EnLink Midstream LLC (ENLC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ENLC • US29336T1007
14.12 USD
-0.03 (-0.21%)
At close: Jan 30, 2025
13.86 USD
-0.26 (-1.84%)
After Hours: 1/30/2025, 8:21:41 PM
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. ENLC has a medium profitability rating, but doesn't score so well on its financial health evaluation. ENLC has a expensive valuation and it also scores bad on growth.
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.
- In the past 5 years ENLC always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ENLC (1.27%) is worse than 69.90% of its industry peers.
- Looking at the Return On Equity, with a value of 10.58%, ENLC is in line with its industry, outperforming 47.57% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.97%, ENLC is in the better half of 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 last Return On Invested Capital (8.97%) for ENLC is above the 3 year average (6.78%), which is a sign of increasing profitability.
| 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
- The Profit Margin of ENLC (1.50%) is worse than 70.87% of its industry peers.
- The Operating Margin of ENLC (9.76%) is worse than 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.
- In the last couple of years the Gross Margin of ENLC has grown nicely.
| 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 comparable to the rest of the industry.
- A Debt/Equity ratio of 4.39 is on the high side and indicates that ENLC has dependencies on debt financing.
- The Debt to Equity ratio of ENLC (4.39) is worse 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
- A Current Ratio of 0.42 indicates that ENLC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.42, ENLC is doing worse than 92.72% of the companies in the same industry.
- A Quick Ratio of 0.36 indicates that ENLC may have some problems paying its short term obligations.
- With a Quick ratio value of 0.36, ENLC is not doing good in the industry: 91.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- ENLC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.90%.
- 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
- ENLC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.06% yearly.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 the industry average as 72.33% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of ENLC to the average of the S&P500 Index (28.39), we can say ENLC is valued expensively.
- The Price/Forward Earnings ratio is 18.21, which indicates a rather expensive current valuation of ENLC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ENLC is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, 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.
- 67.48% of the companies in the same industry are more expensive than ENLC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as ENLC's earnings are expected to grow with 39.06% in the coming years.
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%.
- Compared to an average industry Dividend Yield of 3.73, ENLC has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ENLC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
- The dividend of ENLC decreases each year by -13.77%.
- ENLC has been paying a dividend for at least 10 years, so it has 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.