Crestwood Equity Partners LP New (CEQP) Stock Fundamental Analysis
NYSE:CEQP - New York Stock Exchange, Inc. - US2263442087 - Currency: USD
We assign a fundamental rating of 4 out of 10 to CEQP. CEQP was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of CEQP have multiple concerns. CEQP has a decent growth rate and is not valued too expensively. CEQP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CEQP had positive earnings in the past year.
In the past year CEQP had a positive cash flow from operations.
CEQP had negative earnings in 4 of the past 5 years.
CEQP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CEQP has a Return On Assets of 1.63%. This is in the lower half of the industry: CEQP underperforms 74.21% of its industry peers.
The Return On Equity of CEQP (5.37%) is worse than 71.49% of its industry peers.
CEQP has a worse Return On Invested Capital (5.34%) than 71.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CEQP is significantly below the industry average of 25.76%.
The last Return On Invested Capital (5.34%) for CEQP is above the 3 year average (4.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 5.37% | ||
| ROIC | 5.34% |
ROA(3y)-1.92%
ROA(5y)-0.36%
ROE(3y)-7.04%
ROE(5y)-2.01%
ROIC(3y)4.49%
ROIC(5y)3.89%
1.3 Margins
CEQP has a Profit Margin of 1.96%. This is in the lower half of the industry: CEQP underperforms 75.57% of its industry peers.
CEQP's Operating Margin of 7.64% is on the low side compared to the rest of the industry. CEQP is outperformed by 74.66% of its industry peers.
CEQP's Operating Margin has improved in the last couple of years.
CEQP's Gross Margin of 20.02% is on the low side compared to the rest of the industry. CEQP is outperformed by 71.49% of its industry peers.
CEQP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.64% | ||
| PM (TTM) | 1.96% | ||
| GM | 20.02% |
OM growth 3Y0.43%
OM growth 5Y24.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.82%
GM growth 5Y5.1%
2. Health
2.1 Basic Checks
CEQP 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 CEQP has been increased compared to 1 year ago.
The debt/assets ratio for CEQP is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of CEQP is 17.41, which is on the high side as it means it would take CEQP, 17.41 years of fcf income to pay off all of its debts.
CEQP has a Debt to FCF ratio of 17.41. This is in the lower half of the industry: CEQP underperforms 66.06% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that CEQP has dependencies on debt financing.
CEQP has a worse Debt to Equity ratio (1.70) than 80.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 17.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.65
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.37 indicates that CEQP should not have too much problems paying its short term obligations.
The Current ratio of CEQP (1.37) is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that CEQP should not have too much problems paying its short term obligations.
CEQP has a Quick ratio (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
CEQP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 764.29%, which is quite impressive.
CEQP shows a decrease in Revenue. In the last year, the revenue decreased by -6.83%.
The Revenue has been growing by 9.11% on average over the past years. This is quite good.
EPS 1Y (TTM)764.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%728.57%
Revenue 1Y (TTM)-6.83%
Revenue growth 3Y23.55%
Revenue growth 5Y9.11%
Sales Q2Q%-29.48%
3.2 Future
Based on estimates for the next years, CEQP will show a very strong growth in Earnings Per Share. The EPS will grow by 117.91% on average per year.
CEQP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.06% yearly.
EPS Next Y761.73%
EPS Next 2Y187.44%
EPS Next 3Y117.91%
EPS Next 5YN/A
Revenue Next Year35.68%
Revenue Next 2Y16%
Revenue Next 3Y24.06%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.39, the valuation of CEQP can be described as expensive.
CEQP's Price/Earnings ratio is a bit more expensive when compared to the industry. CEQP is more expensive than 76.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. CEQP is around the same levels.
The Price/Forward Earnings ratio is 16.12, which indicates a correct valuation of CEQP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CEQP indicates a slightly more expensive valuation: CEQP is more expensive than 66.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, CEQP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.39 | ||
| Fwd PE | 16.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEQP is valued a bit more expensive than 60.63% of the companies in the same industry.
CEQP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.84 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CEQP's earnings are expected to grow with 117.91% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y187.44%
EPS Next 3Y117.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.27%, CEQP is a good candidate for dividend investing.
