DCP Midstream LP (DCP) Fundamental Analysis & Valuation

NYSE:DCP • US23311P1003

Current stock price

41.69 USD
+0.03 (+0.07%)
At close:
41.7 USD
+0.01 (+0.02%)
After Hours:

This DCP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. DCP Profitability Analysis

1.1 Basic Checks

  • In the past year DCP was profitable.
  • DCP had a positive operating cash flow in the past year.
DCP Yearly Net Income VS EBIT VS OCF VS FCFDCP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B

1.2 Ratios

  • DCP has a Return On Assets of 8.71%. This is comparable 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.
  • 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.
  • DCP had an Average Return On Invested Capital over the past 3 years of 2.96%. This is significantly below the industry average of 23.10%.
  • The last Return On Invested Capital (5.90%) for DCP is above the 3 year average (2.96%), which is a sign of increasing profitability.
Industry RankSector 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%
DCP Yearly ROA, ROE, ROICDCP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 15

1.3 Margins

  • DCP has a Profit Margin of 7.82%. This is in the lower half of the industry: DCP underperforms 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.
  • In the last couple of years the Operating Margin of DCP has grown nicely.
  • DCP's Gross Margin of 16.04% is on the low side compared to the rest of the industry. DCP is outperformed by 74.44% of its industry peers.
  • In the last couple of years the Gross Margin of DCP has declined.
Industry RankSector 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%
DCP Yearly Profit, Operating, Gross MarginsDCP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20

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2

2. DCP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DCP is destroying value.
  • Compared to 1 year ago, DCP has about the same amount of shares outstanding.
  • Compared to 1 year ago, DCP has an improved debt to assets ratio.
DCP Yearly Shares OutstandingDCP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M
DCP Yearly Total Debt VS Total AssetsDCP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 5B 10B

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.
  • Looking at the Debt to FCF ratio, with a value of 3.21, DCP is in line with its industry, outperforming 56.50% of the companies in the same 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 RankSector Rank
Debt/Equity 0.8
Debt/FCF 3.21
Altman-Z N/A
ROIC/WACC0.7
WACC8.48%
DCP Yearly LT Debt VS Equity VS FCFDCP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B

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.
  • DCP's Current ratio of 0.91 is on the low side compared to the rest of the industry. DCP is outperformed by 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.
  • 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 RankSector Rank
Current Ratio 0.91
Quick Ratio 0.89
DCP Yearly Current Assets VS Current LiabilitesDCP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. DCP Growth Analysis

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.
  • 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 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.
DCP Yearly Revenue VS EstimatesDCP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B
DCP Yearly EPS VS EstimatesDCP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4

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5

4. DCP Valuation Analysis

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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, DCP is valued rather cheaply.
  • A Price/Forward Earnings ratio of 9.67 indicates a reasonable valuation of DCP.
  • The rest of the industry has a similar Price/Forward Earnings ratio as DCP.
  • The average S&P500 Price/Forward Earnings ratio is at 23.68. DCP is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.73
Fwd PE 9.67
DCP Price Earnings VS Forward Price EarningsDCP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DCP indicates a slightly more expensive valuation: DCP is more expensive than 70.85% of the companies listed 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 RankSector Rank
P/FCF 5.71
EV/EBITDA 11.15
DCP Per share dataDCP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. DCP Dividend Analysis

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 3.16.
  • DCP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector 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.
  • DCP has decreased its dividend recently.
Dividend Growth(5Y)-14.55%
Div Incr Years1
Div Non Decr Years1
DCP Yearly Dividends per shareDCP Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 1 2 3

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 Yearly Income VS Free CF VS DividendDCP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B
DCP Dividend Payout.DCP Dividend Payout, showing the Payout Ratio.DCP Dividend Payout.PayoutRetained Earnings

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DCP Fundamentals: All Metrics, Ratios and Statistics

DCP Midstream LP

NYSE:DCP (6/14/2023, 8:24:35 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)05-03
Earnings (Next)N/A
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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.


Can you provide the profitability details for DCP Midstream LP?

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


What is the valuation of DCP Midstream LP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for DCP Midstream LP (DCP) is 7.73 and the Price/Book (PB) ratio is 1.42.


Can you provide the financial health for DCP stock?

The financial health rating of DCP Midstream LP (DCP) is 2 / 10.