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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
2663.4%
Sector: 8.9%
Dividend Analysis audit
HIGH YIELD
9.97%
Trailing Yield
$9.97
Per $100 Invested
Attractive yield supported by strong profitability.
Est. Payout Ratio
163%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Delek Logistics Partners, LP (DKL) receives a "Hold" rating with a composite score of 49.5/100, ranked #966 out of 4446 stocks. Key factor scores: Quality 50/100, Value 57/100, Momentum 55/100. This is quantitative analysis only — not investment advice.
Delek Logistics Partners, LP (DKL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Delek Logistics Partners, LP Do?
Delek Logistics Partners, LP owns and operates logistics and marketing assets for crude oil, and intermediate and refined products in the United States. It operates through three segments: Pipelines and Transportation, Wholesale Marketing and Terminalling, and Investment in Pipeline Joint Ventures. The Pipelines and Transportation segment includes pipelines, trucks, and ancillary assets that provide crude oil gathering, crude oil intermediate and refined products transportation, and storage services primarily in support of the Tyler, El Dorado, and Big Spring refineries, as well as offers crude oil and other products transportation services to third parties. This segment operates approximately 400 miles of crude oil transportation pipelines; 450 miles of refined product pipelines; and approximately 900 miles of crude oil gathering, and intermediate and refined products storage tanks with an aggregate of approximately 10.2 million barrels of active shell capacity. The Wholesale Marketing and Terminalling segment provides wholesale marketing, transporting, storage, and terminalling services related to refined products to independent third parties. The Investments in Pipeline Joint Ventures Segment owns a portion of three joint ventures that have constructed separate crude oil pipeline systems and related ancillary assets, which serves third parties and subsidiaries. Delek Logistics GP, LLC serves as the general partner of the company. Delek Logistics Partners, LP was incorporated in 2012 and is headquartered in Brentwood, Tennessee. Delek Logistics Partners, LP is a subsidiary of Delek US Holdings, Inc. Delek Logistics Partners, LP (DKL) is classified as a mid-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Ezra U. Yemin, headquartered in Brentwood, Tennessee. With a market capitalization of $2.7B, DKL is one of the notable companies in the Industrials sector.
As of April 2026, Delek Logistics Partners, LP receives a Hold rating with a composite score of 49.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.DKL ranks #966 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Delek Logistics Partners, LP ranks #166 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DKL Stock Price and 52-Week Range
Delek Logistics Partners, LP (DKL) currently trades at $49.75. The stock gained $0.05 (0.1%) in the most recent trading session. The 52-week high for DKL is $55.89, which means the stock is currently trading -11.0% from its annual peak. The 52-week low is $34.59, putting the stock 43.8% above its annual trough. Recent trading volume was 11K shares, suggesting relatively thin trading activity.
Is DKL Overvalued or Undervalued? — Valuation Analysis
Delek Logistics Partners, LP (DKL) carries a value factor score of 57/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 16.35x, compared to the Industrials sector average of 28.33x — a discount of 42%. The price-to-book ratio stands at 435.35x, versus the sector average of 2.23x. The price-to-sales ratio is 2.74x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, DKL trades at 27.57x EV/EBITDA, versus 5.70x for the sector.
Overall, DKL's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Delek Logistics Partners, LP (DKL) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 2663.4%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 5.9% versus the sector average of 3.3%.
On a margin basis, Delek Logistics Partners, LP reports gross margins of 22.7%, compared to 35.8% for the sector. The operating margin is 18.1% (sector: 6.2%). Net profit margin stands at 16.7%, versus 3.9% for the average Industrials stock. Revenue growth is running at -1.3% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
DKL Debt, Balance Sheet, and Financial Health
Delek Logistics Partners, LP has a debt-to-equity ratio of 38345.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.12x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.34B. Cash and equivalents stand at $7M.
DKL has a beta of 0.51, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Delek Logistics Partners, LP is 86/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Delek Logistics Partners, LP Revenue and Earnings History — Quarterly Trend
In TTM 2026, Delek Logistics Partners, LP reported revenue of $972M. Net income for the quarter was $163M. Gross margin was 22.7%. Operating income came in at $177M.
In FY 2025, Delek Logistics Partners, LP reported revenue of $1.01B. Net income for the quarter was $176M. Gross margin was 21.2%. Revenue grew 7.7% year-over-year compared to FY 2024. Operating income came in at $182M.
