ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
NYSE:EPD - New York Stock Exchange, Inc. - US2937921078 - Currency: USD
EPD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While EPD is still in line with the averages on profitability rating, there are concerns on its financial health. EPD is not valued too expensively and it also shows a decent growth rate. Finally EPD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EPD had positive earnings in the past year.
EPD had a positive operating cash flow in the past year.
EPD had positive earnings in each of the past 5 years.
In the past 5 years EPD always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.71%, EPD is doing good in the industry, outperforming 66.50% of the companies in the same industry.
EPD has a better Return On Equity (20.39%) than 73.79% of its industry peers.
The Return On Invested Capital of EPD (8.87%) is better than 61.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EPD is significantly below the industry average of 28.71%.
The last Return On Invested Capital (8.87%) for EPD is above the 3 year average (8.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 20.39% | ||
| ROIC | 8.87% |
ROA(3y)7.51%
ROA(5y)7.15%
ROE(3y)19.43%
ROE(5y)18.42%
ROIC(3y)8.73%
ROIC(5y)8.51%
1.3 Margins
The Profit Margin of EPD (10.22%) is comparable to the rest of the industry.
EPD's Profit Margin has been stable in the last couple of years.
EPD has a worse Operating Margin (12.23%) than 62.62% of its industry peers.
In the last couple of years the Operating Margin of EPD has remained more or less at the same level.
EPD has a worse Gross Margin (19.53%) than 67.48% of its industry peers.
In the last couple of years the Gross Margin of EPD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.23% | ||
| PM (TTM) | 10.22% | ||
| GM | 19.53% |
OM growth 3Y-13.55%
OM growth 5Y-0.74%
PM growth 3Y-7.13%
PM growth 5Y-0.61%
GM growth 3Y-12.54%
GM growth 5Y-1.03%
2. Health
2.1 Basic Checks
EPD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, EPD has about the same amount of shares outstanding.
The number of shares outstanding for EPD has been reduced compared to 5 years ago.
Compared to 1 year ago, EPD has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of EPD is 8.80, which is on the high side as it means it would take EPD, 8.80 years of fcf income to pay off all of its debts.
EPD has a Debt to FCF ratio (8.80) which is in line with its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that EPD has dependencies on debt financing.
With a Debt to Equity ratio value of 1.08, EPD is not doing good in the industry: 74.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.11
WACC7.99%
2.3 Liquidity
EPD has a Current Ratio of 1.07. This is a normal value and indicates that EPD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.07, EPD is in line with its industry, outperforming 40.78% of the companies in the same industry.
EPD has a Quick Ratio of 1.07. This is a bad value and indicates that EPD is not financially healthy enough and could expect problems in meeting its short term obligations.
EPD has a worse Quick ratio (0.83) than 65.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
EPD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.98%, which is quite good.
EPD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.11% yearly.
The Revenue has grown by 16.20% in the past year. This is quite good.
EPD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.
EPS 1Y (TTM)8.98%
EPS 3Y13.8%
EPS 5Y4.11%
EPS Q2Q%8.33%
Revenue 1Y (TTM)16.2%
Revenue growth 3Y22.27%
Revenue growth 5Y6.36%
Sales Q2Q%14.81%
3.2 Future
Based on estimates for the next years, EPD will show a small growth in Earnings Per Share. The EPS will grow by 3.75% on average per year.
Based on estimates for the next years, EPD will show a small growth in Revenue. The Revenue will grow by 4.86% on average per year.
EPS Next Y7.68%
EPS Next 2Y6.99%
EPS Next 3Y6.39%
EPS Next 5Y3.75%
Revenue Next Year17.1%
Revenue Next 2Y10.98%
Revenue Next 3Y11.42%
Revenue Next 5Y4.86%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.42, EPD is valued correctly.
EPD's Price/Earnings ratio is in line with the industry average.
EPD is valuated cheaply when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.50, the valuation of EPD can be described as very reasonable.
62.62% of the companies in the same industry are more expensive than EPD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.47. EPD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
EPD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. EPD is more expensive than 60.68% of the companies in the same industry.
EPD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.83 | ||
| EV/EBITDA | 11.08 |
4.3 Compensation for Growth
EPD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.62
PEG (5Y)3.02
EPS Next 2Y6.99%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.36%, EPD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.55, EPD pays a bit more dividend than its industry peers.
EPD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
5.2 History
The dividend of EPD has a limited annual growth rate of 2.94%.
EPD has paid a dividend for at least 10 years, which is a reliable track record.
EPD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.94%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
77.02% of the earnings are spent on dividend by EPD. This is not a sustainable payout ratio.
