DELEK LOGISTICS PARTNERS LP (DKL) Stock Fundamental Analysis
NYSE:DKL - New York Stock Exchange, Inc. - US24664T1034 - Currency: USD
DKL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. DKL has a medium profitability rating, but doesn't score so well on its financial health evaluation. DKL is not valued too expensively and it also shows a decent 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.
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 (6.22%) is better than 66.82% of its industry peers.
DKL has a Return On Equity of 153.00%. This is amongst the best in the industry. DKL outperforms 97.16% of its industry peers.
The Return On Invested Capital of DKL (6.19%) is comparable to the rest of the industry.
DKL had an Average Return On Invested Capital over the past 3 years of 10.52%. This is significantly below the industry average of 23.70%.
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
The Profit Margin of DKL (15.88%) is better than 64.93% of its industry peers.
In the last couple of years the Profit Margin of DKL has grown nicely.
DKL has a Operating Margin (19.19%) which is in line with its industry peers.
DKL's Operating Margin has been stable in the last couple of years.
DKL has a worse Gross Margin (24.08%) than 63.51% 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
DKL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DKL has more shares outstanding
Compared to 5 years ago, DKL has more shares outstanding
Compared to 1 year ago, DKL has an improved debt to assets ratio.
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's Debt to FCF ratio of 150.66 is on the low side compared to the rest of the industry. DKL is outperformed by 60.19% of its industry peers.
A Debt/Equity ratio of 22.02 is on the high side and indicates that DKL has dependencies on debt financing.
DKL has a worse Debt to Equity ratio (22.02) than 92.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.02 | ||
| Debt/FCF | 150.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.72
WACC8.57%
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 70.62% 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 72.99% of the companies in the same industry.
| 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.
Measured over the past 5 years, DKL shows a small growth in Earnings Per Share. The EPS has been growing by 2.76% on average per year.
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 17.53% yearly.
The Revenue is expected to grow by 3.37% on average over the next years.
EPS Next Y27.18%
EPS Next 2Y21.04%
EPS Next 3Y17.53%
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.
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 14.36 indicates a correct valuation of DKL.
DKL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DKL to the average of the S&P500 Index (27.15), we can say DKL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 9.81, the valuation of DKL can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DKL indicates a somewhat cheap valuation: DKL is cheaper than 67.77% of the companies listed in the same industry.
DKL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DKL is valued a bit more expensive than the industry average as 65.40% of the companies are valued more cheaply.
DKL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 161.16 | ||
| EV/EBITDA | 15.87 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DKL's earnings are expected to grow with 17.53% in the coming years.
PEG (NY)0.53
PEG (5Y)5.21
EPS Next 2Y21.04%
EPS Next 3Y17.53%
5. Dividend
5.1 Amount
DKL has a Yearly Dividend Yield of 10.35%, which is a nice return.
DKL's Dividend Yield is rather good when compared to the industry average which is at 6.66. DKL pays more dividend than 88.63% of the companies in the same industry.
DKL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.35% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.08%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
DKL pays out 146.09% of its income as dividend. 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 2Y21.04%
EPS Next 3Y17.53%
42.95
-0.12 (-0.28%)
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 Change0.23%
Market Cap2.30B
Analysts77.14
Price Target43.86 (2.12%)
Short Float %3.89%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.35% |
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)0.75%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)55.28%
EPS NY rev (3m)-3.99%
Revenue NQ rev (1m)4.8%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)16.53%
Revenue NY rev (3m)6.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 9.81 | ||
| P/S | 2.45 | ||
| P/FCF | 161.16 | ||
| P/OCF | 11.83 | ||
| P/B | 23.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.87 |
EPS(TTM)2.99
EY6.96%
EPS(NY)4.38
Fwd EY10.2%
FCF(TTM)0.27
FCFY0.62%
OCF(TTM)3.63
OCFY8.45%
SpS17.56
BVpS1.82
TBVpS-5.21
PEG (NY)0.53
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
WACC8.57%
ROIC/WACC0.72
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 Y27.18%
EPS Next 2Y21.04%
EPS Next 3Y17.53%
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%