CEQP's Dividend Yield is rather good when compared to the industry average which is at 7.32. CEQP pays more dividend than 83.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, CEQP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.27% |
5.2 History
The dividend of CEQP is nicely growing with an annual growth rate of 8.30%!
CEQP has been paying a dividend for at least 10 years, so it has a reliable track record.
CEQP has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.3%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
CEQP pays out 327.84% of its income as dividend. This is not a sustainable payout ratio.
CEQP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP327.84%
EPS Next 2Y187.44%
EPS Next 3Y117.91%
28.26
+1.18 (+4.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.19%
Inst Owner Change0%
Ins Owners1.05%
Ins Owner Change0%
Market Cap2.97B
Analysts71.43
Price Target29.33 (3.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.27% |
Yearly Dividend3.88
Dividend Growth(5Y)8.3%
DP327.84%
Div Incr Years1
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)106.63%
Min EPS beat(2)16.71%
Max EPS beat(2)196.55%
EPS beat(4)3
Avg EPS beat(4)-6.32%
Min EPS beat(4)-259.25%
Max EPS beat(4)196.55%
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)-16.44%
Min Revenue beat(2)-19.34%
Max Revenue beat(2)-13.53%
Revenue beat(4)0
Avg Revenue beat(4)-11.75%
Min Revenue beat(4)-19.34%
Max Revenue beat(4)-5.95%
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)0.88%
PT rev (3m)-4.17%
EPS NQ rev (1m)3.67%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0%
EPS NY rev (3m)41.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.81%
Revenue NY rev (1m)-12.77%
Revenue NY rev (3m)-15.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.39 | ||
| Fwd PE | 16.12 | ||
| P/S | 0.57 | ||
| P/FCF | 15.84 | ||
| P/OCF | 6.54 | ||
| P/B | 1.55 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)0.93
EY3.29%
EPS(NY)1.75
Fwd EY6.2%
FCF(TTM)1.78
FCFY6.31%
OCF(TTM)4.32
OCFY15.3%
SpS49.98
BVpS18.26
TBVpS6.89
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 5.37% | ||
| ROCE | 6.75% | ||
| ROIC | 5.34% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 6.69% | ||
| OM | 7.64% | ||
| PM (TTM) | 1.96% | ||
| GM | 20.02% | ||
| FCFM | 3.57% |
ROA(3y)-1.92%
ROA(5y)-0.36%
ROE(3y)-7.04%
ROE(5y)-2.01%
ROIC(3y)4.49%
ROIC(5y)3.89%
ROICexc(3y)4.5%
ROICexc(5y)3.9%
ROICexgc(3y)5.71%
ROICexgc(5y)4.91%
ROCE(3y)5.69%
ROCE(5y)4.93%
ROICexcg growth 3Y16.02%
ROICexcg growth 5Y23.88%
ROICexc growth 3Y16.17%
ROICexc growth 5Y23.69%
OM growth 3Y0.43%
OM growth 5Y24.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.82%
GM growth 5Y5.1%
F-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 17.41 | ||
| Debt/EBITDA | 4.43 | ||
| Cap/Depr | 79.4% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.61% | ||
| Profit Quality | 181.86% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score6
WACC8.16%
ROIC/WACC0.65
Cap/Depr(3y)58.23%
Cap/Depr(5y)117.68%
Cap/Sales(3y)4.37%
Cap/Sales(5y)7.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)764.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%728.57%
EPS Next Y761.73%
EPS Next 2Y187.44%
EPS Next 3Y117.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.83%
Revenue growth 3Y23.55%
Revenue growth 5Y9.11%
Sales Q2Q%-29.48%
Revenue Next Year35.68%
Revenue Next 2Y16%
Revenue Next 3Y24.06%
Revenue Next 5YN/A
EBIT growth 1Y38.99%
EBIT growth 3Y24.07%
EBIT growth 5Y35.9%
EBIT Next Year167.37%
EBIT Next 3Y44.84%
EBIT Next 5Y29.27%
FCF growth 1Y-60.26%
FCF growth 3YN/A
FCF growth 5Y25.47%
OCF growth 1Y-12.33%
OCF growth 3Y1.47%
OCF growth 5Y11.41%