ENTERPRISE PRODUCTS PARTNERS (EPD)
US2937921078
Taking everything into account, EPD scores 4 out of 10 in our fundamental rating. EPD was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. EPD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year EPD had a positive cash flow from operations.
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
The Return On Assets of EPD (7.71%) is better than 65.69% of its industry peers.
EPD has a Return On Equity of 20.39%. This is in the better half of the industry: EPD outperforms 73.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.87%, EPD is in the better half of the industry, outperforming 62.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EPD is significantly below the industry average of 29.03%.
The 3 year average ROIC (8.73%) for EPD is below the current ROIC(8.87%), indicating increased profibility in the last year.
| 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
EPD has a Profit Margin (10.22%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EPD has remained more or less at the same level.
EPD's Operating Margin of 12.23% is on the low side compared to the rest of the industry. EPD is outperformed by 63.73% of its industry peers.
EPD's Operating Margin has been stable in the last couple of years.
The Gross Margin of EPD (19.53%) is worse than 67.65% of its industry peers.
EPD's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPD 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.
The debt/assets ratio for EPD has been reduced compared to a year ago.
2.2 Solvency
EPD has a debt to FCF ratio of 8.80. This is a slightly negative value and a sign of low solvency as EPD would need 8.80 years to pay back of all of its debts.
EPD has a Debt to FCF ratio (8.80) which is in line with its industry peers.
EPD has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.08, EPD is doing worse than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.14
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.07 indicates that EPD should not have too much problems paying its short term obligations.
The Current ratio of EPD (1.07) is comparable to the rest of the industry.
A Quick Ratio of 0.83 indicates that EPD may have some problems paying its short term obligations.
EPD has a Quick ratio of 0.83. This is in the lower half of the industry: EPD underperforms 64.22% 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.
Looking at the last year, EPD shows a quite strong growth in Revenue. The Revenue has grown by 16.20% in the last year.
Measured over the past years, EPD shows a small growth in Revenue. The Revenue has been growing by 6.36% on average per year.
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.
The Revenue is expected to grow by 4.86% on average over the next years.
EPS Next Y7.68%
EPS Next 2Y6.99%
EPS Next 3Y6.39%
EPS Next 5Y3.75%
Revenue Next Year16.86%
Revenue Next 2Y11.14%
Revenue Next 3Y12.57%
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
A Price/Earnings ratio of 11.79 indicates a reasonable valuation of EPD.
Compared to the rest of the industry, the Price/Earnings ratio of EPD is on the same level as its industry peers.
When comparing the Price/Earnings ratio of EPD to the average of the S&P500 Index (27.54), we can say EPD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.92, the valuation of EPD can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 61.76% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EPD to the average of the S&P500 Index (23.99), we can say EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPD is valued a bit more expensive than 61.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.82 | ||
| EV/EBITDA | 10.6 |
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)1.54
PEG (5Y)2.87
EPS Next 2Y6.99%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 6.88%, which is a nice return.
Compared to an average industry Dividend Yield of 7.14, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
5.2 History
The dividend of EPD has a limited annual growth rate of 2.94%.
EPD has been paying a dividend for at least 10 years, so it has a reliable track record.
EPD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.94%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
EPD pays out 77.02% 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.
DP77.02%
EPS Next 2Y6.99%
EPS Next 3Y6.39%
ENTERPRISE PRODUCTS PARTNERS
NYSE:EPD (12/24/2024, 8:08:34 PM)
After market: 31.74 +0.25 (+0.79%)31.49
+0.48 (+1.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.82%
Inst Owner Change1.6%
Ins Owners32.76%
Ins Owner Change-0.16%
Market Cap68.26B
Analysts85.22
Price Target35.53 (12.83%)
Short Float %1.57%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
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)2.99%
PT rev (3m)3.61%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 10.92 | ||
| P/S | 1.21 | ||
| P/FCF | 18.82 | ||
| P/OCF | 8.4 | ||
| P/B | 2.4 | ||
| P/tB | 3.56 | ||
| EV/EBITDA | 10.6 |
EPS(TTM)2.67
EY8.48%
EPS(NY)2.88
Fwd EY9.16%
FCF(TTM)1.67
FCFY5.31%
OCF(TTM)3.75
OCFY11.9%
SpS26.13
BVpS13.1
TBVpS8.84
PEG (NY)1.54
PEG (5Y)2.87
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
WACC7.81%
ROIC/WACC1.14
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 Year16.86%
Revenue Next 2Y11.14%
Revenue Next 3Y12.57%
Revenue Next 5Y4.86%
EBIT growth 1Y9.54%
EBIT growth 3Y5.7%
EBIT growth 5Y5.56%
EBIT Next Year42.74%
EBIT Next 3Y16.08%
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%