ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPD - US2937921078
31.73 USD
-0.43 (-1.34%)
31.7599 USD
+0.03 (+0.09%)
We assign a fundamental rating of 4 out of 10 to EPD. EPD was compared to 208 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
In the past year EPD was profitable.
In the past year EPD had a positive cash flow from operations.
Each year in the past 5 years EPD has been profitable.
In the past 5 years EPD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EPD (7.36%) is better than 78.85% of its industry peers.
EPD has a Return On Equity of 19.59%. This is amongst the best in the industry. EPD outperforms 87.98% 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 78.85% 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 21.28%.
| 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 60.10% of its industry peers.
EPD's Profit Margin has declined in the last couple of years.
EPD has a Operating Margin (12.94%) which is in line with its industry peers.
In the last couple of years the Operating Margin of EPD has declined.
The Gross Margin of EPD (21.52%) is worse than 65.38% of its industry peers.
In the last couple of years the Gross Margin of EPD has declined.
| 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.
Compared to 1 year ago, EPD has about the same amount of shares outstanding.
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.
Looking at the Debt to FCF ratio, with a value of 10.86, EPD is in line with its industry, outperforming 53.85% 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.
The Debt to Equity ratio of EPD (1.06) is worse than 69.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 10.86 | ||
| Altman-Z | N/A |
ROIC/WACC1.12
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EPD may have some problems paying its short term obligations.
EPD has a worse Current ratio (0.88) than 61.54% of its industry peers.
A Quick Ratio of 0.60 indicates that EPD may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, EPD is not doing good in the industry: 71.15% of the companies in the same industry are doing better.
| 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%.
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%.
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.
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-1.44%
EPS Next 2Y3.22%
EPS Next 3Y4.05%
EPS Next 5Y5.19%
Revenue Next Year-8.07%
Revenue Next 2Y-2.56%
Revenue Next 3Y1.07%
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.
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
A Price/Earnings ratio of 11.97 indicates a reasonable valuation of EPD.
65.87% 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 27.17, which is the current average of the S&P500 Index.
EPD is valuated reasonably with a Price/Forward Earnings ratio of 11.07.
69.71% 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 23.79, EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPD is valued a bit more expensive than the industry average as 60.10% of the companies are valued more cheaply.
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 | 22.19 | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.27
EPS Next 2Y3.22%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.80%, EPD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.96, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
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 2Y3.22%
EPS Next 3Y4.05%
31.73
-0.43 (-1.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.37%
Inst Owner Change-0.06%
Ins Owners32.94%
Ins Owner Change-0.06%
Market Cap68.64B
Revenue(TTM)53.00B
Net Income(TTM)5.73B
Analysts80.83
Price Target36.39 (14.69%)
Short Float %2.01%
Short Ratio7.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP80.91%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
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)-1.51%
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%
PT rev (3m)-0.04%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-2.8%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 11.07 | ||
| P/S | 1.3 | ||
| P/FCF | 22.19 | ||
| P/OCF | 8.1 | ||
| P/B | 2.35 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 11 |
EPS(TTM)2.65
EY8.35%
EPS(NY)2.87
Fwd EY9.03%
FCF(TTM)1.43
FCFY4.51%
OCF(TTM)3.92
OCFY12.34%
SpS24.5
BVpS13.53
TBVpS8.94
PEG (NY)N/A
PEG (5Y)2.27
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
WACC7.72%
ROIC/WACC1.12
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-1.44%
EPS Next 2Y3.22%
EPS Next 3Y4.05%
EPS Next 5Y5.19%
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-12.72%
Revenue Next Year-8.07%
Revenue Next 2Y-2.56%
Revenue Next 3Y1.07%
Revenue Next 5Y2.47%
EBIT growth 1Y-0.97%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year35.57%
EBIT Next 3Y14.26%
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.
What is the valuation status for EPD stock?
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.
Can you provide the PE and PB ratios for EPD stock?
The Price/Earnings (PE) ratio for ENTERPRISE PRODUCTS PARTNERS (EPD) is 11.97 and the Price/Book (PB) ratio is 2.35.
Can you provide the expected EPS growth for EPD stock?
The Earnings per Share (EPS) of ENTERPRISE PRODUCTS PARTNERS (EPD) is expected to decline by -1.44% in the next year.