Delek Logistics Partners, LP Fundamental Analysis (NYSE: DKL)
Delek Logistics Partners, LP (NYSE: DKL) shows moderate financial fundamentals with a PE ratio of 19.37, profit margin of 12.85%, and ROE of -9.36%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 7.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -542.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DKL's fundamental strength across five key dimensions:
Efficiency Score
WeakDKL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDKL trades at attractive valuation levels.
Growth Score
ExcellentDKL delivers strong and consistent growth momentum.
Financial Health Score
ModerateDKL shows balanced financial health with some risks.
Profitability Score
WeakDKL struggles to sustain strong margins.
Key Financial Metrics
Is DKL Expensive or Cheap?
P/E Ratio
DKL trades at 19.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DKL's PEG of -7.14 indicates potential undervaluation.
Price to Book
The market values Delek Logistics Partners, LP at -42.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.22 times EBITDA. This is generally considered low.
How Well Does DKL Make Money?
Net Profit Margin
For every $100 in sales, Delek Logistics Partners, LP keeps $12.85 as profit after all expenses.
Operating Margin
Core operations generate 15.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-9.36 in profit for every $100 of shareholder equity.
ROA
Delek Logistics Partners, LP generates $5.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Delek Logistics Partners, LP generates strong operating cash flow of $334.10M, reflecting robust business health.
Free Cash Flow
Delek Logistics Partners, LP generates strong free cash flow of $128.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.41 in free cash annually.
FCF Yield
DKL converts 4.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
-42.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-34.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-9.36
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How DKL Stacks Against Its Sector Peers
| Metric | DKL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.37 | 21.40 | Neutral |
| ROE | -935.80% | 1283.00% | Weak |
| Net Margin | 12.85% | 1271.00% | Weak |
| Debt/Equity | -34.75 | -1.74 (disorted) | Distorted |
| Current Ratio | 0.96 | 2.22 | Weak Liquidity |
| ROA | 5.37% | 4310.00% | Weak |
DKL outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Delek Logistics Partners, LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.93%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-30.42%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-22.86%
Industry Style: Cyclical, Value, Commodity
Declining