ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
NYSE:EPD - New York Stock Exchange, Inc. - US2937921078 - Currency: USD
We assign a fundamental rating of 4 out of 10 to EPD. EPD was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of EPD while its profitability can be described as average. EPD has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years EPD has 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 (7.66%) than 75.83% of its industry peers.
EPD's Return On Equity of 19.95% is amongst the best of the industry. EPD outperforms 84.83% of its industry peers.
EPD has a Return On Invested Capital of 9.04%. This is in the better half of the industry: EPD outperforms 72.04% 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 23.70%.
The last Return On Invested Capital (9.04%) for EPD is above the 3 year average (8.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 19.95% | ||
| ROIC | 9.04% |
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 (10.16%) which is in line with its industry peers.
EPD's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.17%, EPD perfoms like the industry average, outperforming 42.65% of the companies in the same industry.
In the last couple of years the Operating Margin of EPD has declined.
Looking at the Gross Margin, with a value of 19.82%, EPD is doing worse than 66.35% of the companies in the same industry.
In the last couple of years the Gross Margin of EPD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.17% | ||
| PM (TTM) | 10.16% | ||
| GM | 19.82% |
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
EPD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
EPD has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as EPD would need 8.40 years to pay back of all of its debts.
EPD's Debt to FCF ratio of 8.40 is in line compared to the rest of the industry. EPD outperforms 53.55% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that EPD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.01, EPD is doing worse than 69.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | N/A |
ROIC/WACC1.13
WACC7.98%
2.3 Liquidity
EPD has a Current Ratio of 0.86. 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's Current ratio of 0.86 is on the low side compared to the rest of the industry. EPD is outperformed by 65.88% of its industry peers.
EPD has a Quick Ratio of 0.86. 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 (0.64) than 72.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
EPD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.71%.
Measured over the past 5 years, EPD shows a small growth in Earnings Per Share. The EPS has been growing by 5.28% on average per year.
EPD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.31%.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
EPS 1Y (TTM)4.71%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)9.31%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%4.45%
3.2 Future
The Earnings Per Share is expected to grow by 4.06% on average over the next years.
EPD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.67% yearly.
EPS Next Y5.68%
EPS Next 2Y6.08%
EPS Next 3Y5.46%
EPS Next 5Y4.06%
Revenue Next Year7.69%
Revenue Next 2Y8.53%
Revenue Next 3Y9.84%
Revenue Next 5Y2.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
EPD is valuated reasonably with a Price/Earnings ratio of 11.78.
63.98% of the companies in the same industry are more expensive than EPD, based on the Price/Earnings ratio.
EPD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.28.
A Price/Forward Earnings ratio of 10.39 indicates a reasonable valuation of EPD.
64.93% of the companies in the same industry are more expensive than EPD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 10.39 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EPD.
The rest of the industry has a similar Price/Free Cash Flow ratio as EPD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | 10.57 |
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)2.07
PEG (5Y)2.23
EPS Next 2Y6.08%
EPS Next 3Y5.46%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 6.88%, which is a nice return.
EPD's Dividend Yield is a higher than the industry average which is at 6.66.
Compared to an average S&P500 Dividend Yield of 2.42, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
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
78.80% of the earnings are spent on dividend by EPD. This is not a sustainable payout ratio.
EPD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP78.8%
EPS Next 2Y6.08%
EPS Next 3Y5.46%
31.44
+0.27 (+0.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.76%
Inst Owner Change-0.15%
Ins Owners32.89%
Ins Owner Change7.22%
Market Cap68.09B
Analysts81.74
Price Target37.39 (18.92%)
Short Float %1.79%
Short Ratio6.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP78.8%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.51%
Min EPS beat(2)-9.84%
Max EPS beat(2)4.83%
EPS beat(4)1
Avg EPS beat(4)-2.92%
Min EPS beat(4)-9.84%
Max EPS beat(4)4.83%
EPS beat(8)2
Avg EPS beat(8)-2.27%
EPS beat(12)5
Avg EPS beat(12)-1.15%
EPS beat(16)6
Avg EPS beat(16)-1.1%
Revenue beat(2)1
Avg Revenue beat(2)4.17%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)9.05%
Revenue beat(4)1
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)9.05%
Revenue beat(8)3
Avg Revenue beat(8)0.03%
Revenue beat(12)5
Avg Revenue beat(12)1.14%
Revenue beat(16)9
Avg Revenue beat(16)5.96%
PT rev (1m)-1.24%
PT rev (3m)-0.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.01%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 10.39 | ||
| P/S | 1.2 | ||
| P/FCF | 18.11 | ||
| P/OCF | 8.19 | ||
| P/B | 2.35 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)2.67
EY8.49%
EPS(NY)3.03
Fwd EY9.63%
FCF(TTM)1.74
FCFY5.52%
OCF(TTM)3.84
OCFY12.22%
SpS26.26
BVpS13.37
TBVpS8.91
PEG (NY)2.07
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 19.95% | ||
| ROCE | 11.44% | ||
| ROIC | 9.04% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 10.8% | ||
| OM | 12.17% | ||
| PM (TTM) | 10.16% | ||
| GM | 19.82% | ||
| FCFM | 6.61% |
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%
ROICexcg growth 3Y1.46%
ROICexcg 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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 8.4 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 187.54% | ||
| Cap/Sales | 8.02% | ||
| Interest Coverage | 5.18 | ||
| Cash Conversion | 88.92% | ||
| Profit Quality | 65.05% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | N/A |
F-Score6
WACC7.98%
ROIC/WACC1.13
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)4.71%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%-3.03%
EPS Next Y5.68%
EPS Next 2Y6.08%
EPS Next 3Y5.46%
EPS Next 5Y4.06%
Revenue 1Y (TTM)9.31%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%4.45%
Revenue Next Year7.69%
Revenue Next 2Y8.53%
Revenue Next 3Y9.84%
Revenue Next 5Y2.67%
EBIT growth 1Y5.1%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year41.21%
EBIT Next 3Y15.26%
EBIT Next 5Y10.37%
FCF growth 1Y-27.84%
FCF growth 3Y-17.19%
FCF growth 5Y12.42%
OCF growth 1Y11.25%
OCF growth 3Y-1.58%
OCF growth 5Y4.47%