DELEK LOGISTICS PARTNERS LP (DKL) Stock Fundamental Analysis
NYSE:DKL - New York Stock Exchange, Inc. - US24664T1034 - Currency: USD
We assign a fundamental rating of 5 out of 10 to DKL. DKL was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While DKL is still in line with the averages on profitability rating, there are concerns on its financial health. DKL is not valued too expensively and it also shows a decent growth rate. DKL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DKL was profitable.
DKL had a positive operating cash flow in the past year.
Each year in the past 5 years DKL has been profitable.
DKL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DKL has a Return On Assets of 6.22%. This is in the better half of the industry: DKL outperforms 67.14% of its industry peers.
DKL has a Return On Equity of 153.00%. This is amongst the best in the industry. DKL outperforms 97.18% of its industry peers.
DKL has a Return On Invested Capital of 6.19%. This is comparable to the rest of the industry: DKL outperforms 53.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DKL is significantly below the industry average of 23.55%.
The 3 year average ROIC (10.52%) for DKL is well above the current ROIC(6.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 153% | ||
| ROIC | 6.19% |
ROA(3y)8.05%
ROA(5y)11.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.52%
ROIC(5y)12.96%
1.3 Margins
DKL has a Profit Margin of 15.88%. This is in the better half of the industry: DKL outperforms 64.79% of its industry peers.
In the last couple of years the Profit Margin of DKL has grown nicely.
With a Operating Margin value of 19.19%, DKL perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
DKL's Operating Margin has been stable in the last couple of years.
DKL's Gross Margin of 24.08% is on the low side compared to the rest of the industry. DKL is outperformed by 63.85% of its industry peers.
DKL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.19% | ||
| PM (TTM) | 15.88% | ||
| GM | 24.08% |
OM growth 3Y-7.56%
OM growth 5Y-0.08%
PM growth 3Y-13.59%
PM growth 5Y6.82%
GM growth 3Y-5.79%
GM growth 5Y0%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DKL is still creating some value.
The number of shares outstanding for DKL has been increased compared to 1 year ago.
DKL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DKL has been reduced compared to a year ago.
2.2 Solvency
DKL has a debt to FCF ratio of 150.66. This is a negative value and a sign of low solvency as DKL would need 150.66 years to pay back of all of its debts.
DKL has a Debt to FCF ratio of 150.66. This is in the lower half of the industry: DKL underperforms 60.56% of its industry peers.
DKL has a Debt/Equity ratio of 22.02. This is a high value indicating a heavy dependency on external financing.
DKL has a Debt to Equity ratio of 22.02. This is amonst the worse of the industry: DKL underperforms 92.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.02 | ||
| Debt/FCF | 150.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC7.33%
2.3 Liquidity
A Current Ratio of 1.61 indicates that DKL should not have too much problems paying its short term obligations.
The Current ratio of DKL (1.61) is better than 69.95% of its industry peers.
A Quick Ratio of 1.52 indicates that DKL should not have too much problems paying its short term obligations.
DKL has a better Quick ratio (1.52) than 72.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.94% over the past year.
The Earnings Per Share has been growing slightly by 2.76% on average over the past years.
The Revenue has decreased by -8.79% in the past year.
The Revenue has been growing by 10.00% on average over the past years. This is quite good.
EPS 1Y (TTM)7.94%
EPS 3Y-7.6%
EPS 5Y2.76%
EPS Q2Q%0%
Revenue 1Y (TTM)-8.79%
Revenue growth 3Y10.3%
Revenue growth 5Y10%
Sales Q2Q%-0.85%
3.2 Future
The Earnings Per Share is expected to grow by 19.21% on average over the next years. This is quite good.
DKL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.37% yearly.
EPS Next Y-18.1%
EPS Next 2Y1.35%
EPS Next 3Y19.21%
EPS Next 5YN/A
Revenue Next Year13.66%
Revenue Next 2Y4.1%
Revenue Next 3Y3.37%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 14.35 indicates a correct valuation of DKL.
Compared to the rest of the industry, the Price/Earnings ratio of DKL is on the same level as its industry peers.
DKL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
DKL is valuated correctly with a Price/Forward Earnings ratio of 13.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DKL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.19. DKL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DKL is valued a bit more expensive than 65.26% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DKL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.97 | ||
| EV/EBITDA | 15.84 |
4.3 Compensation for Growth
The decent profitability rating of DKL may justify a higher PE ratio.
A more expensive valuation may be justified as DKL's earnings are expected to grow with 19.21% in the coming years.
PEG (NY)N/A
PEG (5Y)5.21
EPS Next 2Y1.35%
EPS Next 3Y19.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.25%, DKL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.54, DKL pays a better dividend. On top of this DKL pays more dividend than 88.26% of the companies listed in the same industry.
DKL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.25% |
5.2 History
The dividend of DKL has a limited annual growth rate of 5.08%.
DKL has paid a dividend for at least 10 years, which is a reliable track record.
