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DCP Midstream LP (DCP) Stock Fundamental Analysis

USA - NYSE:DCP - US23311P1003

41.69 USD
+0.03 (+0.07%)
Last: 6/14/2023, 8:24:35 PM
41.7 USD
+0.01 (+0.02%)
After Hours: 6/14/2023, 8:24:35 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to DCP. DCP was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. DCP has a medium profitability rating, but doesn't score so well on its financial health evaluation. DCP has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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4

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B

1.2 Ratios

DCP has a Return On Assets (8.71%) which is in line with its industry peers.
With a Return On Equity value of 18.32%, DCP perfoms like the industry average, outperforming 43.05% of the companies in the same 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.
The Average Return On Invested Capital over the past 3 years for DCP is significantly below the industry average of 21.57%.
The 3 year average ROIC (2.96%) for DCP is below the current ROIC(5.90%), indicating increased profibility in the last year.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 15

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.
DCP has a Operating Margin of 5.99%. This is in the lower half of the industry: DCP underperforms 75.78% of its industry peers.
DCP's Operating Margin has improved in the last couple of years.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DCP is destroying value.
Compared to 1 year ago, DCP has about the same amount of shares outstanding.
DCP has a better debt/assets ratio than last year.
DCP Yearly Shares OutstandingDCP Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
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 worse Debt to Equity ratio (0.80) than 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 2015 2016 2017 2018 2019 2020 2021 2022 0 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.
A Quick Ratio of 0.89 indicates that DCP may have some problems paying its short term obligations.
DCP has a worse Quick ratio (0.89) than 60.09% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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5

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

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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4

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5

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 27.02, which is the current average of the S&P500 Index.
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 22.57, DCP is valued rather cheaply.
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

Based on the Enterprise Value to EBITDA ratio, DCP is valued a bit 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 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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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.13%, DCP is a good candidate for dividend investing.
DCP's Dividend Yield is a higher than the industry average which is at 6.16.
DCP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
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.
The dividend of DCP decreased 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.
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%
DCP Yearly Income VS Free CF VS DividendDCP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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 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 2023-05-03/amc
Earnings (Next)N/A N/A
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 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
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
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 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%