In Q3 2025, Delek Logistics Partners, LP reported revenue of $261M. Net income for the quarter was $46M. Gross margin was 20.6%. Revenue grew 22.1% year-over-year compared to Q3 2024. Operating income came in at $45M.
In Q2 2025, Delek Logistics Partners, LP reported revenue of $246M. Net income for the quarter was $45M. Gross margin was 25.8%. Revenue grew -6.9% year-over-year compared to Q2 2024. Operating income came in at $52M.
Over the past 8 quarters, Delek Logistics Partners, LP has demonstrated a growth trajectory, with revenue expanding from $265M to $972M. Investors analyzing DKL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DKL Dividend Yield and Income Analysis
Delek Logistics Partners, LP (DKL) currently pays a dividend yield of 10.0%. At this yield, a $10,000 investment in DKL stock would generate approximately $$997.00 in annual dividend income. With a net margin of 16.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
DKL Momentum and Technical Analysis Profile
Delek Logistics Partners, LP (DKL) has a momentum factor score of 55/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 4/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
DKL vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing DKL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DKL vs S&P 500 (SPY) comparison to assess how Delek Logistics Partners, LP stacks up against the broader market across all factor dimensions.
DKL Next Earnings Date
No upcoming earnings date has been announced for Delek Logistics Partners, LP (DKL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DKL? — Investment Thesis Summary
Delek Logistics Partners, LP presents a balanced picture with arguments on both sides. Low volatility (stability score 86/100) reduces downside risk.
In summary, Delek Logistics Partners, LP (DKL) earns a Hold rating with a composite score of 49.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DKL stock.
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Institutional Research Dossier
Delek Logistics Partners, LP (DKL) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Delek Logistics Partners, LP (DKL) receives a Hold rating, reflecting a balanced view of its operational strengths and financial challenges. While DKL exhibits attractive profitability metrics compared to its sector, its high debt levels and negative free cash flow raise concerns about its long-term financial sustainability. The current valuation appears fair, but the risks associated with its capital structure warrant caution, justifying the neutral stance.
DKL operates in the midstream energy sector, providing essential transportation and storage services. Its strategic positioning within the Delek US Holdings ecosystem provides a degree of stability, but its reliance on its parent company also introduces potential conflicts of interest. The company's ability to generate consistent profits is evident, but its capital allocation decisions and growth prospects require careful monitoring, making a Hold rating the most appropriate at this time.
Business Strategy & Overview
Delek Logistics Partners, LP (DKL) operates as a midstream energy company, focusing on the transportation, storage, and wholesale marketing of crude oil and refined products. Its primary revenue streams are derived from pipeline transportation fees, terminalling services, and wholesale marketing activities. A significant portion of DKL's operations are integrated with Delek US Holdings, Inc., its parent company, providing a degree of captive business and operational synergies. This relationship, however, also means that DKL's performance is closely tied to the strategic decisions and operational efficiency of Delek US Holdings.
DKL's strategic positioning centers around supporting the refining operations of Delek US Holdings, particularly its refineries in Tyler, El Dorado, and Big Spring. The company's pipeline network and storage facilities are strategically located to facilitate the movement of crude oil to these refineries and the distribution of refined products to end markets. This integrated approach allows DKL to capture value across the midstream value chain, from gathering crude oil to delivering refined products.
The company's growth strategy involves expanding its pipeline network, increasing storage capacity, and pursuing strategic acquisitions to enhance its operational footprint. DKL also participates in joint ventures to develop new pipeline infrastructure, allowing it to share the capital burden and risk associated with large-scale projects. These joint ventures provide access to additional transportation capacity and expand DKL's reach into new markets.
DKL's wholesale marketing and terminalling segment plays a crucial role in connecting refineries with end-users. This segment provides wholesale marketing, transporting, storage, and terminalling services related to refined products to independent third parties. This diversification helps to mitigate the impact of fluctuations in refining margins and provides a more stable revenue stream.
