ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - NYSE:EPD - US2937921078
32.07 USD
+0.3 (+0.94%)
32 USD
-0.07 (-0.22%)
We assign a fundamental rating of 4 out of 10 to EPD. EPD was compared to 210 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. Finally EPD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EPD was profitable.
EPD had a positive operating cash flow in the past year.
Each year in the past 5 years EPD has been profitable.
EPD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.50%, EPD is doing good in the industry, outperforming 75.71% of the companies in the same industry.
With an excellent Return On Equity value of 19.95%, EPD belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Return On Invested Capital of EPD (8.77%) is better than 74.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPD is significantly below the industry average of 21.76%.
| 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
Looking at the Profit Margin, with a value of 10.61%, EPD is in line with its industry, outperforming 56.67% of the companies in the same industry.
In the last couple of years the Profit Margin of EPD has declined.
The Operating Margin of EPD (12.71%) is comparable to the rest of the industry.
EPD's Operating Margin has declined in the last couple of years.
The Gross Margin of EPD (20.83%) is worse than 65.71% of its industry peers.
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.
EPD has about the same amout of shares outstanding than it did 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 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.
EPD has a Debt to FCF ratio (7.78) which is comparable to the rest of the industry.
EPD has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
EPD has a worse Debt to Equity ratio (1.07) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.11
WACC7.88%
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.
EPD has a Quick ratio of 0.69. This is in the lower half of the industry: EPD underperforms 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
EPD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.67%.
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.
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
Based on estimates for the next years, EPD will show a small growth in Earnings Per Share. The EPS will grow by 4.94% on average per year.
EPD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.83% yearly.
EPS Next Y2.37%
EPS Next 2Y4.67%
EPS Next 3Y4.79%
EPS Next 5Y4.94%
Revenue Next Year-3.73%
Revenue Next 2Y2.35%
Revenue Next 3Y5.7%
Revenue Next 5Y-0.83%
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
With a Price/Earnings ratio of 11.92, the valuation of EPD can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, EPD is valued rather cheaply.
A Price/Forward Earnings ratio of 10.88 indicates a reasonable valuation of EPD.
Based on the Price/Forward Earnings ratio, EPD is valued a bit cheaper than 64.76% of the companies in the same industry.
EPD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.88 |
4.2 Price Multiples
EPD's Enterprise Value to EBITDA ratio is in line with 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 | 16.49 | ||
| EV/EBITDA | 10.69 |
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)5.03
PEG (5Y)2.26
EPS Next 2Y4.67%
EPS Next 3Y4.79%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 6.83%, which is a nice return.
EPD's Dividend Yield is a higher than the industry average which is at 6.18.
EPD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
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 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
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 2Y4.67%
EPS Next 3Y4.79%
32.07
+0.3 (+0.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.79%
Inst Owner Change-0.85%
Ins Owners32.89%
Ins Owner Change0.07%
Market Cap69.44B
Analysts80.83
Price Target36.54 (13.94%)
Short Float %2.14%
Short Ratio7.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
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)-2.29%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-3.47%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-3.57%
Revenue NQ rev (1m)3.9%
Revenue NQ rev (3m)-13.51%
Revenue NY rev (1m)-6%
Revenue NY rev (3m)-10.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.88 | ||
| P/S | 1.27 | ||
| P/FCF | 16.49 | ||
| P/OCF | 7.89 | ||
| P/B | 2.38 | ||
| P/tB | 3.56 | ||
| EV/EBITDA | 10.69 |
EPS(TTM)2.69
EY8.39%
EPS(NY)2.95
Fwd EY9.19%
FCF(TTM)1.94
FCFY6.06%
OCF(TTM)4.07
OCFY12.68%
SpS25.29
BVpS13.45
TBVpS9.01
PEG (NY)5.03
PEG (5Y)2.26
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%
ROICexcg growth 3Y1.46%
ROICexcg 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
WACC7.88%
ROIC/WACC1.11
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 Y2.37%
EPS Next 2Y4.67%
EPS Next 3Y4.79%
EPS Next 5Y4.94%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-15.72%
Revenue Next Year-3.73%
Revenue Next 2Y2.35%
Revenue Next 3Y5.7%
Revenue Next 5Y-0.83%
EBIT growth 1Y2.29%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year38.32%
EBIT Next 3Y14.78%
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%