ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPD - US2937921078
32.61 USD
0 (0%)
32.7 USD
+0.09 (+0.28%)
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. 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 on the other hand it scores bad on growth. 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.
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 79.43% of its industry peers.
EPD's Return On Equity of 19.59% is amongst the best of the industry. EPD outperforms 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.
EPD had an Average Return On Invested Capital over the past 3 years of 8.99%. This is significantly below the industry average of 21.47%.
| 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
The Profit Margin of EPD (10.81%) 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 (12.94%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EPD has declined.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPD is creating some value.
EPD has about the same amout of shares outstanding than it did 1 year ago.
EPD has less shares outstanding than it did 5 years ago.
EPD has a worse debt/assets ratio than last year.
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: 70.81% 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/WACC1.08
WACC7.96%
2.3 Liquidity
EPD has a Current 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 Current ratio (0.88) than 61.24% 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: 72.73% 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
The earnings per share for EPD have decreased by -0.75% in the last year.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
The Revenue has decreased by -6.42% in the past year.
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)-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
Based on estimates for the next years, EPD will show a small growth in Earnings Per Share. The EPS will grow by 5.19% on average per year.
The Revenue is expected to grow by 2.47% on average over the next years.
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
EPD is valuated correctly with a Price/Earnings ratio of 12.31.
Compared to the rest of the industry, the Price/Earnings ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 68.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. EPD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.21, the valuation of EPD can be described as reasonable.
69.38% of the companies in the same industry are more expensive than EPD, based on the Price/Forward Earnings ratio.
EPD is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EPD.
The rest of the industry has a similar Price/Free Cash Flow ratio as EPD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.81 | ||
| EV/EBITDA | 11.1 |
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)12.79
PEG (5Y)2.33
EPS Next 2Y4%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.69%, EPD is a good candidate for dividend investing.
EPD's Dividend Yield is a higher than the industry average which is at 5.91.
Compared to an average S&P500 Dividend Yield of 2.32, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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
80.91% of the earnings are spent on dividend by EPD. 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 2Y4%
EPS Next 3Y4.26%
32.61
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.36%
Inst Owner Change0.56%
Ins Owners32.93%
Ins Owner Change0.2%
Market Cap70.55B
Revenue(TTM)53.00B
Net Income(TTM)5.73B
Analysts80.83
Price Target36.33 (11.41%)
Short Float %2.14%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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 | 12.31 | ||
| Fwd PE | 11.21 | ||
| P/S | 1.33 | ||
| P/FCF | 22.81 | ||
| P/OCF | 8.33 | ||
| P/B | 2.41 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)2.65
EY8.13%
EPS(NY)2.91
Fwd EY8.92%
FCF(TTM)1.43
FCFY4.38%
OCF(TTM)3.92
OCFY12.01%
SpS24.5
BVpS13.53
TBVpS8.94
PEG (NY)12.79
PEG (5Y)2.33
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
WACC7.96%
ROIC/WACC1.08
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 12.31 and the Price/Book (PB) ratio is 2.41.
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%.