The company's reliance on its parent company, Delek US Holdings, presents both opportunities and challenges. While it provides a stable source of revenue and operational synergies, it also exposes DKL to the strategic decisions and financial health of its parent. Any significant changes in Delek US Holdings' operations or financial condition could have a material impact on DKL's performance.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-1.3%
Sector: 6.4%
-120% VS SCTR
Economic Moat Analysis
Delek Logistics Partners, LP possesses a Narrow economic moat, primarily derived from its strategic asset locations and the integrated nature of its operations with Delek US Holdings. The company's pipeline network and storage facilities are strategically positioned to support the refining operations of its parent company, creating a degree of captive business and operational synergies. This integration provides a competitive advantage by ensuring a consistent flow of crude oil to refineries and the efficient distribution of refined products to end markets.
The company's pipeline infrastructure represents a significant barrier to entry for potential competitors. Constructing new pipelines requires substantial capital investment, regulatory approvals, and time, making it difficult for new entrants to replicate DKL's existing network. The existing infrastructure provides DKL with a cost advantage over competitors who would need to build new pipelines to serve the same markets.
The terminalling and storage assets also contribute to the narrow moat. These assets provide essential services for refiners and marketers, allowing them to store and distribute refined products efficiently. The limited availability of suitable locations for new terminalling facilities and the regulatory hurdles associated with their construction create a barrier to entry for new competitors.
However, the moat is not wide due to the dependence on Delek US Holdings. A significant portion of DKL's revenue is derived from its parent company, making it vulnerable to changes in Delek US Holdings' strategic decisions or financial condition. If Delek US Holdings were to reduce its refining capacity or change its sourcing patterns, it could have a material impact on DKL's revenue and profitability.
Furthermore, the midstream energy sector is subject to regulatory risks and environmental concerns, which could erode DKL's competitive advantage. Changes in environmental regulations or increased scrutiny of pipeline operations could increase compliance costs and limit the company's ability to expand its infrastructure.
While DKL's strategic asset locations and integrated operations provide a narrow economic moat, its dependence on Delek US Holdings and the regulatory risks associated with the midstream energy sector limit the strength and durability of its competitive advantage.
Financial Health & Profitability
Delek Logistics Partners, LP exhibits a mixed financial profile. While the company demonstrates strong profitability metrics compared to its sector, its high debt levels and negative free cash flow raise concerns about its long-term financial sustainability. The company's revenue has fluctuated over the past few years, with a slight decrease of 1.3% in the most recent TTM period, while the sector average shows a growth of 6.6%. This revenue volatility highlights the company's sensitivity to changes in commodity prices and refining margins.
DKL's gross margin, operating margin, and net margin significantly exceed the sector averages. The TTM gross margin of 22.7% compares favorably to the sector average of 35.8%, while the operating margin of 18.1% and net margin of 16.7% are substantially higher than the sector averages of 6.2% and 3.7%, respectively. This superior profitability reflects the company's efficient operations and strategic asset locations.
However, DKL's balance sheet is highly leveraged, with a total debt of $2.34 billion and a debt-to-equity ratio of 38,345.00, which is significantly higher than the sector average of 70.00. This high level of debt increases the company's financial risk and limits its flexibility to pursue growth opportunities or weather economic downturns. The company's current ratio of 1.12 indicates adequate short-term liquidity, but the high debt burden remains a concern.
The company's free cash flow is negative, with a TTM value of -$421.31 million. This negative free cash flow indicates that the company is not generating enough cash from its operations to cover its capital expenditures and debt service obligations. This reliance on external financing to fund its operations raises concerns about its long-term financial sustainability.
Analyzing the quarterly financial history reveals some volatility in revenue and profitability. While the company has consistently generated positive net income, its revenue has fluctuated from quarter to quarter. The gross margin and operating margin have also varied, reflecting changes in commodity prices and refining margins.
Overall, DKL's financial health is a mixed bag. While the company demonstrates strong profitability metrics, its high debt levels and negative free cash flow raise concerns about its long-term financial sustainability. Investors should carefully monitor the company's debt levels and cash flow generation to assess its ability to meet its financial obligations and fund its growth initiatives.
Valuation Assessment
Delek Logistics Partners, LP's valuation presents a mixed picture. While some metrics suggest the company is undervalued compared to its sector, others indicate a fair or even slightly rich valuation. The company's P/E ratio of 17.3x is lower than the sector average of 27.7x, suggesting that the stock may be undervalued relative to its earnings. However, the EV/EBITDA ratio of 7.0x is higher than the sector average of 5.7x, indicating that the company may be overvalued relative to its enterprise value and operating cash flow.
