
We assign a fundamental rating of 4 out of 10 to DCP. DCP was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While DCP is still in line with the averages on profitability rating, there are concerns on its financial health. DCP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DCP had positive earnings in the past year.
DCP had a positive operating cash flow in the past year.
In multiple years DCP reported negative net income over the last 5 years.
In the past 5 years DCP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 8.71%, DCP perfoms like the industry average, outperforming 45.29% of the companies in the same industry.
The Return On Equity of DCP (18.32%) is comparable to the rest of the industry.
DCP has a worse Return On Invested Capital (5.90%) than 69.96% of its industry peers.
DCP had an Average Return On Invested Capital over the past 3 years of 2.96%. This is significantly below the industry average of 44.55%.
The 3 year average ROIC (2.96%) for DCP is below the current ROIC(5.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 18.32% | ||
| ROIC | 5.9% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.96%
ROIC(5y)2.49%
1.3 Margins
With a Profit Margin value of 7.82%, DCP is not doing good in the industry: 67.26% of the companies in the same industry are doing better.
DCP's Profit Margin has improved in the last couple of years.
DCP's Operating Margin of 5.99% is on the low side compared to the rest of the industry. DCP is outperformed by 75.78% of its industry peers.
DCP's Operating Margin has improved in the last couple of years.
DCP has a worse Gross Margin (16.04%) than 74.44% of its industry peers.
In the last couple of years the Gross Margin of DCP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 7.82% | ||
| GM | 16.04% |
OM growth 3Y25.52%
OM growth 5Y11.82%
PM growth 3YN/A
PM growth 5Y55.48%
GM growth 3Y-12.03%
GM growth 5Y-5.14%
2. Health
2.1 Basic Checks
DCP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DCP has about the same amount of shares outstanding.
Compared to 5 years ago, DCP has more shares outstanding
The debt/assets ratio for DCP has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of DCP is 3.21, which is a good value as it means it would take DCP, 3.21 years of fcf income to pay off all of its debts.
DCP has a Debt to FCF ratio (3.21) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.80 indicates that DCP is somewhat dependend on debt financing.
DCP has a Debt to Equity ratio of 0.80. This is in the lower half of the industry: DCP underperforms 65.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC8.48%
2.3 Liquidity
DCP has a Current Ratio of 0.91. This is a bad value and indicates that DCP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.91, DCP is not doing good in the industry: 67.26% of the companies in the same industry are doing better.
A Quick Ratio of 0.89 indicates that DCP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, DCP is doing worse than 60.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 213.37% over the past year.
DCP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.09% yearly.
Looking at the last year, DCP shows a very strong growth in Revenue. The Revenue has grown by 21.93%.
The Revenue has been growing by 12.12% on average over the past years. This is quite good.
EPS 1Y (TTM)213.37%
EPS 3Y96.72%
EPS 5Y44.09%
EPS growth Q2Q209.37%
Revenue 1Y (TTM)21.93%
Revenue growth 3Y25.28%
Revenue growth 5Y12.12%
Revenue growth Q2Q-19.23%
3.2 Future
Based on estimates for the next years, DCP will show a decrease in Earnings Per Share. The EPS will decrease by -1.00% on average per year.
DCP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.27% yearly.
EPS Next Y-6.49%
EPS Next 2Y-4.45%
EPS Next 3Y-1%
EPS Next 5YN/A
Revenue Next Year-11.8%
Revenue Next 2Y-7.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DCP is valuated cheaply with a Price/Earnings ratio of 7.73.
Compared to the rest of the industry, the Price/Earnings ratio of DCP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.28. DCP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.67, the valuation of DCP can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as DCP.
The average S&P500 Price/Forward Earnings ratio is at 20.88. DCP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
70.85% of the companies in the same industry are cheaper than DCP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCP indicates a somewhat cheap valuation: DCP is cheaper than 64.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.71 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-4.45%
EPS Next 3Y-1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.13%, DCP is a good candidate for dividend investing.
DCP's Dividend Yield is a higher than the industry average which is at 5.85.
DCP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
5.2 History
The dividend of DCP decreases each year by -14.55%.
DCP has been paying a dividend for over 5 years, so it has already some track record.
The dividend of DCP decreased recently.
Dividend Growth(5Y)-14.55%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DCP pays out 36.54% of its income as dividend. This is a sustainable payout ratio.
DCP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP36.54%
EPS Next 2Y-4.45%
EPS Next 3Y-1%
DCP Midstream LP
NYSE:DCP (6/14/2023, 7:24:35 PM)
After market: 41.7 +0.01 (+0.02%)41.69
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 9.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 18.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.99% | ||
| PM (TTM) | 7.82% | ||
| GM | 16.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)213.37%
EPS 3Y96.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.93%
Revenue growth 3Y25.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y