ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPD - US2937921078
31.99 USD
-0.03 (-0.09%)
31.9978 USD
+0.01 (+0.02%)
Overall EPD gets a fundamental rating of 4 out of 10. We evaluated EPD against 208 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 is valued correctly, but it does not seem to be growing. 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.
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
With a decent Return On Assets value of 7.36%, EPD is doing good in the industry, outperforming 79.81% of the companies in the same industry.
EPD has a better Return On Equity (19.59%) than 87.98% of its industry peers.
EPD has a Return On Invested Capital of 8.63%. This is in the better half of the industry: EPD outperforms 78.85% 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 21.00%.
| 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
The Profit Margin of EPD (10.81%) is better than 60.58% of its industry peers.
In the last couple of years the Profit Margin of EPD has declined.
EPD has a Operating Margin (12.94%) which is in line with its industry peers.
EPD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 21.52%, EPD is doing worse than 66.35% 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
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.
The debt/assets ratio for EPD is higher compared to a year ago.
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.
EPD has a Debt to FCF ratio (10.86) which 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.
With a Debt to Equity ratio value of 1.06, EPD is not doing good in the industry: 71.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 10.86 | ||
| Altman-Z | N/A |
ROIC/WACC1.1
WACC7.87%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EPD may have some problems paying its short term obligations.
With a Current ratio value of 0.88, EPD is not doing good in the industry: 62.02% 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 worse Quick ratio (0.60) than 72.60% 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.
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.
The Revenue has decreased by -6.42% in the past year.
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
The Earnings Per Share is expected to grow by 5.19% 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 2.47% yearly.
EPS Next Y-0.99%
EPS Next 2Y3.31%
EPS Next 3Y3.96%
EPS Next 5Y5.19%
Revenue Next Year-8.1%
Revenue Next 2Y-2.49%
Revenue Next 3Y1.52%
Revenue Next 5Y2.47%
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
Based on the Price/Earnings ratio of 12.07, the valuation of EPD can be described as correct.
Based on the Price/Earnings ratio, EPD is valued a bit cheaper than 64.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.26, EPD is valued rather cheaply.
The Price/Forward Earnings ratio is 11.14, which indicates a very decent valuation of EPD.
Based on the Price/Forward Earnings ratio, EPD is valued a bit cheaper than the industry average as 67.79% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EPD to the average of the S&P500 Index (23.68), we can say EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPD is valued a bit more expensive than the industry average as 60.58% of the companies are valued more cheaply.
EPD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.37 | ||
| EV/EBITDA | 10.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.29
EPS Next 2Y3.31%
EPS Next 3Y3.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.77%, EPD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.83, 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.77% |
5.2 History
The dividend of EPD has a limited annual growth rate of 3.47%.
EPD has been paying a dividend for at least 10 years, so it has 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.
EPD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.91%
EPS Next 2Y3.31%
EPS Next 3Y3.96%
31.99
-0.03 (-0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.36%
Inst Owner Change0.54%
Ins Owners32.93%
Ins Owner Change0.2%
Market Cap69.20B
Revenue(TTM)53.00B
Net Income(TTM)5.73B
Analysts80.83
Price Target36.33 (13.57%)
Short Float %2.03%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.77% |
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)-0.18%
PT rev (3m)-0.56%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-4.82%
EPS NY rev (1m)-1.94%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)-2.28%
Revenue NQ rev (3m)-15.71%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-4.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 11.14 | ||
| P/S | 1.31 | ||
| P/FCF | 22.37 | ||
| P/OCF | 8.17 | ||
| P/B | 2.37 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 10.96 |
EPS(TTM)2.65
EY8.28%
EPS(NY)2.87
Fwd EY8.97%
FCF(TTM)1.43
FCFY4.47%
OCF(TTM)3.92
OCFY12.24%
SpS24.5
BVpS13.53
TBVpS8.94
PEG (NY)N/A
PEG (5Y)2.29
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
WACC7.87%
ROIC/WACC1.1
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 Y-0.99%
EPS Next 2Y3.31%
EPS Next 3Y3.96%
EPS Next 5Y5.19%
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-12.72%
Revenue Next Year-8.1%
Revenue Next 2Y-2.49%
Revenue Next 3Y1.52%
Revenue Next 5Y2.47%
EBIT growth 1Y-0.97%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year35.67%
EBIT Next 3Y14.25%
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 4 / 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 5 / 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 12.07 and the Price/Book (PB) ratio is 2.37.
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%.