EnLink Midstream LLC (ENLC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENLC - US29336T1007
14.12 USD
-0.03 (-0.21%)
13.86 USD
-0.26 (-1.84%)
Overall ENLC gets a fundamental rating of 3 out of 10. We evaluated ENLC against 207 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ENLC while its profitability can be described as average. ENLC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year ENLC was profitable.
- In the past year ENLC had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: ENLC reported negative net income in multiple years.
- ENLC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ENLC's Return On Assets of 1.27% is on the low side compared to the rest of the industry. ENLC is outperformed by 69.90% of its industry peers.
- With a Return On Equity value of 10.58%, ENLC perfoms like the industry average, outperforming 47.57% of the companies in the same industry.
- With a decent Return On Invested Capital value of 8.97%, ENLC is doing good in the industry, outperforming 63.11% of the companies in the same industry.
- ENLC had an Average Return On Invested Capital over the past 3 years of 6.78%. This is significantly below the industry average of 21.94%.
- The 3 year average ROIC (6.78%) for ENLC is below the current ROIC(8.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 10.58% | ||
| ROIC | 8.97% |
ROA(3y)2.31%
ROA(5y)-2%
ROE(3y)16.65%
ROE(5y)-6.19%
ROIC(3y)6.78%
ROIC(5y)5.75%
1.3 Margins
- ENLC's Profit Margin of 1.50% is on the low side compared to the rest of the industry. ENLC is outperformed by 70.87% of its industry peers.
- ENLC has a Operating Margin of 9.76%. This is in the lower half of the industry: ENLC underperforms 67.48% of its industry peers.
- ENLC's Operating Margin has improved in the last couple of years.
- The Gross Margin of ENLC (30.95%) is comparable to the rest of the industry.
- ENLC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.76% | ||
| PM (TTM) | 1.5% | ||
| GM | 30.95% |
OM growth 3Y1.09%
OM growth 5Y8.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.49%
GM growth 5Y6.17%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ENLC is creating some value.
- The number of shares outstanding for ENLC has been reduced compared to 1 year ago.
- The debt/assets ratio for ENLC is higher compared to a year ago.
2.2 Solvency
- ENLC has a debt to FCF ratio of 7.34. This is a slightly negative value and a sign of low solvency as ENLC would need 7.34 years to pay back of all of its debts.
- ENLC has a Debt to FCF ratio (7.34) which is in line with its industry peers.
- A Debt/Equity ratio of 4.39 is on the high side and indicates that ENLC has dependencies on debt financing.
- ENLC has a worse Debt to Equity ratio (4.39) than 91.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.39 | ||
| Debt/FCF | 7.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC8.29%
2.3 Liquidity
- ENLC has a Current Ratio of 0.42. This is a bad value and indicates that ENLC is not financially healthy enough and could expect problems in meeting its short term obligations.
- ENLC has a worse Current ratio (0.42) than 92.72% of its industry peers.
- A Quick Ratio of 0.36 indicates that ENLC may have some problems paying its short term obligations.
- ENLC's Quick ratio of 0.36 is on the low side compared to the rest of the industry. ENLC is outperformed by 91.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- The earnings per share for ENLC have decreased strongly by -61.90% in the last year.
- ENLC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.64% yearly.
- The Revenue has decreased by -6.07% in the past year.
- The Revenue has been decreasing by -2.17% on average over the past years.
EPS 1Y (TTM)-61.9%
EPS 3YN/A
EPS 5Y-24.64%
EPS Q2Q%-150%
Revenue 1Y (TTM)-6.07%
Revenue growth 3Y21.01%
Revenue growth 5Y-2.17%
Sales Q2Q%-7.89%
3.2 Future
- Based on estimates for the next years, ENLC will show a very strong growth in Earnings Per Share. The EPS will grow by 39.06% on average per year.
- The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y-13.65%
EPS Next 2Y32.73%
EPS Next 3Y39.06%
EPS Next 5YN/A
Revenue Next Year-4.62%
Revenue Next 2Y4.52%
Revenue Next 3Y1.42%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 58.83, the valuation of ENLC can be described as expensive.
- Based on the Price/Earnings ratio, ENLC is valued a bit more expensive than 72.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ENLC is valued quite expensively.
- A Price/Forward Earnings ratio of 18.21 indicates a rather expensive valuation of ENLC.
- ENLC's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ENLC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENLC.
- Based on the Price/Free Cash Flow ratio, ENLC is valued a bit cheaper than 67.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
- ENLC's earnings are expected to grow with 39.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.73%
EPS Next 3Y39.06%
5. Dividend
5.1 Amount
- ENLC has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
- ENLC's Dividend Yield is comparable with the industry average which is at 3.75.
- ENLC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
- The dividend of ENLC decreases each year by -13.77%.
- ENLC has paid a dividend for at least 10 years, which is a reliable track record.
- ENLC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.77%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- ENLC pays out 241.26% of its income as dividend. This is not a sustainable payout ratio.
DP241.26%
EPS Next 2Y32.73%
EPS Next 3Y39.06%
EnLink Midstream LLC / ENLC FAQ
Can you provide the ChartMill fundamental rating for EnLink Midstream LLC?
ChartMill assigns a fundamental rating of 3 / 10 to ENLC.
Can you provide the valuation status for EnLink Midstream LLC?
ChartMill assigns a valuation rating of 3 / 10 to EnLink Midstream LLC (ENLC). This can be considered as Overvalued.
What is the profitability of ENLC stock?
EnLink Midstream LLC (ENLC) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ENLC stock?
The Price/Earnings (PE) ratio for EnLink Midstream LLC (ENLC) is 58.83 and the Price/Book (PB) ratio is 6.82.
Can you provide the expected EPS growth for ENLC stock?
The Earnings per Share (EPS) of EnLink Midstream LLC (ENLC) is expected to decline by -13.65% in the next year.