DCP Midstream LP (DCP) Stock Fundamental Analysis
NYSE:DCP - New York Stock Exchange, Inc. - US23311P1003 - Currency: USD
Taking everything into account, DCP scores 4 out of 10 in our fundamental rating. DCP was compared to 210 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DCP was profitable.
DCP had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of DCP (8.71%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 18.32%, DCP is in line with its industry, 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.
Measured over the past 3 years, the Average Return On Invested Capital for DCP is significantly below the industry average of 28.74%.
The 3 year average ROIC (2.96%) for DCP is below the current ROIC(5.90%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
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.
In the last couple of years the Profit Margin of DCP has grown nicely.
The Operating Margin of DCP (5.99%) is worse than 75.78% of its industry peers.
DCP's Operating Margin has improved in the last couple of years.
DCP has a Gross Margin of 16.04%. This is in the lower half of the industry: DCP underperforms 74.44% of its industry peers.
DCP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DCP is destroying value.
DCP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, DCP has an improved debt to assets ratio.
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.
Looking at the Debt to FCF ratio, with a value of 3.21, DCP is in line with its industry, outperforming 56.50% of the companies in the same industry.
DCP has a Debt/Equity ratio of 0.80. This is a neutral value indicating DCP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, DCP is doing worse than 65.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC8.48%
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 has a Current ratio of 0.91. This is in the lower half of the industry: DCP underperforms 67.26% of its industry peers.
DCP has a Quick 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.
Looking at the Quick ratio, with a value of 0.89, DCP is doing worse than 60.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.89 |
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.
Measured over the past years, DCP shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.09% on average per year.
DCP shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.93%.
The Revenue has been growing by 12.12% on average over the past years. This is quite good.
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.
DCP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.27% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.73 indicates a rather cheap valuation of DCP.
DCP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.62, DCP is valued rather cheaply.
DCP is valuated reasonably with a Price/Forward Earnings ratio of 9.67.
DCP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. DCP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
70.85% of the companies in the same industry are cheaper than DCP, based on the Enterprise Value to EBITDA ratio.
DCP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DCP is cheaper than 64.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.71 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-4.45%
EPS Next 3Y-1%
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 6.67.
DCP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector 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.
DCP has decreased its dividend recently.
Dividend Growth(5Y)-14.55%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
36.54% of the earnings are spent on dividend by DCP. This is a low number and sustainable payout ratio.
DCP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP36.54%
EPS Next 2Y-4.45%
EPS Next 3Y-1%
41.69
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%