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%)
Taking everything into account, DCP scores 4 out of 10 in our fundamental rating. DCP was compared to 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.
Each year in the past 5 years DCP had a positive operating cash flow.
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 of 18.32%. This is comparable to the rest of the industry: DCP outperforms 43.05% of its industry peers.
DCP has a Return On Invested Capital of 5.90%. This is in the lower half of the industry: DCP underperforms 69.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCP is significantly below the industry average of 21.91%.
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 has a worse Profit Margin (7.82%) than 67.26% of its industry peers.
In the last couple of years the Profit Margin of DCP has grown nicely.
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.
In the last couple of years the Operating Margin of DCP has grown nicely.
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.
DCP's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DCP is destroying value.
The number of shares outstanding for DCP remains at a similar level compared to 1 year ago.
Compared to 1 year ago, DCP has an improved debt to assets ratio.
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.
The Debt to FCF ratio of DCP (3.21) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.80 indicates that DCP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, DCP is not doing good in the industry: 65.92% of the companies in the same industry are doing better.
| 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.
The Current ratio of DCP (0.91) is worse than 67.26% of its industry peers.
A Quick Ratio of 0.89 indicates that DCP may have some problems paying its short term obligations.
DCP's Quick ratio of 0.89 is on the low side compared to the rest of the industry. DCP is outperformed by 60.09% of its industry peers.
| 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.
Measured over the past years, DCP shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.09% on average per year.
DCP shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.93%.
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
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.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.73, the valuation of DCP can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of DCP is on the same level as its industry peers.
DCP is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.67, the valuation of DCP can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCP is on the same level as its industry peers.
DCP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
DCP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DCP is more expensive than 70.85% of the companies in the same industry.
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 6.00.
DCP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| 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%
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
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
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
ROICexcg growth 3Y63.4%
ROICexcg 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%