DCP Midstream LP (DCP) Stock Fundamental Analysis
USA - NYSE:DCP - US23311P1003
41.69 USD
+0.03 (+0.07%)
41.7 USD
+0.01 (+0.02%)
DCP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of DCP while its profitability can be described as average. 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.
DCP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DCP's Return On Assets of 8.71% is in line compared to the rest of the industry. DCP outperforms 45.29% of its industry peers.
DCP has a Return On Equity (18.32%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.90%, DCP is doing worse than 69.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DCP is significantly below the industry average of 21.72%.
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
Looking at the Profit Margin, with a value of 7.82%, DCP is doing worse than 67.26% of the companies in the same industry.
In the last couple of years the Profit Margin of DCP has grown nicely.
With a Operating Margin value of 5.99%, DCP is not doing good in the industry: 75.78% of the companies in the same industry are doing better.
DCP's Operating Margin has improved in the last couple of years.
The Gross Margin of DCP (16.04%) is worse 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.
The number of shares outstanding for DCP remains at a similar level compared to 1 year ago.
DCP has a better debt/assets ratio than last year.
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.
DCP has a Debt to FCF ratio (3.21) which is comparable to the rest of the industry.
DCP has a Debt/Equity ratio of 0.80. This is a neutral value indicating DCP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, DCP is doing worse than 65.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC8.48%
2.3 Liquidity
A Current Ratio of 0.91 indicates that DCP may have some problems paying its short term obligations.
The Current ratio of DCP (0.91) is worse than 67.26% of its industry peers.
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 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 213.37% over the past year.
The Earnings Per Share has been growing by 44.09% on average over the past years. This is a very strong growth
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
DCP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.00% yearly.
Based on estimates for the next years, DCP will show a decrease in Revenue. The Revenue will decrease by -7.27% on average per year.
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
With a Price/Earnings ratio of 7.73, the valuation of DCP can be described as very cheap.
DCP's Price/Earnings is on the same level as the industry average.
DCP is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
DCP is valuated reasonably with a Price/Forward Earnings ratio of 9.67.
DCP's Price/Forward Earnings ratio is in line with the industry average.
DCP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| 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.
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%
5. Dividend
5.1 Amount
DCP has a Yearly Dividend Yield of 4.13%, which is a nice return.
DCP's Dividend Yield is a higher than the industry average which is at 5.87.
DCP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| 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.
The Dividend Rate of DCP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP36.54%
EPS Next 2Y-4.45%
EPS Next 3Y-1%
41.69
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.96%
Inst Owner ChangeN/A
Ins Owners56.47%
Ins Owner Change0%
Market Cap8.70B
Revenue(TTM)14.34B
Net Income(TTM)1.12B
Analysts51.43
Price Target41.92 (0.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Yearly Dividend1.92
Dividend Growth(5Y)-14.55%
DP36.54%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.27%
Min EPS beat(2)-9.8%
Max EPS beat(2)10.34%
EPS beat(4)3
Avg EPS beat(4)21.82%
Min EPS beat(4)-9.8%
Max EPS beat(4)54.93%
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)-29.16%
Min Revenue beat(2)-33.29%
Max Revenue beat(2)-25.03%
Revenue beat(4)0
Avg Revenue beat(4)-22.34%
Min Revenue beat(4)-33.29%
Max Revenue beat(4)-5.91%
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%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 9.67 | ||
| P/S | 0.61 | ||
| P/FCF | 5.71 | ||
| P/OCF | 4.76 | ||
| P/B | 1.42 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)5.39
EY12.93%
EPS(NY)4.31
Fwd EY10.34%
FCF(TTM)7.3
FCFY17.52%
OCF(TTM)8.76
OCFY21.01%
SpS68.74
BVpS29.35
TBVpS29.19
PEG (NY)N/A
PEG (5Y)0.18
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 18.32% | ||
| ROCE | N/A | ||
| ROIC | 5.9% | ||
| ROICexc | 5.9% | ||
| ROICexgc | 5.92% | ||
| OM | 5.99% | ||
| PM (TTM) | 7.82% | ||
| GM | 16.04% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.96%
ROIC(5y)2.49%
ROICexc(3y)2.96%
ROICexc(5y)2.49%
ROICexgc(3y)2.97%
ROICexgc(5y)2.51%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y63.4%
ROICexgc growth 5Y27.83%
ROICexc growth 3Y64.22%
ROICexc growth 5Y28.47%
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%
F-Score7
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 84.44% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 135.83% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | N/A |
F-Score7
WACC8.48%
ROIC/WACC0.7
Cap/Depr(3y)46.85%
Cap/Depr(5y)84.47%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)213.37%
EPS 3Y96.72%
EPS 5Y44.09%
EPS Q2Q%209.37%
EPS Next Y-6.49%
EPS Next 2Y-4.45%
EPS Next 3Y-1%
EPS Next 5YN/A
Revenue 1Y (TTM)21.93%
Revenue growth 3Y25.28%
Revenue growth 5Y12.12%
Sales Q2Q%-19.23%
Revenue Next Year-11.8%
Revenue Next 2Y-7.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y327.36%
EBIT growth 3Y57.25%
EBIT growth 5Y25.37%
EBIT Next Year145.03%
EBIT Next 3Y32.45%
EBIT Next 5Y19.76%
FCF growth 1Y125.44%
FCF growth 3Y68.82%
FCF growth 5Y25.72%
OCF growth 1Y134.06%
OCF growth 3Y29.88%
OCF growth 5Y16%
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.
What is the valuation status of DCP Midstream LP (DCP) stock?
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.
How financially healthy is DCP Midstream LP?
The financial health rating of DCP Midstream LP (DCP) is 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.