ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - NYSE:EPD - US2937921078
31.17 USD
+0.18 (+0.58%)
31.21 USD
+0.04 (+0.13%)
EPD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 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 has a valuation in line with the averages, 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.
In the past 5 years EPD always reported a positive cash flow from operatings.
1.2 Ratios
EPD has a Return On Assets of 7.50%. This is in the better half of the industry: EPD outperforms 78.47% of its industry peers.
The Return On Equity of EPD (19.95%) is better than 86.60% of its industry peers.
EPD has a Return On Invested Capital of 8.77%. This is in the better half of the industry: EPD outperforms 76.56% 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 21.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 19.95% | ||
| ROIC | 8.77% |
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 (10.61%) is comparable to the rest of the industry.
EPD's Profit Margin has declined in the last couple of years.
EPD has a Operating Margin (12.71%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EPD has declined.
Looking at the Gross Margin, with a value of 20.83%, EPD is doing worse than 65.07% of the companies in the same industry.
In the last couple of years the Gross Margin of EPD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.71% | ||
| PM (TTM) | 10.61% | ||
| GM | 20.83% |
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.
The number of shares outstanding for EPD has been reduced compared to 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 7.78, which is on the high side as it means it would take EPD, 7.78 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.78, EPD perfoms like the industry average, outperforming 55.02% of the companies in the same industry.
EPD has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
EPD's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. EPD is outperformed by 70.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.13
WACC7.76%
2.3 Liquidity
EPD has a Current Ratio of 0.96. 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 (0.96) which is in line with its industry peers.
EPD has a Quick Ratio of 0.96. This is a bad value and indicates that EPD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.69, EPD is doing worse than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.67% over the past year.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
EPD shows a decrease in Revenue. In the last year, the revenue decreased by -0.20%.
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)2.67%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%3.13%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-15.72%
3.2 Future
EPD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.94% yearly.
EPD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.83% yearly.
EPS Next Y1.18%
EPS Next 2Y4.06%
EPS Next 3Y4.46%
EPS Next 5Y4.94%
Revenue Next Year-7.38%
Revenue Next 2Y-2.78%
Revenue Next 3Y1.36%
Revenue Next 5Y-0.83%
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
With a Price/Earnings ratio of 11.59, the valuation of EPD can be described as very reasonable.
69.86% of the companies in the same industry are more expensive than EPD, based on the Price/Earnings ratio.
EPD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
EPD is valuated reasonably with a Price/Forward Earnings ratio of 10.70.
Based on the Price/Forward Earnings ratio, EPD is valued a bit cheaper than the industry average as 67.94% of the companies are valued more expensively.
EPD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
EPD's Enterprise Value to EBITDA is on the same level as the industry average.
EPD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 10.55 |
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)9.79
PEG (5Y)2.2
EPS Next 2Y4.06%
EPS Next 3Y4.46%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 7.04%, which is a nice return.
Compared to an average industry Dividend Yield of 6.15, EPD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
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
79.13% 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.
DP79.13%
EPS Next 2Y4.06%
EPS Next 3Y4.46%
31.17
+0.18 (+0.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.81%
Inst Owner Change-0.03%
Ins Owners32.9%
Ins Owner Change0.2%
Market Cap67.49B
Revenue(TTM)54.76B
Net Income(TTM)5.81B
Analysts80.83
Price Target36.41 (16.81%)
Short Float %2.08%
Short Ratio8.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP79.13%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.29%
Min EPS beat(2)-9.84%
Max EPS beat(2)1.26%
EPS beat(4)2
Avg EPS beat(4)-1.64%
Min EPS beat(4)-9.84%
Max EPS beat(4)4.83%
EPS beat(8)3
Avg EPS beat(8)-1.72%
EPS beat(12)5
Avg EPS beat(12)-1.13%
EPS beat(16)7
Avg EPS beat(16)-0.96%
Revenue beat(2)1
Avg Revenue beat(2)-5.95%
Min Revenue beat(2)-20.95%
Max Revenue beat(2)9.05%
Revenue beat(4)1
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-20.95%
Max Revenue beat(4)9.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-3.02%
Revenue beat(16)8
Avg Revenue beat(16)3.21%
PT rev (1m)-0.35%
PT rev (3m)-1.55%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-2.94%
Revenue NQ rev (1m)-15.24%
Revenue NQ rev (3m)-20.46%
Revenue NY rev (1m)-3.79%
Revenue NY rev (3m)-11.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.7 | ||
| P/S | 1.23 | ||
| P/FCF | 16.03 | ||
| P/OCF | 7.67 | ||
| P/B | 2.32 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)2.69
EY8.63%
EPS(NY)2.91
Fwd EY9.35%
FCF(TTM)1.94
FCFY6.24%
OCF(TTM)4.07
OCFY13.05%
SpS25.29
BVpS13.45
TBVpS9.01
PEG (NY)9.79
PEG (5Y)2.2
Graham Number28.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 19.95% | ||
| ROCE | 11.1% | ||
| ROIC | 8.77% | ||
| ROICexc | 8.89% | ||
| ROICexgc | 10.53% | ||
| OM | 12.71% | ||
| PM (TTM) | 10.61% | ||
| GM | 20.83% | ||
| FCFM | 7.69% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.78 | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 186.6% | ||
| Cap/Sales | 8.39% | ||
| Interest Coverage | 5.3 | ||
| Cash Conversion | 93.47% | ||
| Profit Quality | 72.5% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | N/A |
F-Score6
WACC7.76%
ROIC/WACC1.13
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)2.67%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%3.13%
EPS Next Y1.18%
EPS Next 2Y4.06%
EPS Next 3Y4.46%
EPS Next 5Y4.94%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-15.72%
Revenue Next Year-7.38%
Revenue Next 2Y-2.78%
Revenue Next 3Y1.36%
Revenue Next 5Y-0.83%
EBIT growth 1Y2.29%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year37.42%
EBIT Next 3Y14.68%
EBIT Next 5Y10.11%
FCF growth 1Y-8.34%
FCF growth 3Y-17.19%
FCF growth 5Y12.42%
OCF growth 1Y21.28%
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 5 / 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 11.59 and the Price/Book (PB) ratio is 2.32.
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 79.13%.