Of note is the ratio of DCP Midstream LP's sales and general administrative expense to its total operating expenses; just 8.49% of US stocks have a lower such ratio.
As for revenue growth, note that DCP's revenue has grown -22.36% over the past 12 months; that beats the revenue growth of just 16.19% of US companies in our set.
DCP Midstream LP's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 10.72%, greater than the shareholder yield of 84.2% of stocks in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to DCP Midstream LP are APLE, HNP, HST, AROC, and TALO.
DCP Midstream owns, operates, acquires, and develops a portfolio of midstream energy assets in the United States. It operates through three segments: Natural Gas Services, natural gas liquids (NGL) Logistics, and Wholesale Propane Logistics. The company was founded in 2005 and is based in Denver, Colorado.
DCP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for DCP Midstream LP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that DCP Midstream LP ranked in the 60th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 42.33%. As for the metrics that stood out in our discounted cash flow analysis of DCP Midstream LP, consider:
As a business, DCP is generating more cash flow than 81.47% of positive cash flow stocks in the Energy.
46% of the company's capital comes from equity, which is greater than just 17.41% of stocks in our cash flow based forecasting set.
DCP Midstream LP's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.27. This coverage rate is greater than that of just 24.53% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DHT, PXD, CEQP, PDCE, and VTOL can be thought of as valuation peers to DCP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
DENVER, Jan. 14, 2021 (GLOBE NEWSWIRE) -- DCP Midstream, LP (NYSE: DCP) will host a conference call to discuss its fourth quarter and full year 2020 earnings and 2021 guidance at 10:00 a.m. ET on Thursday, February 11, 2021, which will be released after the New York Stock Exchange closes for trading on Wednesday, February 10, 2021. The live audio webcast of the conference call and accompanying presentation slides can be accessed through the Investors section on the DCP website at www.dcpmidstream.com and the conference call can be accessed by dialing (844) 233-0113 in the United States or (574) 990-1008 outside the United States. The conference confirmation ID number is 2893317.A replay of the conference call will be available until February 25, 2021, by dialing (855) 859-2056 in the U...