ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
NYSE:ET - New York Stock Exchange, Inc. - US29273V1008 - Currency: USD
Overall ET gets a fundamental rating of 3 out of 10. We evaluated ET against 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of ET have multiple concerns. ET has a decent growth rate and is not valued too expensively. Finally ET also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ET was profitable.
ET had a positive operating cash flow in the past year.
ET had positive earnings in 4 of the past 5 years.
In the past 5 years ET always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ET (3.50%) is comparable to the rest of the industry.
The Return On Equity of ET (12.51%) is comparable to the rest of the industry.
ET has a Return On Invested Capital (6.44%) which is comparable to the rest of the industry.
ET had an Average Return On Invested Capital over the past 3 years of 6.53%. This is significantly below the industry average of 28.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 12.51% | ||
| ROIC | 6.44% |
ROA(3y)3.55%
ROA(5y)2.97%
ROE(3y)11.69%
ROE(5y)9.63%
ROIC(3y)6.53%
ROIC(5y)6.42%
1.3 Margins
With a Profit Margin value of 5.32%, ET is not doing good in the industry: 61.08% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of ET has declined.
ET has a Operating Margin of 11.12%. This is in the lower half of the industry: ET underperforms 64.04% of its industry peers.
In the last couple of years the Operating Margin of ET has declined.
ET has a Gross Margin of 25.03%. This is in the lower half of the industry: ET underperforms 65.02% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.12% | ||
| PM (TTM) | 5.32% | ||
| GM | 25.03% |
OM growth 3Y-5.26%
OM growth 5Y-3.7%
PM growth 3Y-11.55%
PM growth 5Y-3.89%
GM growth 3Y-0.3%
GM growth 5Y-1.23%
2. Health
2.1 Basic Checks
ET has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ET has been increased compared to 1 year ago.
ET has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ET is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ET is 8.14, which is on the high side as it means it would take ET, 8.14 years of fcf income to pay off all of its debts.
ET has a Debt to FCF ratio of 8.14. This is comparable to the rest of the industry: ET outperforms 50.74% of its industry peers.
ET has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.70, ET is doing worse than 81.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.82
WACC7.89%
2.3 Liquidity
ET has a Current Ratio of 1.12. This is a normal value and indicates that ET is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.12, ET perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
ET has a Quick Ratio of 1.12. This is a bad value and indicates that ET is not financially healthy enough and could expect problems in meeting its short term obligations.
ET has a Quick ratio of 0.88. This is in the lower half of the industry: ET underperforms 60.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for ET have decreased strongly by -11.81% in the last year.
ET shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.95% yearly.
Looking at the last year, ET shows a small growth in Revenue. The Revenue has grown by 5.20% in the last year.
ET shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.81% yearly.
EPS 1Y (TTM)-11.81%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%-21.62%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-4.83%
3.2 Future
ET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.01% yearly.
Based on estimates for the next years, ET will show a small growth in Revenue. The Revenue will grow by 1.82% on average per year.
EPS Next Y44.12%
EPS Next 2Y24.35%
EPS Next 3Y20.76%
EPS Next 5Y22.01%
Revenue Next Year7.26%
Revenue Next 2Y5.22%
Revenue Next 3Y3.71%
Revenue Next 5Y1.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 17.28, which indicates a rather expensive current valuation of ET.
Compared to the rest of the industry, the Price/Earnings ratio of ET is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.98. ET is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.99, which indicates a very decent valuation of ET.
The rest of the industry has a similar Price/Forward Earnings ratio as ET.
When comparing the Price/Forward Earnings ratio of ET to the average of the S&P500 Index (22.66), we can say ET is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ET is on the same level as its industry peers.
ET's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ET is cheaper than 72.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.04 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ET's earnings are expected to grow with 20.76% in the coming years.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y24.35%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 6.86%, which is a nice return.
Compared to an average industry Dividend Yield of 6.98, ET pays a bit more dividend than its industry peers.
ET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
5.2 History
On average, the dividend of ET grows each year by 16.95%, which is quite nice.
ET has been paying a dividend for at least 10 years, so it has a reliable track record.