The dividend of EPD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.02%
EPS Next 2Y6.99%
EPS Next 3Y6.39%
ENTERPRISE PRODUCTS PARTNERS
NYSE:EPD (1/27/2025, 2:12:05 PM)
33.17
-0.4 (-1.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.82%
Inst Owner Change-0.43%
Ins Owners32.76%
Ins Owner Change-0.16%
Market Cap71.90B
Analysts84.35
Price Target35.95 (8.38%)
Short Float %1.48%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend1.98
Dividend Growth(5Y)2.94%
DP77.02%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.33%
Min EPS beat(2)-3.83%
Max EPS beat(2)-2.82%
EPS beat(4)1
Avg EPS beat(4)-0.94%
Min EPS beat(4)-3.83%
Max EPS beat(4)5.14%
EPS beat(8)3
Avg EPS beat(8)-1.06%
EPS beat(12)5
Avg EPS beat(12)-0.92%
EPS beat(16)6
Avg EPS beat(16)-3.61%
Revenue beat(2)0
Avg Revenue beat(2)-3.97%
Min Revenue beat(2)-6.45%
Max Revenue beat(2)-1.48%
Revenue beat(4)2
Avg Revenue beat(4)2.86%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)16.46%
Revenue beat(8)2
Avg Revenue beat(8)-3.93%
Revenue beat(12)6
Avg Revenue beat(12)3.38%
Revenue beat(16)9
Avg Revenue beat(16)6.98%
PT rev (1m)1.18%
PT rev (3m)4.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.5 | ||
| P/S | 1.27 | ||
| P/FCF | 19.83 | ||
| P/OCF | 8.85 | ||
| P/B | 2.53 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | 11.08 |
EPS(TTM)2.67
EY8.05%
EPS(NY)2.88
Fwd EY8.7%
FCF(TTM)1.67
FCFY5.04%
OCF(TTM)3.75
OCFY11.3%
SpS26.13
BVpS13.1
TBVpS8.84
PEG (NY)1.62
PEG (5Y)3.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 20.39% | ||
| ROCE | 11.23% | ||
| ROIC | 8.87% | ||
| ROICexc | 9.09% | ||
| ROICexgc | 10.73% | ||
| OM | 12.23% | ||
| PM (TTM) | 10.22% | ||
| GM | 19.53% | ||
| FCFM | 6.4% |
ROA(3y)7.51%
ROA(5y)7.15%
ROE(3y)19.43%
ROE(5y)18.42%
ROIC(3y)8.73%
ROIC(5y)8.51%
ROICexc(3y)8.89%
ROICexc(5y)8.64%
ROICexgc(3y)10.65%
ROICexgc(5y)10.38%
ROCE(3y)11.05%
ROCE(5y)10.77%
ROICexcg growth 3Y3.47%
ROICexcg growth 5Y1.71%
ROICexc growth 3Y3.44%
ROICexc growth 5Y2.37%
OM growth 3Y-13.55%
OM growth 5Y-0.74%
PM growth 3Y-7.13%
PM growth 5Y-0.61%
GM growth 3Y-12.54%
GM growth 5Y-1.03%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 8.8 | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 188.32% | ||
| Cap/Sales | 7.94% | ||
| Interest Coverage | 5.39 | ||
| Cash Conversion | 87.21% | ||
| Profit Quality | 62.61% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score7
WACC7.99%
ROIC/WACC1.11
Cap/Depr(3y)112.68%
Cap/Depr(5y)145.84%
Cap/Sales(3y)5.13%
Cap/Sales(5y)8.26%
Profit Quality(3y)109%
Profit Quality(5y)88.03%
High Growth Momentum
Growth
EPS 1Y (TTM)8.98%
EPS 3Y13.8%
EPS 5Y4.11%
EPS Q2Q%8.33%
EPS Next Y7.68%
EPS Next 2Y6.99%
EPS Next 3Y6.39%
EPS Next 5Y3.75%
Revenue 1Y (TTM)16.2%
Revenue growth 3Y22.27%
Revenue growth 5Y6.36%
Sales Q2Q%14.81%
Revenue Next Year17.1%
Revenue Next 2Y10.98%
Revenue Next 3Y11.42%
Revenue Next 5Y4.86%
EBIT growth 1Y9.54%
EBIT growth 3Y5.7%
EBIT growth 5Y5.56%
EBIT Next Year42.7%
EBIT Next 3Y16.1%
EBIT Next 5Y10.38%
FCF growth 1Y-37.68%
FCF growth 3Y18.23%
FCF growth 5Y17.72%
OCF growth 1Y9.19%
OCF growth 3Y8.71%
OCF growth 5Y4.32%