The company's ROE of 2,663.4% is exceptionally high compared to the sector average of 9.2%. However, this extremely high ROE is likely due to the company's high leverage, which can artificially inflate the return on equity. A more conservative measure of profitability, such as return on assets (ROA), would provide a more accurate assessment of the company's financial performance.
The negative free cash flow further complicates the valuation assessment. A traditional discounted cash flow (DCF) analysis would be difficult to perform given the company's negative free cash flow. Alternative valuation methods, such as relative valuation or asset-based valuation, may be more appropriate in this case.
Considering the company's high debt levels and negative free cash flow, a conservative valuation approach is warranted. The company's high debt burden increases its financial risk and limits its flexibility to pursue growth opportunities or weather economic downturns. The negative free cash flow indicates that the company is not generating enough cash from its operations to cover its capital expenditures and debt service obligations.
Based on the available data, DKL's valuation appears to be fair. While the company's P/E ratio suggests undervaluation, the EV/EBITDA ratio and negative free cash flow indicate a more cautious assessment. Investors should carefully consider the company's high debt levels and negative free cash flow when evaluating its valuation.
A more in-depth valuation analysis would require additional information, such as management's guidance for future earnings and cash flow, as well as a detailed assessment of the company's assets and liabilities. However, based on the available data, the current valuation appears to be reasonable, but not compelling enough to warrant a Buy rating.
Risk & Uncertainty
Delek Logistics Partners, LP faces several specific risks that could negatively impact its financial performance and valuation. One of the most significant risks is its dependence on Delek US Holdings, Inc., its parent company. A substantial portion of DKL's revenue is derived from its relationship with Delek US Holdings, making it vulnerable to changes in its parent's strategic decisions or financial condition. If Delek US Holdings were to reduce its refining capacity or change its sourcing patterns, it could have a material impact on DKL's revenue and profitability.
Another significant risk is the company's high debt levels. DKL has a substantial amount of debt outstanding, which increases its financial risk and limits its flexibility to pursue growth opportunities or weather economic downturns. The company's debt service obligations could strain its cash flow and potentially lead to financial distress if its earnings decline.
The midstream energy sector is subject to regulatory risks and environmental concerns. Changes in environmental regulations or increased scrutiny of pipeline operations could increase compliance costs and limit the company's ability to expand its infrastructure. Environmental incidents, such as pipeline leaks or spills, could result in significant liabilities and reputational damage.
Competition from other midstream energy companies also poses a risk to DKL's business. The midstream sector is highly competitive, with numerous companies vying for the same customers and projects. Increased competition could lead to lower transportation fees and reduced profitability.
Commodity price volatility is another risk factor. DKL's revenue is indirectly affected by commodity prices, as changes in crude oil and refined product prices can impact refining margins and demand for transportation and storage services. A significant decline in commodity prices could reduce refining activity and negatively impact DKL's revenue.
Bulls Say / Bears Say
The Bull Case
BULL VIEWDelek Logistics Partners benefits from a stable revenue stream due to its integrated relationship with Delek US Holdings, providing a predictable base for future growth.
BULL VIEWThe company's high operating and net margins compared to the sector demonstrate superior efficiency and profitability, suggesting strong long-term value creation.
BULL VIEWDKL's strategic asset locations and pipeline infrastructure create a competitive advantage, allowing it to capture value across the midstream value chain.
The Bear Case
BEAR VIEWDelek Logistics Partners' high debt-to-equity ratio poses a significant financial risk, potentially limiting its ability to invest in growth and increasing vulnerability to economic downturns.
BEAR VIEWThe company's negative free cash flow raises concerns about its long-term financial sustainability, requiring reliance on external financing and potentially diluting shareholder value.
BEAR VIEWDKL's dependence on Delek US Holdings exposes it to strategic and financial risks associated with its parent company, limiting its independence and growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score DKL and 4,400+ other equities.
Delek Logistics Partners, LP exhibits a 5053% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.9%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
22.7%
Sector: 35.8%
Operating Margin
Core business profitability
18.1%
Sector: 6.2%
Net Margin
Bottom-line profitability
16.7%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $997 annually in dividends at the current trailing rate.
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