ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPD - US2937921078
32.44 USD
+0.55 (+1.72%)
32.44 USD
0 (0%)
Overall EPD gets a fundamental rating of 3 out of 10. We evaluated EPD against 210 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 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
In the past year EPD was profitable.
In the past year EPD had a positive cash flow from operations.
In the past 5 years EPD has always been profitable.
EPD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EPD has a Return On Assets of 7.36%. This is in the better half of the industry: EPD outperforms 77.62% of its industry peers.
The Return On Equity of EPD (19.59%) is better than 86.19% of its industry peers.
The Return On Invested Capital of EPD (8.63%) is better than 77.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPD is significantly below the industry average of 21.66%.
| 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
EPD's Profit Margin of 10.81% is in line compared to the rest of the industry. EPD outperforms 58.57% of its industry peers.
EPD's Profit Margin has declined in the last couple of years.
EPD's Operating Margin of 12.94% is in line compared to the rest of the industry. EPD outperforms 44.76% of its industry peers.
EPD's Operating Margin has declined in the last couple of years.
EPD has a Gross Margin of 21.52%. This is in the lower half of the industry: EPD underperforms 64.76% 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.
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.
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: 70.00% 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/WACC1.1
WACC7.88%
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.
Looking at the Current ratio, with a value of 0.88, EPD is doing worse than 60.48% of the companies in the same industry.
EPD has a Quick 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's Quick ratio of 0.60 is on the low side compared to the rest of the industry. EPD is outperformed by 72.38% of its industry peers.
| 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.
Looking at the last year, EPD shows a decrease in Revenue. The Revenue has decreased by -6.42% in the last year.
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.
The Revenue is expected to decrease by -0.77% 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 5Y-0.77%
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.
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 12.24, EPD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 64.76% of the companies listed in the same industry.
EPD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 11.15, 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 69.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPD is on the same level as its industry peers.
EPD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.71 | ||
| EV/EBITDA | 10.94 |
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)12.72
PEG (5Y)2.32
EPS Next 2Y4%
EPS Next 3Y4.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.84%, EPD is a good candidate for dividend investing.
EPD's Dividend Yield is a higher than the industry average which is at 5.90.
Compared to an average S&P500 Dividend Yield of 2.45, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
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.
EPD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.91%
EPS Next 2Y4%
EPS Next 3Y4.26%
32.44
+0.55 (+1.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.81%
Inst Owner Change0.66%
Ins Owners32.9%
Ins Owner Change0.3%
Market Cap70.24B
Revenue(TTM)53.00B
Net Income(TTM)5.73B
Analysts80.83
Price Target36.39 (12.18%)
Short Float %2.32%
Short Ratio8.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
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)-2.05%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)-10.66%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-9.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.15 | ||
| P/S | 1.33 | ||
| P/FCF | 22.71 | ||
| P/OCF | 8.29 | ||
| P/B | 2.4 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 10.94 |
EPS(TTM)2.65
EY8.17%
EPS(NY)2.91
Fwd EY8.97%
FCF(TTM)1.43
FCFY4.4%
OCF(TTM)3.91
OCFY12.06%
SpS24.48
BVpS13.51
TBVpS8.93
PEG (NY)12.72
PEG (5Y)2.32
Graham Number28.39
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
WACC7.88%
ROIC/WACC1.1
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 5Y-0.77%
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 12.24 and the Price/Book (PB) ratio is 2.4.
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%.