DELEK LOGISTICS PARTNERS LP (DKL) Stock Fundamental Analysis
NYSE:DKL - New York Stock Exchange, Inc. - US24664T1034 - Currency: USD
Overall DKL gets a fundamental rating of 5 out of 10. We evaluated DKL against 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 has a correct valuation and a medium growth rate. Finally DKL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DKL was profitable.
In the past year DKL had a positive cash flow from operations.
Each year in the past 5 years DKL has been profitable.
Each year in the past 5 years DKL had a positive operating cash flow.
1.2 Ratios
DKL has a Return On Assets of 6.22%. This is in the better half of the industry: DKL outperforms 66.20% of its industry peers.
DKL's Return On Equity of 153.00% is amongst the best of the industry. DKL outperforms 97.18% of its industry peers.
The Return On Invested Capital of DKL (6.19%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DKL is significantly below the industry average of 25.73%.
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 better Profit Margin (15.88%) than 64.32% of its industry peers.
DKL's Profit Margin has improved in the last couple of years.
DKL has a Operating Margin of 19.19%. This is comparable to the rest of the industry: DKL outperforms 51.64% of its industry peers.
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.
In the last couple of years the Gross Margin of DKL has remained more or less at the same level.
| 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.
DKL has more shares outstanding than it did 1 year ago.
DKL has more shares outstanding than it did 5 years ago.
DKL has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of DKL is 150.66, which is on the high side as it means it would take DKL, 150.66 years of fcf income to pay off all of its debts.
DKL has a Debt to FCF ratio of 150.66. This is comparable to the rest of the industry: DKL outperforms 40.38% 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.
With a Debt to Equity ratio value of 22.02, DKL is not doing good in the industry: 92.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.02 | ||
| Debt/FCF | 150.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC10.11%
2.3 Liquidity
DKL has a Current Ratio of 1.61. This is a normal value and indicates that DKL is financially healthy and should not expect problems in meeting its short term obligations.
DKL's Current ratio of 1.61 is fine compared to the rest of the industry. DKL outperforms 70.42% of its industry peers.
DKL has a Quick Ratio of 1.52. This is a normal value and indicates that DKL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.52, DKL is in the better half of the industry, outperforming 72.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
DKL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.94%.
The Earnings Per Share has been growing slightly by 2.76% on average over the past years.
DKL shows a decrease in Revenue. In the last year, the revenue decreased by -8.79%.
DKL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.00% yearly.
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
DKL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.21% yearly.
Based on estimates for the next years, DKL will show a small growth in Revenue. The Revenue will grow by 1.34% on average per year.
EPS Next Y-18.1%
EPS Next 2Y1.35%
EPS Next 3Y19.21%
EPS Next 5YN/A
Revenue Next Year-2.46%
Revenue Next 2Y0.94%
Revenue Next 3Y1.34%
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 accelerating.
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 14.08, DKL is valued correctly.
DKL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.91, DKL is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.71, which indicates a correct valuation of DKL.
DKL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of DKL to the average of the S&P500 Index (21.77), we can say DKL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
DKL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DKL is more expensive than 64.32% of the companies in the same industry.
DKL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 158.01 | ||
| EV/EBITDA | 15.69 |
4.3 Compensation for Growth
DKL has a very decent profitability rating, which may justify a higher PE ratio.
DKL's earnings are expected to grow with 19.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)5.11
EPS Next 2Y1.35%
EPS Next 3Y19.21%
5. Dividend
5.1 Amount
DKL has a Yearly Dividend Yield of 10.93%, which is a nice return.
Compared to an average industry Dividend Yield of 6.82, DKL pays a better dividend. On top of this DKL pays more dividend than 88.73% 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 | 10.93% |
5.2 History
The dividend of DKL has a limited annual growth rate of 5.08%.
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)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.
DKL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP146.09%
EPS Next 2Y1.35%
EPS Next 3Y19.21%
42.11
+1.02 (+2.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners22.31%
Inst Owner Change-2.32%
Ins Owners0.8%
Ins Owner Change0.17%
Market Cap2.25B
Analysts77.5
Price Target45.65 (8.41%)
Short Float %4.43%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.93% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)29.28%
EPS NY rev (1m)-37.85%
EPS NY rev (3m)8.91%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)3.07%
Revenue NY rev (1m)-10.25%
Revenue NY rev (3m)-7.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.71 | ||
| P/S | 2.4 | ||
| P/FCF | 158.01 | ||
| P/OCF | 11.6 | ||
| P/B | 23.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.69 |
EPS(TTM)2.99
EY7.1%
EPS(NY)3.07
Fwd EY7.29%
FCF(TTM)0.27
FCFY0.63%
OCF(TTM)3.63
OCFY8.62%
SpS17.56
BVpS1.82
TBVpS-5.21
PEG (NY)N/A
PEG (5Y)5.11
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
WACC10.11%
ROIC/WACC0.61
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 Year-2.46%
Revenue Next 2Y0.94%
Revenue Next 3Y1.34%
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%