ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - NYSE:EPD - US2937921078
31.89 USD
+0.17 (+0.54%)
31.8901 USD
0 (0%)
Taking everything into account, EPD scores 3 out of 10 in our fundamental rating. EPD was compared to 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 has a valuation in line with the averages, but it does not seem to be growing. Finally EPD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EPD was profitable.
In the past year EPD had a positive cash flow from operations.
In the past 5 years EPD has always been profitable.
Each year in the past 5 years EPD had a positive operating cash flow.
1.2 Ratios
EPD has a better Return On Assets (7.36%) than 77.62% of its industry peers.
EPD has a better Return On Equity (19.59%) than 86.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.63%, EPD is in the better half of the industry, outperforming 77.62% of the companies in the same industry.
EPD had an Average Return On Invested Capital over the past 3 years of 8.99%. This is significantly below the industry average of 21.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.36% | ||
| ROE | 19.59% | ||
| ROIC | 8.63% |
ROA(3y)7.76%
ROA(5y)7.18%
ROE(3y)20.15%
ROE(5y)18.79%
ROIC(3y)8.99%
ROIC(5y)8.59%
1.3 Margins
EPD has a Profit Margin (10.81%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EPD has declined.
EPD's Operating Margin of 12.94% is in line compared to the rest of the industry. EPD outperforms 44.76% of its industry peers.
In the last couple of years the Operating Margin of EPD has declined.
Looking at the Gross Margin, with a value of 21.52%, EPD is doing worse than 64.76% of the companies in the same industry.
EPD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.94% | ||
| PM (TTM) | 10.81% | ||
| GM | 21.52% |
OM growth 3Y-4.14%
OM growth 5Y-6.3%
PM growth 3Y-2.66%
PM growth 5Y-5.68%
GM growth 3Y-2.8%
GM growth 5Y-5.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPD is creating some value.
The number of shares outstanding for EPD remains at a similar level compared to 1 year ago.
EPD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EPD has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of EPD is 10.86, which is on the high side as it means it would take EPD, 10.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EPD (10.86) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that EPD has dependencies on debt financing.
EPD has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: EPD underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 10.86 | ||
| Altman-Z | N/A |
ROIC/WACC1.09
WACC7.94%
2.3 Liquidity
EPD has a Current Ratio of 0.88. This is a bad value and indicates that EPD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.88, EPD is not doing good in the industry: 60.48% of the companies in the same industry are doing better.
EPD has a Quick Ratio of 0.88. 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 Quick ratio of 0.60. This is in the lower half of the industry: EPD underperforms 72.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
EPD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.75%.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
EPD shows a decrease in Revenue. In the last year, the revenue decreased by -6.42%.
EPD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.39% yearly.
EPS 1Y (TTM)-0.75%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%-6.15%
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-12.72%
3.2 Future
EPD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.19% yearly.
The Revenue is expected to decrease by -0.77% on average over the next years.
EPS Next Y0.96%
EPS Next 2Y4%
EPS Next 3Y4.26%
EPS Next 5Y5.19%
Revenue Next Year-7.62%
Revenue Next 2Y-2.3%
Revenue Next 3Y1.68%
Revenue Next 5Y-0.77%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.03, which indicates a correct valuation of EPD.
Compared to the rest of the industry, the Price/Earnings ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 65.71% of the companies listed in the same industry.
EPD is valuated cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.96, the valuation of EPD can be described as reasonable.
Based on the Price/Forward Earnings ratio, EPD is valued a bit cheaper than 69.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.08. EPD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EPD.
EPD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.32 | ||
| EV/EBITDA | 10.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)12.5
PEG (5Y)2.28
EPS Next 2Y4%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 6.86%, which is a nice return.
EPD's Dividend Yield is a higher than the industry average which is at 5.90.
EPD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
5.2 History
The dividend of EPD has a limited annual growth rate of 3.47%.
