Delek Logistics Partners L.P. Common Units representing Limited Partner Interests (DKL)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• High return on equity of 847.5% demonstrating efficient capital deployment
• Revenue growth of 21.9% demonstrates strong top-line momentum
• Attractive 9.0% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($3) with negative 1658% margin of safety—limited downside protection
• High leverage at 389.20x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Delek Logistics Partners L.P. Common Units representing Limited Partner Interests is a small-cap energy company valued at $2.7 billion. The business generates $1.0 billion in annual revenue with a 4.7% net margin. From a quality standpoint, Delek shows distressed Altman Z-Score of 0.7 warrants caution and extraordinary 848% return on equity. On valuation, the stock is reasonably priced at 15.6x earnings, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 21.9% and profit growth of 34.0%. The 9.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Delek's 22% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 389.2x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer