ENERGY TRANSFER LP (ET) Fundamental Analysis & Valuation
NYSE:ET • US29273V1008
18.74 USD
+0.07 (+0.37%)
At close: Mar 6, 2026
18.65 USD
-0.09 (-0.48%)
After Hours: 3/6/2026, 8:14:29 PM
This ET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall ET gets a fundamental rating of 4 out of 10. We evaluated ET against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While ET is still in line with the averages on profitability rating, there are concerns on its financial health. ET has a correct valuation and a medium growth rate. ET also has an excellent dividend rating.
1. ET Profitability Analysis
1.1 Basic Checks
- In the past year ET was profitable.
- In the past year ET had a positive cash flow from operations.
- ET had positive earnings in each of the past 5 years.
- In the past 5 years ET always reported a positive cash flow from operatings.
1.2 Ratios
- ET has a Return On Assets of 2.95%. This is comparable to the rest of the industry: ET outperforms 49.28% of its industry peers.
- With a decent Return On Equity value of 12.14%, ET is doing good in the industry, outperforming 68.60% of the companies in the same industry.
- With a Return On Invested Capital value of 5.82%, ET perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ET is significantly below the industry average of 22.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 12.14% | ||
| ROIC | 5.82% |
ROA(3y)3.17%
ROA(5y)3.7%
ROE(3y)11.37%
ROE(5y)12.75%
ROIC(3y)6.22%
ROIC(5y)6.55%
1.3 Margins
- ET has a Profit Margin of 4.88%. This is comparable to the rest of the industry: ET outperforms 45.41% of its industry peers.
- In the last couple of years the Profit Margin of ET has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 10.89%, ET is in line with its industry, outperforming 43.48% of the companies in the same industry.
- ET's Operating Margin has declined in the last couple of years.
- ET's Gross Margin of 25.77% is on the low side compared to the rest of the industry. ET is outperformed by 62.80% of its industry peers.
- ET's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 4.88% | ||
| GM | 25.77% |
OM growth 3Y6.4%
OM growth 5Y-6.26%
PM growth 3Y0.42%
PM growth 5YN/A
GM growth 3Y9.48%
GM growth 5Y-5.73%
2. ET Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ET is destroying value.
- The number of shares outstanding for ET has been increased compared to 1 year ago.
- Compared to 5 years ago, ET has more shares outstanding
- Compared to 1 year ago, ET has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of ET is 17.77, which is on the high side as it means it would take ET, 17.77 years of fcf income to pay off all of its debts.
- ET's Debt to FCF ratio of 17.77 is in line compared to the rest of the industry. ET outperforms 47.34% of its industry peers.
- A Debt/Equity ratio of 1.99 is on the high side and indicates that ET has dependencies on debt financing.
- ET's Debt to Equity ratio of 1.99 is on the low side compared to the rest of the industry. ET is outperformed by 78.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 17.77 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC6.7%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that ET should not have too much problems paying its short term obligations.
- ET has a Current ratio of 1.22. This is comparable to the rest of the industry: ET outperforms 55.56% of its industry peers.
- ET has a Quick Ratio of 1.22. 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's Quick ratio of 0.90 is in line compared to the rest of the industry. ET outperforms 46.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.9 |
3. ET Growth Analysis
3.1 Past
- ET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.04%, which is quite good.
- Measured over the past years, ET shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.52% on average per year.
- ET shows a small growth in Revenue. In the last year, the Revenue has grown by 3.47%.
- ET shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.04% yearly.
EPS 1Y (TTM)8.04%
EPS 3Y-4.52%
EPS 5YN/A
EPS Q2Q%-13.79%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y-1.64%
Revenue growth 5Y17.04%
Sales Q2Q%29.57%
3.2 Future
- Based on estimates for the next years, ET will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.77% on average per year.
- Based on estimates for the next years, ET will show a small growth in Revenue. The Revenue will grow by 6.06% on average per year.
EPS Next Y32.18%
EPS Next 2Y19.71%
EPS Next 3Y16.03%
EPS Next 5Y17.77%
Revenue Next Year14.23%
Revenue Next 2Y9.39%
Revenue Next 3Y6.55%
Revenue Next 5Y6.06%
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 accelerating.
- 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. ET Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.49, which indicates a correct valuation of ET.
- 63.77% of the companies in the same industry are more expensive than ET, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.29, ET is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 11.72, the valuation of ET can be described as reasonable.
- Based on the Price/Forward Earnings ratio, ET is valued cheaper than 80.68% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.57. ET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
- ET's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ET indicates a somewhat cheap valuation: ET is cheaper than 65.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.73 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
- ET's 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 16.03% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y19.71%
EPS Next 3Y16.03%
5. ET Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 7.17%, ET is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.39, ET pays a better dividend. On top of this ET pays more dividend than 83.57% of the companies listed in the same industry.
- ET's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.17% |
5.2 History
- The dividend of ET has a limited annual growth rate of 5.40%.
- ET has paid a dividend for at least 10 years, which is a reliable track record.
- ET has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.4%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 113.23% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
- The dividend of ET is growing, but earnings are growing more, so the dividend growth is sustainable.
