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DCP

DCP Midstream NYSE:DCP Stock Report

Last Price

US$34.18

Market Cap

US$7.2b

7D

3.9%

1Y

35.3%

Updated

17 May, 2022

Data

Company Financials +
DCP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health0/6
Dividends3/6

DCP Stock Overview

DCP Midstream, LP, together with its subsidiaries, owns, operates, acquires, and develops a portfolio of midstream energy assets in the United States.

DCP Midstream Competitors

Price History & Performance

Summary of all time highs, changes and price drops for DCP Midstream
Historical stock prices
Current Share PriceUS$34.18
52 Week HighUS$39.54
52 Week LowUS$23.58
Beta2.88
1 Month Change-6.74%
3 Month Change10.44%
1 Year Change35.26%
3 Year Change3.92%
5 Year Change-8.09%
Change since IPO48.29%

Recent News & Updates

Shareholder Returns

DCPUS Oil and GasUS Market
7D3.9%8.2%2.7%
1Y35.3%53.4%-8.1%

Return vs Industry: DCP underperformed the US Oil and Gas industry which returned 47.8% over the past year.

Return vs Market: DCP exceeded the US Market which returned -10.8% over the past year.

Price Volatility

Is DCP's price volatile compared to industry and market?
DCP volatility
DCP Average Weekly Movement6.7%
Oil and Gas Industry Average Movement8.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: DCP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DCP's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005n/aWouter van Kempenhttps://www.dcpmidstream.com

DCP Midstream, LP, together with its subsidiaries, owns, operates, acquires, and develops a portfolio of midstream energy assets in the United States. The company operates through Logistics and Marketing, and Gathering and Processing. The Logistics and Marketing segment engages in transporting, trading, marketing, and storing natural gas and natural gas liquids (NGLs); and fractionating NGLs.

DCP Midstream Fundamentals Summary

How do DCP Midstream's earnings and revenue compare to its market cap?
DCP fundamental statistics
Market CapUS$7.17b
Earnings (TTM)US$359.00m
Revenue (TTM)US$12.25b

20.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DCP income statement (TTM)
RevenueUS$12.25b
Cost of RevenueUS$10.93b
Gross ProfitUS$1.32b
Other ExpensesUS$962.00m
EarningsUS$359.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.70
Gross Margin10.79%
Net Profit Margin2.93%
Debt/Equity Ratio91.0%

How did DCP perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

91%

Payout Ratio

Valuation

Is DCP Midstream undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


44.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DCP ($34.18) is trading below our estimate of fair value ($61.12)

Significantly Below Fair Value: DCP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DCP is poor value based on its PE Ratio (20.1x) compared to the US Oil and Gas industry average (13.6x).

PE vs Market: DCP is poor value based on its PE Ratio (20.1x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: DCP is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: DCP is good value based on its PB Ratio (1.4x) compared to the US Oil and Gas industry average (2.1x).


Future Growth

How is DCP Midstream forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


43.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCP's forecast earnings growth (43.6% per year) is above the savings rate (1.9%).

Earnings vs Market: DCP's earnings (43.6% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DCP's revenue (0.3% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: DCP's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DCP's Return on Equity is forecast to be high in 3 years time


Past Performance

How has DCP Midstream performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-8.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DCP has high quality earnings.

Growing Profit Margin: DCP's current net profit margins (2.9%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: DCP's earnings have declined by 8.7% per year over the past 5 years.

Accelerating Growth: DCP's earnings growth over the past year (50.8%) exceeds its 5-year average (-8.7% per year).

Earnings vs Industry: DCP earnings growth over the past year (50.8%) underperformed the Oil and Gas industry 86.4%.


Return on Equity

High ROE: DCP's Return on Equity (7.2%) is considered low.


Financial Health

How is DCP Midstream's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DCP's short term assets ($2.2B) do not cover its short term liabilities ($2.6B).

Long Term Liabilities: DCP's short term assets ($2.2B) do not cover its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: DCP's net debt to equity ratio (90.9%) is considered high.

Reducing Debt: DCP's debt to equity ratio has increased from 71.9% to 91% over the past 5 years.

Debt Coverage: DCP's debt is not well covered by operating cash flow (15.7%).

Interest Coverage: DCP's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


Dividend

What is DCP Midstream current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.56%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DCP's dividend (4.56%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: DCP's dividend (4.56%) is in the top 25% of dividend payers in the US market (4.06%)


Stability and Growth of Payments

Stable Dividend: DCP's dividend payments have been volatile in the past 10 years.

Growing Dividend: DCP's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (90.6%), DCP's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (45.7%), DCP's dividend payments are well covered by cash flows.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Wouter van Kempen (52 yo)

9.33yrs

Tenure

US$5,474,922

Compensation

Mr. Wouter T. van Kempen has been the Chairman of the Board at DCP Midstream GP, LLC, General Partner of DCP Midstream, LP since January 1, 2014 and has been its Chief Executive Officer since January 1, 20...


CEO Compensation Analysis

Compensation vs Market: Wouter's total compensation ($USD5.47M) is below average for companies of similar size in the US market ($USD8.18M).

Compensation vs Earnings: Wouter's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DCP's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: DCP's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DCP Midstream, LP's employee growth, exchange listings and data sources


Key Information

  • Name: DCP Midstream, LP
  • Ticker: DCP
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$7.165b
  • Market Cap: US$7.066b
  • Shares outstanding: 211.31m
  • Website: https://www.dcpmidstream.com

Location

  • DCP Midstream, LP
  • 6900 East Layton Avenue
  • Suite 900
  • Denver
  • Colorado
  • 80237
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.