ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPD - US2937921078
31.99 USD
-0.54 (-1.66%)
32.11 USD
+0.12 (+0.38%)
We assign a fundamental rating of 3 out of 10 to EPD. EPD was compared to 209 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 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.
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
Looking at the Return On Assets, with a value of 7.36%, EPD is in the better half of the industry, outperforming 79.43% of the companies in the same industry.
EPD has a better Return On Equity (19.59%) than 87.56% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for EPD 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.
In the last couple of years the Profit Margin of EPD has declined.
EPD's Operating Margin of 12.94% is in line compared to the rest of the industry. EPD outperforms 44.98% of its industry peers.
EPD's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 21.52%, EPD is not doing good in the industry: 65.07% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, EPD has about the same amount of shares outstanding.
Compared to 5 years ago, EPD has less shares outstanding
The debt/assets ratio for EPD is higher compared to a year ago.
2.2 Solvency
EPD has a debt to FCF ratio of 10.86. This is a negative value and a sign of low solvency as EPD would need 10.86 years to pay back of 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 54.07% of the companies in the same industry.
EPD has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external 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/WACC1.09
WACC7.89%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EPD may have some problems paying its short term obligations.
EPD's Current ratio of 0.88 is on the low side compared to the rest of the industry. EPD is outperformed by 61.24% of its industry peers.
A Quick Ratio of 0.60 indicates that EPD may have some problems paying its short term obligations.
The Quick ratio of EPD (0.60) is worse than 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.
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.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
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 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.
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 the industry average as 67.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.15, EPD is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.99, the valuation of EPD can be described as very reasonable.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
EPD's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 22.37 | ||
| EV/EBITDA | 10.96 |
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)12.54
PEG (5Y)2.29
EPS Next 2Y4%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 6.70%, which is a nice return.
Compared to an average industry Dividend Yield of 5.96, EPD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
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
80.91% of the earnings are spent on dividend by EPD. 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 2Y4%
EPS Next 3Y4.26%
31.99
-0.54 (-1.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.81%
Inst Owner Change0.56%
Ins Owners32.9%
Ins Owner Change0.2%
Market Cap69.20B
Revenue(TTM)53.00B
Net Income(TTM)5.73B
Analysts80.83
Price Target36.39 (13.75%)
Short Float %2.14%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
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 | 12.07 | ||
| Fwd PE | 10.99 | ||
| 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)2.91
Fwd EY9.1%
FCF(TTM)1.43
FCFY4.47%
OCF(TTM)3.92
OCFY12.24%
SpS24.5
BVpS13.53
TBVpS8.94
PEG (NY)12.54
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
WACC7.89%
ROIC/WACC1.09
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 12.07 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%.