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

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business and the balance sheet. Delek Logistics provides necessary midstream services—gathering, pipelines, transportation, storage, terminalling, and water disposal—so much of its revenue should be recurring. The filed numbers show FY2025 revenue of $1.0B and net income of $176.5M, up from $142.7M in FY2024 and $126.2M in FY2023. Fiscal Q2 2026 revenue was $384.8M, versus $246.3M in fiscal Q2 2025, so top-line growth is real. But the supplied profit-growth figure is -17.12%, and an Altman Z-Score of 0.81 signals stress. The balance sheet is levered: debt-to-equity is 389.20, and the FairStock P/B calculation is 470.00, meaning little book equity supports the market cap. A FairStock ROE of 439.37% is not proof of a wonderful business; it is leverage at work, because ROCE is only 3.82%. I prefer a company earning high returns on capital without heavy debt. At the 2026-10-13 close of $56.74, the FairStock P/E of 19.63 and FCF yield of 3.9% are not demanding if growth continues, but they are not a bargain. The 7.81% dividend yield is attractive, yet trailing free cash flow of $119.1M is far below the implied distribution, so coverage deserves scrutiny. A Piotroski F-Score of 7/9 is respectable, and a beta of 0.41 suggests lower volatility. Still, with the Lynch category of CYCLICAL—Oil & Gas Refining & Marketing—and earnings tied to the economic cycle, I would want a wider margin of safety and less balance-sheet risk before calling this a compelling value.

In plain English: Delek Logistics moves, stores, and handles crude oil, refined products, natural gas, and water for energy customers. The business is profitable and pays a large dividend, but it has grown sales while profit recently slipped, and it carries a lot of debt. At $56.74, the price looks full rather than cheap compared with its earnings and cash flow, though the high payout is a clear attraction.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer