DCP Midstream, LP [NYSE:DCP]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to DCP Midstream, LP [DCP], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give DCP an Outperform rating. The average 12-month price forecast for this stock is $40.43, with the high estimate being $51.00, the low estimate being $32.00 and the median estimate amounting to $41.50. This is compared to its latest closing price of $31.70.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for DCP Midstream, LP [DCP] is sitting at 2.43. This is compared to 1 month ago, when its average rating was 2.43.
For the quarter ending in Sep-18 DCP Midstream, LP [DCP] generated $2.76 billion in sales. That’s 3.39% lower than the average estimate of $2.86 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Tue 12 Feb (In 31 Days).
Fundamental Analysis of DCP Midstream, LP [DCP]
Now let’s turn to look at profitability: with a current Operating Margin for DCP Midstream, LP [DCP] sitting at +3.25 and its Gross Margin at +6.79, this company’s Net Margin is now 0.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 3.24, and its Return on Invested Capital has reached 1.90%. Its Return on Equity is 1.32, and its Return on Assets is 0.68. These metrics suggest that this DCP Midstream, LP does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, DCP Midstream, LP [DCP] has generated a Total Debt to Total Equity ratio of 64.89. Similarly, its Total Debt to Total Capital is 39.35, while its Total Debt to Total Assets stands at 33.92. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 69.60, and its Long-Term Debt to Total Capital is 39.35. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 13.04 and its Total Debt to EBITDA Value is 7.19. The Enterprise Value to Sales for this firm is now 0.87, and its Total Debt to Enterprise Value stands at 0.46. DCP Midstream, LP [DCP] has a Price to Book Ratio of 0.77, a Price to Cash Flow Ratio of 5.81 and P/E Ratio of 73.02. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Similarly, this company’s Receivables Turnover is 14.96 and its Total Asset Turnover is 0.89. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.84 and its Current Ratio is 0.89. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: DCP Midstream, LP [DCP] has 133.84M shares outstanding, amounting to a total market cap of $4.22B. Its stock price has been found in the range of 24.18 to 46.67. At its current price, it has moved by -32.50% from its 52-week high, and it has moved 30.27% from its 52-week low.
This stock’s Beta value is currently 2.28, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.60. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is DCP Midstream, LP [DCP] a Reliable Buy?
DCP Midstream, LP [DCP] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.