DCP Midstream, LP
DCP Midstream, LP Fundamental Analysis
DCP Midstream, LP (DCP-PC) shows weak financial fundamentals with a PE ratio of 8.26, profit margin of 7.02%, and ROE of -351.02%. The company generates $19.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -43851.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DCP-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakDCP-PC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDCP-PC trades at attractive valuation levels.
Growth Score
ModerateDCP-PC shows steady but slowing expansion.
Financial Health Score
WeakDCP-PC carries high financial risk with limited liquidity.
Profitability Score
WeakDCP-PC struggles to sustain strong margins.
Key Financial Metrics
Is DCP-PC Expensive or Cheap?
P/E Ratio
DCP-PC trades at 8.26 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DCP-PC's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values DCP Midstream, LP at 1445382.80 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.84 times EBITDA. This is generally considered low.
How Well Does DCP-PC Make Money?
Net Profit Margin
For every $100 in sales, DCP Midstream, LP keeps $7.02 as profit after all expenses.
Operating Margin
Core operations generate 6.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-351.02 in profit for every $100 of shareholder equity.
ROA
DCP Midstream, LP generates $7.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DCP Midstream, LP produces operating cash flow of $2.40B, showing steady but balanced cash generation.
Free Cash Flow
DCP Midstream, LP generates strong free cash flow of $2.09B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.85 in free cash annually.
FCF Yield
DCP-PC converts 18.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1445382.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
809016.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-351.02
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How DCP-PC Stacks Against Its Sector Peers
| Metric | DCP-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.26 | 20.19 | Better (Cheaper) |
| ROE | -35101.83% | 1019.00% | Weak |
| Net Margin | 7.02% | -44017.00% (disorted) | Weak |
| Debt/Equity | 809016.80 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.68 | 4.60 | Weak Liquidity |
| ROA | 7.89% | -11655350.00% (disorted) | Weak |
DCP-PC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DCP Midstream, LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity