DCP Midstream LP (DCP) Stock Fundamental Analysis
NYSE:DCP - New York Stock Exchange, Inc. - US23311P1003 - Currency: USD
Taking everything into account, DCP scores 4 out of 10 in our fundamental rating. DCP was compared to 208 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DCP was profitable.
In the past year DCP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DCP reported negative net income in multiple years.
DCP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DCP has a Return On Assets (8.71%) which is comparable to the rest of the industry.
The Return On Equity of DCP (18.32%) is comparable to the rest of the industry.
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 23.52%.
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 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.
DCP's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 16.04%, DCP is doing worse than 74.44% of the companies in the same industry.
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.
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.
DCP's Debt to FCF ratio of 3.21 is in line compared to the rest of the industry. DCP outperforms 56.50% of its industry peers.
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.
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.
DCP has a worse Quick ratio (0.89) than 60.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
DCP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 213.37%, which is quite impressive.
DCP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.09% yearly.
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.
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.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.73, DCP is valued rather cheaply.
DCP is valuated reasonably with a Price/Forward Earnings ratio of 9.67.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.61, DCP is valued rather cheaply.
| 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.
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.
Compared to an average industry Dividend Yield of 6.31, DCP pays a bit more dividend than its industry peers.
DCP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| 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
36.54% of the earnings are spent on dividend by DCP. This is a low number and 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
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%