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)3.47%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
EPD pays out 80.91% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EPD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.91%
EPS Next 2Y4%
EPS Next 3Y4.26%
31.89
+0.17 (+0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.81%
Inst Owner Change0.66%
Ins Owners32.9%
Ins Owner Change0.3%
Market Cap69.05B
Revenue(TTM)53.00B
Net Income(TTM)5.73B
Analysts80.83
Price Target36.39 (14.11%)
Short Float %2.32%
Short Ratio8.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP80.91%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.43%
Min EPS beat(2)-10.12%
Max EPS beat(2)1.26%
EPS beat(4)2
Avg EPS beat(4)-3.47%
Min EPS beat(4)-10.12%
Max EPS beat(4)4.83%
EPS beat(8)3
Avg EPS beat(8)-2.21%
EPS beat(12)5
Avg EPS beat(12)-1.86%
EPS beat(16)7
Avg EPS beat(16)-1.56%
Revenue beat(2)0
Avg Revenue beat(2)-10.57%
Min Revenue beat(2)-20.95%
Max Revenue beat(2)-0.19%
Revenue beat(4)1
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-20.95%
Max Revenue beat(4)9.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)3
Avg Revenue beat(12)-3.69%
Revenue beat(16)7
Avg Revenue beat(16)1.73%
PT rev (1m)-0.04%
PT rev (3m)-0.74%
EPS NQ rev (1m)-2.05%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)-10.66%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-9.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.96 | ||
| P/S | 1.3 | ||
| P/FCF | 22.32 | ||
| P/OCF | 8.15 | ||
| P/B | 2.36 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 10.9 |
EPS(TTM)2.65
EY8.31%
EPS(NY)2.91
Fwd EY9.12%
FCF(TTM)1.43
FCFY4.48%
OCF(TTM)3.91
OCFY12.27%
SpS24.48
BVpS13.51
TBVpS8.93
PEG (NY)12.5
PEG (5Y)2.28
Graham Number28.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.36% | ||
| ROE | 19.59% | ||
| ROCE | 10.93% | ||
| ROIC | 8.63% | ||
| ROICexc | 8.66% | ||
| ROICexgc | 10.29% | ||
| OM | 12.94% | ||
| PM (TTM) | 10.81% | ||
| GM | 21.52% | ||
| FCFM | 5.84% |
ROA(3y)7.76%
ROA(5y)7.18%
ROE(3y)20.15%
ROE(5y)18.79%
ROIC(3y)8.99%
ROIC(5y)8.59%
ROICexc(3y)9.03%
ROICexc(5y)8.74%
ROICexgc(3y)10.8%
ROICexgc(5y)10.44%
ROCE(3y)11.38%
ROCE(5y)10.88%
ROICexgc growth 3Y1.46%
ROICexgc growth 5Y0.63%
ROICexc growth 3Y1.61%
ROICexc growth 5Y1.06%
OM growth 3Y-4.14%
OM growth 5Y-6.3%
PM growth 3Y-2.66%
PM growth 5Y-5.68%
GM growth 3Y-2.8%
GM growth 5Y-5.88%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 10.86 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 215.03% | ||
| Cap/Sales | 10.15% | ||
| Interest Coverage | 5.14 | ||
| Cash Conversion | 90.5% | ||
| Profit Quality | 53.97% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | N/A |
F-Score6
WACC7.94%
ROIC/WACC1.09
Cap/Depr(3y)140.35%
Cap/Depr(5y)136.99%
Cap/Sales(3y)6.01%
Cap/Sales(5y)7.11%
Profit Quality(3y)83.78%
Profit Quality(5y)91.54%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.75%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%-6.15%
EPS Next Y0.96%
EPS Next 2Y4%
EPS Next 3Y4.26%
EPS Next 5Y5.19%
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-12.72%
Revenue Next Year-7.62%
Revenue Next 2Y-2.3%
Revenue Next 3Y1.68%
Revenue Next 5Y-0.77%
EBIT growth 1Y-0.97%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year37.42%
EBIT Next 3Y14.68%
EBIT Next 5Y10%
FCF growth 1Y-37.04%
FCF growth 3Y-17.19%
FCF growth 5Y12.42%
OCF growth 1Y6.85%
OCF growth 3Y-1.58%
OCF growth 5Y4.47%
ENTERPRISE PRODUCTS PARTNERS / EPD FAQ
What is the fundamental rating for EPD stock?
ChartMill assigns a fundamental rating of 3 / 10 to EPD.
Can you provide the valuation status for ENTERPRISE PRODUCTS PARTNERS?
ChartMill assigns a valuation rating of 4 / 10 to ENTERPRISE PRODUCTS PARTNERS (EPD). This can be considered as Fairly Valued.
How profitable is ENTERPRISE PRODUCTS PARTNERS (EPD) stock?
ENTERPRISE PRODUCTS PARTNERS (EPD) has a profitability rating of 4 / 10.
What is the valuation of ENTERPRISE PRODUCTS PARTNERS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ENTERPRISE PRODUCTS PARTNERS (EPD) is 12.03 and the Price/Book (PB) ratio is 2.36.
Can you provide the dividend sustainability for EPD stock?
The dividend rating of ENTERPRISE PRODUCTS PARTNERS (EPD) is 8 / 10 and the dividend payout ratio is 80.91%.