ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPD - US2937921078
32.06 USD
-0.05 (-0.16%)
32.06 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EPD. EPD was compared to 209 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 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.
In the past year EPD had a positive cash flow from operations.
EPD had positive earnings in each of the past 5 years.
Each year in the past 5 years EPD had a positive operating cash flow.
1.2 Ratios
EPD has a Return On Assets of 7.36%. This is in the better half of the industry: EPD outperforms 79.43% of its industry peers.
The Return On Equity of EPD (19.59%) is better than 88.52% of its industry peers.
The Return On Invested Capital of EPD (8.63%) is better than 78.95% 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 21.18%.
| 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 better than 60.77% of its industry peers.
EPD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.94%, EPD is in line with its industry, outperforming 46.41% of the companies in the same industry.
In the last couple of years the Operating Margin of EPD has declined.
EPD has a Gross Margin of 21.52%. This is in the lower half of the industry: EPD underperforms 65.07% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EPD is still creating some value.
EPD has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for EPD has been reduced compared to 5 years ago.
The debt/assets ratio for EPD is higher compared to a year ago.
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.
EPD has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
EPD has a worse Debt to Equity ratio (1.06) than 70.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 10.86 | ||
| Altman-Z | N/A |
ROIC/WACC1.09
WACC7.89%
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 Current ratio of 0.88. This is in the lower half of the industry: EPD underperforms 61.24% of its industry peers.
A Quick Ratio of 0.60 indicates that EPD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, EPD is doing worse than 70.81% of the companies in the same industry.
| 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%.
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.
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
The Earnings Per Share is expected to grow by 5.19% on average over the next years.
The Revenue is expected to grow by 2.47% on average over the next years.
EPS Next Y-1.44%
EPS Next 2Y3.22%
EPS Next 3Y4.05%
EPS Next 5Y5.19%
Revenue Next Year-8.07%
Revenue Next 2Y-2.56%
Revenue Next 3Y1.07%
Revenue Next 5Y2.47%
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
A Price/Earnings ratio of 12.10 indicates a correct valuation of EPD.
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.
EPD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
EPD is valuated reasonably with a Price/Forward Earnings ratio of 11.19.
EPD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPD is cheaper than 68.42% of the companies in the same industry.
EPD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.19 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as EPD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.42 | ||
| EV/EBITDA | 10.98 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.29
EPS Next 2Y3.22%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.80%, EPD is a good candidate for dividend investing.
EPD's Dividend Yield is a higher than the industry average which is at 3.93.
EPD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
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
EPD pays out 80.91% of its income as dividend. 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 2Y3.22%
EPS Next 3Y4.05%
32.06
-0.05 (-0.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.36%
Inst Owner Change0.55%
Ins Owners32.93%
Ins Owner Change-0.15%
Market Cap69.36B
Revenue(TTM)53.00B
Net Income(TTM)5.73B
Analysts80.83
Price Target36.39 (13.51%)
Short Float %2.01%
Short Ratio7.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP80.91%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
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)-1.51%
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%
PT rev (3m)-0.39%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-4.99%
EPS NY rev (1m)-2.38%
EPS NY rev (3m)-2.8%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-15.27%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-4.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.19 | ||
| P/S | 1.31 | ||
| P/FCF | 22.42 | ||
| P/OCF | 8.19 | ||
| P/B | 2.37 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 10.98 |
EPS(TTM)2.65
EY8.27%
EPS(NY)2.87
Fwd EY8.94%
FCF(TTM)1.43
FCFY4.46%
OCF(TTM)3.92
OCFY12.21%
SpS24.5
BVpS13.53
TBVpS8.94
PEG (NY)N/A
PEG (5Y)2.29
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
WACC7.89%
ROIC/WACC1.09
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 Y-1.44%
EPS Next 2Y3.22%
EPS Next 3Y4.05%
EPS Next 5Y5.19%
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-12.72%
Revenue Next Year-8.07%
Revenue Next 2Y-2.56%
Revenue Next 3Y1.07%
Revenue Next 5Y2.47%
EBIT growth 1Y-0.97%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year35.57%
EBIT Next 3Y14.26%
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 4 / 10 to EPD.
What is the valuation status for EPD stock?
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 5 / 10.
Can you provide the PE and PB ratios for EPD stock?
The Price/Earnings (PE) ratio for ENTERPRISE PRODUCTS PARTNERS (EPD) is 12.1 and the Price/Book (PB) ratio is 2.37.
Can you provide the expected EPS growth for EPD stock?
The Earnings per Share (EPS) of ENTERPRISE PRODUCTS PARTNERS (EPD) is expected to decline by -1.44% in the next year.