ET has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.95%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
105.21% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
ET's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP105.21%
EPS Next 2Y24.35%
EPS Next 3Y20.76%
NYSE:ET (3/3/2025, 12:04:54 PM)
19.3497
+0.06 (+0.31%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners32.43%
Inst Owner ChangeN/A
Ins Owners9.24%
Ins Owner Change0.82%
Market Cap66.39B
Analysts86.4
Price Target23.15 (19.64%)
Short Float %0.94%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP105.21%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.01%
Min EPS beat(2)-25.18%
Max EPS beat(2)-8.83%
EPS beat(4)0
Avg EPS beat(4)-25.4%
Min EPS beat(4)-48.79%
Max EPS beat(4)-8.83%
EPS beat(8)1
Avg EPS beat(8)-18.23%
EPS beat(12)3
Avg EPS beat(12)-13.89%
EPS beat(16)5
Avg EPS beat(16)3.57%
Revenue beat(2)0
Avg Revenue beat(2)-11.68%
Min Revenue beat(2)-13.81%
Max Revenue beat(2)-9.55%
Revenue beat(4)0
Avg Revenue beat(4)-8.03%
Min Revenue beat(4)-13.81%
Max Revenue beat(4)-0.21%
Revenue beat(8)0
Avg Revenue beat(8)-8.4%
Revenue beat(12)2
Avg Revenue beat(12)-5.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.08%
PT rev (1m)1.03%
PT rev (3m)12.8%
EPS NQ rev (1m)2.18%
EPS NQ rev (3m)6%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)-4.79%
Revenue NQ rev (3m)-6.37%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 11.99 | ||
| P/S | 0.8 | ||
| P/FCF | 9.04 | ||
| P/OCF | 5.77 | ||
| P/B | 1.89 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)1.12
EY5.79%
EPS(NY)1.61
Fwd EY8.34%
FCF(TTM)2.14
FCFY11.06%
OCF(TTM)3.35
OCFY17.33%
SpS24.09
BVpS10.24
TBVpS7.36
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 12.51% | ||
| ROCE | 8.15% | ||
| ROIC | 6.44% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 7.08% | ||
| OM | 11.12% | ||
| PM (TTM) | 5.32% | ||
| GM | 25.03% | ||
| FCFM | 8.88% |
ROA(3y)3.55%
ROA(5y)2.97%
ROE(3y)11.69%
ROE(5y)9.63%
ROIC(3y)6.53%
ROIC(5y)6.42%
ROICexc(3y)6.54%
ROICexc(5y)6.44%
ROICexgc(3y)7.2%
ROICexgc(5y)7.08%
ROCE(3y)8.26%
ROCE(5y)8.12%
ROICexcg growth 3Y-4.22%
ROICexcg growth 5Y-0.39%
ROICexc growth 3Y-4.2%
ROICexc growth 5Y0.43%
OM growth 3Y-5.26%
OM growth 5Y-3.7%
PM growth 3Y-11.55%
PM growth 5Y-3.89%
GM growth 3Y-0.3%
GM growth 5Y-1.23%
F-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 8.14 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 80.62% | ||
| Cap/Sales | 5.04% | ||
| Interest Coverage | 3.19 | ||
| Cash Conversion | 80.15% | ||
| Profit Quality | 167.09% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score7
WACC7.89%
ROIC/WACC0.82
Cap/Depr(3y)77.76%
Cap/Depr(5y)89.34%
Cap/Sales(3y)4.26%
Cap/Sales(5y)6.03%
Profit Quality(3y)161.04%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.81%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%-21.62%
EPS Next Y44.12%
EPS Next 2Y24.35%
EPS Next 3Y20.76%
EPS Next 5Y22.01%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-4.83%
Revenue Next Year7.26%
Revenue Next 2Y5.22%
Revenue Next 3Y3.71%
Revenue Next 5Y1.82%
EBIT growth 1Y10.63%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year66.3%
EBIT Next 3Y20.98%
EBIT Next 5Y13.64%
FCF growth 1Y14.34%
FCF growth 3Y-4.16%
FCF growth 5Y28.49%
OCF growth 1Y20.42%
OCF growth 3Y1.02%
OCF growth 5Y7.39%