DKL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.08%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
146.09% of the earnings are spent on dividend by DKL. This is not a sustainable payout ratio.
The dividend of DKL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP146.09%
EPS Next 2Y1.35%
EPS Next 3Y19.21%
42.9
-0.82 (-1.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners21.93%
Inst Owner Change-2.32%
Ins Owners0.82%
Ins Owner Change0.24%
Market Cap2.29B
Analysts77.14
Price Target43.86 (2.24%)
Short Float %3.89%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.25% |
Yearly Dividend4.3
Dividend Growth(5Y)5.08%
DP146.09%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.04%
Min EPS beat(2)-10.66%
Max EPS beat(2)-1.42%
EPS beat(4)1
Avg EPS beat(4)-5.87%
Min EPS beat(4)-16.08%
Max EPS beat(4)4.66%
EPS beat(8)2
Avg EPS beat(8)-11.07%
EPS beat(12)2
Avg EPS beat(12)-13.29%
EPS beat(16)2
Avg EPS beat(16)-10.97%
Revenue beat(2)1
Avg Revenue beat(2)-3.59%
Min Revenue beat(2)-13.44%
Max Revenue beat(2)6.26%
Revenue beat(4)2
Avg Revenue beat(4)-6.35%
Min Revenue beat(4)-19.73%
Max Revenue beat(4)6.26%
Revenue beat(8)3
Avg Revenue beat(8)-5.9%
Revenue beat(12)4
Avg Revenue beat(12)-4.24%
Revenue beat(16)8
Avg Revenue beat(16)1.07%
PT rev (1m)-3.91%
PT rev (3m)-3.91%
EPS NQ rev (1m)11.14%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)0%
EPS NY rev (3m)8.91%
Revenue NQ rev (1m)19.39%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)16.53%
Revenue NY rev (3m)6.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 13.97 | ||
| P/S | 2.44 | ||
| P/FCF | 160.97 | ||
| P/OCF | 11.82 | ||
| P/B | 23.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.84 |
EPS(TTM)2.99
EY6.97%
EPS(NY)3.07
Fwd EY7.16%
FCF(TTM)0.27
FCFY0.62%
OCF(TTM)3.63
OCFY8.46%
SpS17.56
BVpS1.82
TBVpS-5.21
PEG (NY)N/A
PEG (5Y)5.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 153% | ||
| ROCE | 7.84% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.2% | ||
| ROICexgc | 7.41% | ||
| OM | 19.19% | ||
| PM (TTM) | 15.88% | ||
| GM | 24.08% | ||
| FCFM | 1.52% |
ROA(3y)8.05%
ROA(5y)11.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.52%
ROIC(5y)12.96%
ROICexc(3y)10.55%
ROICexc(5y)13.01%
ROICexgc(3y)13.49%
ROICexgc(5y)16.38%
ROCE(3y)13.31%
ROCE(5y)16.4%
ROICexcg growth 3Y-24.63%
ROICexcg growth 5Y-11.47%
ROICexc growth 3Y-23.14%
ROICexc growth 5Y-10.33%
OM growth 3Y-7.56%
OM growth 5Y-0.08%
PM growth 3Y-13.59%
PM growth 5Y6.82%
GM growth 3Y-5.79%
GM growth 5Y0%
F-Score4
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.02 | ||
| Debt/FCF | 150.66 | ||
| Debt/EBITDA | 7.66 | ||
| Cap/Depr | 179.79% | ||
| Cap/Sales | 19.16% | ||
| Interest Coverage | 1.26 | ||
| Cash Conversion | 69.28% | ||
| Profit Quality | 9.55% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | N/A |
F-Score4
WACC7.33%
ROIC/WACC0.84
Cap/Depr(3y)146.92%
Cap/Depr(5y)103.95%
Cap/Sales(3y)12.67%
Cap/Sales(5y)8.76%
Profit Quality(3y)59.95%
Profit Quality(5y)92.03%
High Growth Momentum
Growth
EPS 1Y (TTM)7.94%
EPS 3Y-7.6%
EPS 5Y2.76%
EPS Q2Q%0%
EPS Next Y-18.1%
EPS Next 2Y1.35%
EPS Next 3Y19.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.79%
Revenue growth 3Y10.3%
Revenue growth 5Y10%
Sales Q2Q%-0.85%
Revenue Next Year13.66%
Revenue Next 2Y4.1%
Revenue Next 3Y3.37%
Revenue Next 5YN/A
EBIT growth 1Y-28.98%
EBIT growth 3Y1.97%
EBIT growth 5Y9.92%
EBIT Next Year107.25%
EBIT Next 3Y33.17%
EBIT Next 5YN/A
FCF growth 1Y24.93%
FCF growth 3Y-33.3%
FCF growth 5Y-9.28%
OCF growth 1Y11.83%
OCF growth 3Y-9.15%
OCF growth 5Y9.61%