DCP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. DCP has a bad profitability rating. Also its financial health evaluation is rather negative. DCP has a correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

DCP had positive earnings in the past year.
In the past year DCP had a positive cash flow from operations.

1.2 Ratios

Looking at the Return On Assets, with a value of 8.71%, DCP is in line with its industry, outperforming 45.29% of the companies in the same industry.
DCP has a Return On Equity (18.32%) which is in line with its industry peers.
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 21.94%.
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

DCP's Profit Margin of 7.82% is on the low side compared to the rest of the industry. DCP is outperformed by 67.26% of its industry peers.
In the last couple of years the Profit Margin of DCP has grown nicely.
The Operating Margin of DCP (5.99%) is worse than 75.78% of its industry peers.
DCP's Operating Margin has improved in the last couple of years.
DCP has a Gross Margin of 16.04%. This is in the lower half of the industry: DCP underperforms 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DCP is destroying value.
DCP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, DCP has an improved debt to assets ratio.

2.2 Solvency

DCP has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as DCP would need 3.21 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.21, DCP perfoms like the industry average, outperforming 56.50% of the companies in the same industry.
DCP has a Debt/Equity ratio of 0.80. This is a neutral value indicating DCP is somewhat dependend on debt financing.
DCP's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. DCP is outperformed by 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.
Looking at the Current ratio, with a value of 0.91, DCP is doing worse than 67.26% of the companies in the same industry.
DCP has a Quick 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 Quick ratio value of 0.89, DCP is not doing good in the industry: 60.09% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.91
Quick Ratio	0.89

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
The Revenue has grown by 21.93% in the past year. This is a very strong growth!
Measured over the past years, DCP shows a quite strong growth in Revenue. The Revenue has been growing by 12.12% on average per year.

EPS 1Y (TTM)213.37%

EPS 3Y96.72%

EPS 5Y44.09%

EPS Q2Q%209.37%

Revenue 1Y (TTM)21.93%

Revenue growth 3Y25.28%

Revenue growth 5Y12.12%

Sales Q2Q%-19.23%

3.2 Future

The Earnings Per Share is expected to decrease by -1.00% on average over the next years.
The Revenue is expected to decrease by -7.27% on average over the next years.

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.73, which indicates a rather cheap valuation of DCP.
DCP's Price/Earnings is on the same level as the industry average.
DCP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 9.67 indicates a reasonable valuation of DCP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCP is on the same level as its industry peers.
DCP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	7.73
Fwd PE	9.67

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DCP is valued a bit more expensive than the industry average as 70.85% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, DCP is valued a bit cheaper than 64.13% of the companies 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%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.13%, DCP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.73, DCP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.81, DCP pays a better dividend.

		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%

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DCP Midstream LP / DCP FAQ

What is the ChartMill fundamental rating of DCP Midstream LP (DCP) stock?

ChartMill assigns a fundamental rating of 3 / 10 to DCP.

Can you provide the valuation status for DCP Midstream LP?

ChartMill assigns a valuation rating of 5 / 10 to DCP Midstream LP (DCP). This can be considered as Fairly Valued.

How profitable is DCP Midstream LP (DCP) stock?

DCP Midstream LP (DCP) has a profitability rating of 2 / 10.

What is the expected EPS growth for DCP Midstream LP (DCP) stock?

The Earnings per Share (EPS) of DCP Midstream LP (DCP) is expected to decline by -6.49% in the next year.

Is the dividend of DCP Midstream LP sustainable?

The dividend rating of DCP Midstream LP (DCP) is 6 / 10 and the dividend payout ratio is 36.54%.