DP113.23%
EPS Next 2Y19.71%
EPS Next 3Y16.03%
ET Fundamentals: All Metrics, Ratios and Statistics
18.74
+0.07 (+0.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-17 2026-02-17/bmo
Earnings (Next)05-04 2026-05-04
Inst Owners29.47%
Inst Owner ChangeN/A
Ins Owners9.2%
Ins Owner Change0.83%
Market Cap64.34B
Revenue(TTM)85.54B
Net Income(TTM)4.17B
Analysts84.83
Price Target22.23 (18.62%)
Short Float %0.96%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.17% |
Yearly Dividend1.38
Dividend Growth(5Y)5.4%
DP113.23%
Div Incr Years3
Div Non Decr Years3
Ex-Date02-06 2026-02-06 (0.335)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.95%
Min EPS beat(2)-34.09%
Max EPS beat(2)-19.81%
EPS beat(4)0
Avg EPS beat(4)-16.17%
Min EPS beat(4)-34.09%
Max EPS beat(4)-2.43%
EPS beat(8)0
Avg EPS beat(8)-20.78%
EPS beat(12)1
Avg EPS beat(12)-17.55%
EPS beat(16)3
Avg EPS beat(16)-14.46%
Revenue beat(2)1
Avg Revenue beat(2)-3.84%
Min Revenue beat(2)-9.7%
Max Revenue beat(2)2.03%
Revenue beat(4)1
Avg Revenue beat(4)-6.97%
Min Revenue beat(4)-14.95%
Max Revenue beat(4)2.03%
Revenue beat(8)1
Avg Revenue beat(8)-7.5%
Revenue beat(12)1
Avg Revenue beat(12)-7.92%
Revenue beat(16)3
Avg Revenue beat(16)-5.58%
PT rev (1m)1.4%
PT rev (3m)0.31%
EPS NQ rev (1m)2.88%
EPS NQ rev (3m)5.52%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)2.52%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)3.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 11.72 | ||
| P/S | 0.75 | ||
| P/FCF | 16.73 | ||
| P/OCF | 6.34 | ||
| P/B | 1.87 | ||
| P/tB | 3 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)1.21
EY6.46%
EPS(NY)1.6
Fwd EY8.53%
FCF(TTM)1.12
FCFY5.98%
OCF(TTM)2.96
OCFY15.77%
SpS24.91
BVpS10.01
TBVpS6.26
PEG (NY)0.48
PEG (5Y)N/A
Graham Number16.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 12.14% | ||
| ROCE | 7.37% | ||
| ROIC | 5.82% | ||
| ROICexc | 5.88% | ||
| ROICexgc | 6.56% | ||
| OM | 10.89% | ||
| PM (TTM) | 4.88% | ||
| GM | 25.77% | ||
| FCFM | 4.5% |
ROA(3y)3.17%
ROA(5y)3.7%
ROE(3y)11.37%
ROE(5y)12.75%
ROIC(3y)6.22%
ROIC(5y)6.55%
ROICexc(3y)6.25%
ROICexc(5y)6.57%
ROICexgc(3y)6.92%
ROICexgc(5y)7.24%
ROCE(3y)7.88%
ROCE(5y)8.29%
ROICexgc growth 3Y-3.83%
ROICexgc growth 5Y2.72%
ROICexc growth 3Y-4.5%
ROICexc growth 5Y2.46%
OM growth 3Y6.4%
OM growth 5Y-6.26%
PM growth 3Y0.42%
PM growth 5YN/A
GM growth 3Y9.48%
GM growth 5Y-5.73%
F-Score5
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 17.77 | ||
| Debt/EBITDA | 4.56 | ||
| Cap/Depr | 110.93% | ||
| Cap/Sales | 7.37% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | 92.16% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | N/A |
F-Score5
WACC6.7%
ROIC/WACC0.87
Cap/Depr(3y)87.67%
Cap/Depr(5y)83.63%
Cap/Sales(3y)5.46%
Cap/Sales(5y)4.87%
Profit Quality(3y)148.12%
Profit Quality(5y)147.27%
High Growth Momentum
Growth
EPS 1Y (TTM)8.04%
EPS 3Y-4.52%
EPS 5YN/A
EPS Q2Q%-13.79%
EPS Next Y32.18%
EPS Next 2Y19.71%
EPS Next 3Y16.03%
EPS Next 5Y17.77%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y-1.64%
Revenue growth 5Y17.04%
Sales Q2Q%29.57%
Revenue Next Year14.23%
Revenue Next 2Y9.39%
Revenue Next 3Y6.55%
Revenue Next 5Y6.06%
EBIT growth 1Y1.33%
EBIT growth 3Y4.65%
EBIT growth 5Y9.71%
EBIT Next Year87.63%
EBIT Next 3Y26.63%
EBIT Next 5Y17.88%
FCF growth 1Y-47.62%
FCF growth 3Y-12.14%
FCF growth 5Y11.51%
OCF growth 1Y-11.79%
OCF growth 3Y3.89%
OCF growth 5Y6.63%
ENERGY TRANSFER LP / ET FAQ
What is the ChartMill fundamental rating of ENERGY TRANSFER LP (ET) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ET.
Can you provide the valuation status for ENERGY TRANSFER LP?
ChartMill assigns a valuation rating of 6 / 10 to ENERGY TRANSFER LP (ET). This can be considered as Fairly Valued.
What is the profitability of ET stock?
ENERGY TRANSFER LP (ET) has a profitability rating of 4 / 10.
Can you provide the financial health for ET stock?
The financial health rating of ENERGY TRANSFER LP (ET) is 1 / 10.
Is the dividend of ENERGY TRANSFER LP sustainable?
The dividend rating of ENERGY TRANSFER LP (ET) is 7 / 10 and the dividend payout ratio is 113.23%.