ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPD - US2937921078
32.61 USD
0 (0%)
32.7 USD
+0.09 (+0.28%)
EPD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 209 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 valued correctly, but it does not seem to be growing. 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.
EPD had positive earnings in each of the past 5 years.
Each year in the past 5 years EPD had a positive operating cash flow.
1.2 Ratios
EPD's Return On Assets of 7.36% is fine compared to the rest of the industry. EPD outperforms 79.43% of its industry peers.
Looking at the Return On Equity, with a value of 19.59%, EPD belongs to the top of the industry, outperforming 87.56% of the companies in the same industry.
EPD's Return On Invested Capital of 8.63% is fine compared to the rest of the industry. EPD outperforms 78.47% of its industry peers.
EPD had an Average Return On Invested Capital over the past 3 years of 8.99%. This is significantly below the industry average of 21.47%.
| 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
Looking at the Profit Margin, with a value of 10.81%, EPD is in line with its industry, outperforming 59.81% of the companies in the same industry.
EPD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.94%, EPD is in line with its industry, outperforming 44.98% of the companies in the same industry.
EPD's Operating Margin has declined in the last couple of years.
EPD has a Gross Margin of 21.52%. This is in the lower half of the industry: EPD underperforms 65.07% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EPD is still creating some value.
The number of shares outstanding for EPD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, EPD has less shares outstanding
EPD has a worse debt/assets ratio than last year.
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.
With a Debt to FCF ratio value of 10.86, EPD perfoms like the industry average, outperforming 54.07% of the companies in the same 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 70.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 10.86 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC7.96%
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.
EPD has a Current ratio of 0.88. This is in the lower half of the industry: EPD underperforms 61.24% of its industry peers.
A Quick Ratio of 0.60 indicates that EPD may have some problems paying its short term obligations.
EPD's Quick ratio of 0.60 is on the low side compared to the rest of the industry. EPD is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for EPD have decreased by -0.75% in the last year.
EPD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
EPD shows a decrease in Revenue. In the last year, the revenue decreased by -6.42%.
Measured over the past years, EPD shows a quite strong growth in Revenue. The Revenue has been growing by 11.39% on average per year.
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
Based on estimates for the next years, EPD will show a small growth in Earnings Per Share. The EPS will grow by 5.19% on average per year.
The Revenue is expected to grow by 2.47% 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 5Y2.47%
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
Based on the Price/Earnings ratio of 12.31, the valuation of EPD can be described as correct.
68.42% of the companies in the same industry are more expensive than EPD, based on the Price/Earnings ratio.
EPD is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.21 indicates a reasonable valuation of EPD.
EPD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPD is cheaper than 69.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. EPD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPD is on the same level as its industry peers.
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 | 22.81 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EPD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)12.79
PEG (5Y)2.33
EPS Next 2Y4%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 6.69%, which is a nice return.
Compared to an average industry Dividend Yield of 5.80, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.47%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
80.91% 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.
DP80.91%
EPS Next 2Y4%
EPS Next 3Y4.26%
32.61
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.36%
Inst Owner Change0.56%
Ins Owners32.93%
Ins Owner Change0.2%
Market Cap70.55B
Revenue(TTM)53.00B
Net Income(TTM)5.73B
Analysts80.83
Price Target36.33 (11.41%)
Short Float %2.14%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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)-2.83%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)-15.8%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 11.21 | ||
| P/S | 1.33 | ||
| P/FCF | 22.81 | ||
| P/OCF | 8.33 | ||
| P/B | 2.41 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)2.65
EY8.13%
EPS(NY)2.91
Fwd EY8.92%
FCF(TTM)1.43
FCFY4.38%
OCF(TTM)3.92
OCFY12.01%
SpS24.5
BVpS13.53
TBVpS8.94
PEG (NY)12.79
PEG (5Y)2.33
Graham Number28.4
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
WACC7.96%
ROIC/WACC1.08
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 5Y2.47%
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 12.31 and the Price/Book (PB) ratio is 2.41.
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%.