ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - NYSE:EPD - US2937921078
31.28 USD
+0.02 (+0.06%)
31.14 USD
-0.14 (-0.45%)
Taking everything into account, EPD scores 4 out of 10 in our fundamental rating. EPD was compared to 210 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. 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.
In the past 5 years EPD has always been profitable.
In the past 5 years EPD always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.50%, EPD is doing good in the industry, outperforming 78.10% of the companies in the same industry.
EPD's Return On Equity of 19.95% is amongst the best of the industry. EPD outperforms 86.19% of its industry peers.
The Return On Invested Capital of EPD (8.77%) is better than 76.67% 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 21.89%.
| 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
With a Profit Margin value of 10.61%, EPD perfoms like the industry average, outperforming 58.10% 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 12.71% is in line compared to the rest of the industry. EPD outperforms 43.81% of its industry peers.
EPD's Operating Margin has declined in the last couple of years.
EPD has a worse Gross Margin (20.83%) than 64.76% of its industry peers.
EPD's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPD 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
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.
EPD's Debt to FCF ratio of 7.78 is in line compared to the rest of the industry. EPD outperforms 55.71% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that EPD has dependencies on debt financing.
EPD has a worse Debt to Equity ratio (1.07) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.15
WACC7.63%
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's Current ratio of 0.96 is in line compared to the rest of the industry. EPD outperforms 42.38% of its industry peers.
A Quick Ratio of 0.69 indicates that EPD may have some problems paying its short term obligations.
EPD's Quick ratio of 0.69 is on the low side compared to the rest of the industry. EPD is outperformed by 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 |
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 grown by 13.08% in the past year. This is quite good.
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)13.08%
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.
Based on estimates for the next years, EPD will show a decrease in Revenue. The Revenue will decrease by -0.77% on average per year.
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
The Price/Earnings ratio is 11.80, which indicates a very decent valuation of EPD.
Based on the Price/Earnings ratio, EPD is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
EPD is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.75, the valuation of EPD can be described as reasonable.
EPD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPD is cheaper than 71.43% 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 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 10.75 |
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 | 16.08 | ||
| EV/EBITDA | 10.57 |
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)12.26
PEG (5Y)2.24
EPS Next 2Y4%
EPS Next 3Y4.26%
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 5.91, EPD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 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 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
EPD pays out 79.13% of its income as dividend. 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%
EPS Next 3Y4.26%
31.28
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.81%
Inst Owner Change-1.01%
Ins Owners32.9%
Ins Owner Change0.2%
Market Cap67.73B
Revenue(TTM)56.22B
Net Income(TTM)5.81B
Analysts80.83
Price Target36.39 (16.34%)
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)-0.04%
PT rev (3m)-0.74%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.6%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-9.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 10.75 | ||
| P/S | 1.24 | ||
| P/FCF | 16.08 | ||
| P/OCF | 7.69 | ||
| P/B | 2.33 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)2.65
EY8.47%
EPS(NY)2.91
Fwd EY9.3%
FCF(TTM)1.94
FCFY6.22%
OCF(TTM)4.07
OCFY13%
SpS25.29
BVpS13.45
TBVpS9.01
PEG (NY)12.26
PEG (5Y)2.24
Graham Number28.32
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
WACC7.63%
ROIC/WACC1.15
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)13.08%
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 1Y2.29%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year37.42%
EBIT Next 3Y14.68%
EBIT Next 5Y10%
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 11.8 and the Price/Book (PB) ratio is 2.33.
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%.