DELEK LOGISTICS PARTNERS LP (DKL)
US24664T1034
We assign a fundamental rating of 3 out of 10 to DKL. DKL was compared to 214 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 has a correct valuation and a medium growth rate. DKL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DKL had positive earnings in the past year.
DKL had a positive operating cash flow in the past year.
DKL had positive earnings in each of the past 5 years.
Each year in the past 5 years DKL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DKL (7.69%) is comparable to the rest of the industry.
DKL's Return On Invested Capital of 12.85% is fine compared to the rest of the industry. DKL outperforms 69.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DKL is significantly below the industry average of 44.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.69% | ||
| ROE | N/A | ||
| ROIC | 12.85% |
ROA(3y)11.59%
ROA(5y)11.61%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.78%
ROIC(5y)14.13%
1.3 Margins
DKL has a Profit Margin (12.37%) which is comparable to the rest of the industry.
DKL's Profit Margin has improved in the last couple of years.
DKL has a Operating Margin of 24.74%. This is comparable to the rest of the industry: DKL outperforms 49.07% of its industry peers.
DKL's Operating Margin has improved in the last couple of years.
DKL has a worse Gross Margin (27.93%) than 64.02% of its industry peers.
DKL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.74% | ||
| PM (TTM) | 12.37% | ||
| GM | 27.93% |
OM growth 3Y-8.11%
OM growth 5Y4.6%
PM growth 3Y-20.84%
PM growth 5Y4.72%
GM growth 3Y-8.69%
GM growth 5Y3.88%
2. Health
2.1 Basic Checks
DKL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DKL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, DKL has more shares outstanding
Compared to 1 year ago, DKL has a worse debt to assets ratio.
2.2 Solvency
DKL has a debt to FCF ratio of 13.63. This is a negative value and a sign of low solvency as DKL would need 13.63 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.63, DKL is doing worse than 62.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.63 | ||
| Altman-Z | N/A |
ROIC/WACC1.61
WACC7.96%
2.3 Liquidity
A Current Ratio of 0.84 indicates that DKL may have some problems paying its short term obligations.
DKL has a Current ratio of 0.84. This is in the lower half of the industry: DKL underperforms 71.96% of its industry peers.
A Quick Ratio of 0.82 indicates that DKL may have some problems paying its short term obligations.
DKL has a Quick ratio of 0.82. This is in the lower half of the industry: DKL underperforms 64.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for DKL have decreased strongly by -20.77% in the last year.
Measured over the past 5 years, DKL shows a small growth in Earnings Per Share. The EPS has been growing by 1.90% on average per year.
The Revenue has decreased by -1.56% in the past year.
Measured over the past years, DKL shows a quite strong growth in Revenue. The Revenue has been growing by 9.18% on average per year.
EPS 1Y (TTM)-20.77%
EPS 3Y-11.19%
EPS 5Y1.9%
EPS growth Q2Q-47.96%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y21.9%
Revenue growth 5Y9.18%
Revenue growth Q2Q-5.56%
3.2 Future
The Earnings Per Share is expected to grow by 19.69% on average over the next years. This is quite good.
Based on estimates for the next years, DKL will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y29.89%
EPS Next 2Y21.93%
EPS Next 3Y19.69%
EPS Next 5YN/A
Revenue Next Year0.19%
Revenue Next 2Y1.04%
Revenue Next 3Y2.13%
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
With a Price/Earnings ratio of 13.72, DKL is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of DKL indicates a slightly more expensive valuation: DKL is more expensive than 60.28% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.67. DKL is valued slightly cheaper when compared to this.
DKL is valuated reasonably with a Price/Forward Earnings ratio of 10.56.
Based on the Price/Forward Earnings ratio, DKL is valued a bit cheaper than the industry average as 61.68% of the companies are valued more expensively.
DKL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DKL indicates a slightly more expensive valuation: DKL is more expensive than 66.36% of the companies listed in the same industry.
DKL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 10.12 |
4.3 Compensation for Growth
DKL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DKL's earnings are expected to grow with 19.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)7.23
EPS Next 2Y21.93%
EPS Next 3Y19.69%
5. Dividend
5.1 Amount
DKL has a Yearly Dividend Yield of 10.73%, which is a nice return.
DKL's Dividend Yield is rather good when compared to the industry average which is at 5.73. DKL pays more dividend than 91.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, DKL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.73% |
5.2 History
The dividend of DKL is nicely growing with an annual growth rate of 6.33%!
DKL has been paying a dividend for at least 10 years, so it has 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)6.33%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
142.60% of the earnings are spent on dividend by DKL. This is not a sustainable payout ratio.
DKL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP142.6%
EPS Next 2Y21.93%
EPS Next 3Y19.69%
DELEK LOGISTICS PARTNERS LP
NYSE:DKL (5/1/2024, 1:04:35 PM)
39.785
+0.29 (+0.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 10.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.46
PEG (5Y)7.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.69% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.74% | ||
| PM (TTM) | 12.37% | ||
| GM | 27.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.77%
EPS 3Y-11.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y21.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y