ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ET - US29273V1008
16.36 USD
+0.06 (+0.37%)
16.34 USD
-0.02 (-0.12%)
ET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ET while its profitability can be described as average. ET has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ET had positive earnings in the past year.
In the past year ET had a positive cash flow from operations.
Of the past 5 years ET 4 years were profitable.
ET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ET's Return On Assets of 3.33% is in line compared to the rest of the industry. ET outperforms 52.86% of its industry peers.
ET has a better Return On Equity (12.44%) than 71.90% of its industry peers.
ET's Return On Invested Capital of 6.24% is in line compared to the rest of the industry. ET outperforms 56.67% of its industry peers.
ET had an Average Return On Invested Capital over the past 3 years of 6.53%. This is significantly below the industry average of 21.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 12.44% | ||
| ROIC | 6.24% |
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
ET has a Profit Margin of 5.41%. This is comparable to the rest of the industry: ET outperforms 47.62% of its industry peers.
In the last couple of years the Profit Margin of ET has declined.
With a Operating Margin value of 11.59%, ET perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
In the last couple of years the Operating Margin of ET has declined.
ET's Gross Margin of 26.98% is on the low side compared to the rest of the industry. ET is outperformed by 62.38% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.59% | ||
| PM (TTM) | 5.41% | ||
| GM | 26.98% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ET is destroying value.
ET has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ET has been increased compared to 5 years ago.
ET has a worse debt/assets ratio than last year.
2.2 Solvency
ET has a debt to FCF ratio of 12.16. This is a negative value and a sign of low solvency as ET would need 12.16 years to pay back of all of its debts.
ET has a Debt to FCF ratio of 12.16. This is comparable to the rest of the industry: ET outperforms 51.43% of its industry peers.
ET has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
ET has a worse Debt to Equity ratio (1.82) than 78.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 12.16 | ||
| Altman-Z | N/A |
ROIC/WACC0.79
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ET should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, ET is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that ET should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, ET perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ET shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.17%.
Measured over the past years, ET shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.95% on average per year.
ET shows a decrease in Revenue. In the last year, the revenue decreased by -4.67%.
The Revenue has been growing by 8.81% on average over the past years. This is quite good.
EPS 1Y (TTM)4.17%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-3.94%
3.2 Future
The Earnings Per Share is expected to grow by 15.34% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y26.68%
EPS Next 2Y20.25%
EPS Next 3Y16.06%
EPS Next 5Y15.34%
Revenue Next Year-0.97%
Revenue Next 2Y5.48%
Revenue Next 3Y5.03%
Revenue Next 5Y4.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 13.09 indicates a correct valuation of ET.
Based on the Price/Earnings ratio, ET is valued a bit cheaper than 61.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.50. ET is valued rather cheaply when compared to this.
ET is valuated reasonably with a Price/Forward Earnings ratio of 10.10.
73.81% of the companies in the same industry are more expensive than ET, based on the Price/Forward Earnings ratio.
ET is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 10.1 |
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.
74.29% of the companies in the same industry are more expensive than ET, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 7.81 |
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.
ET's earnings are expected to grow with 16.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y20.25%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 8.20%, which is a nice return.
ET's Dividend Yield is rather good when compared to the industry average which is at 3.95. ET pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
5.2 History
The dividend of ET is nicely growing with an annual growth rate of 16.95%!
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)16.95%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
108.83% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
The dividend of ET is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP108.83%
EPS Next 2Y20.25%
EPS Next 3Y16.06%
16.36
+0.06 (+0.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners29.43%
Inst Owner ChangeN/A
Ins Owners9.19%
Ins Owner Change2.47%
Market Cap56.17B
Revenue(TTM)79.76B
Net Income(TTM)4.31B
Analysts85.71
Price Target22.05 (34.78%)
Short Float %0.97%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP108.83%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.08%
Min EPS beat(2)-19.81%
Max EPS beat(2)-8.35%
EPS beat(4)0
Avg EPS beat(4)-13.94%
Min EPS beat(4)-25.18%
Max EPS beat(4)-2.43%
EPS beat(8)1
Avg EPS beat(8)-16.11%
EPS beat(12)1
Avg EPS beat(12)-15.87%
EPS beat(16)4
Avg EPS beat(16)-12.31%
Revenue beat(2)0
Avg Revenue beat(2)-12.33%
Min Revenue beat(2)-14.95%
Max Revenue beat(2)-9.7%
Revenue beat(4)0
Avg Revenue beat(4)-10.93%
Min Revenue beat(4)-14.95%
Max Revenue beat(4)-5.25%
Revenue beat(8)0
Avg Revenue beat(8)-8.64%
Revenue beat(12)0
Avg Revenue beat(12)-9.46%
Revenue beat(16)3
Avg Revenue beat(16)-5.14%
PT rev (1m)-2.19%
PT rev (3m)-4.01%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)-3.09%
EPS NY rev (1m)-1.82%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)6.84%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 10.1 | ||
| P/S | 0.7 | ||
| P/FCF | 10.82 | ||
| P/OCF | 5.18 | ||
| P/B | 1.62 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)1.25
EY7.64%
EPS(NY)1.62
Fwd EY9.9%
FCF(TTM)1.51
FCFY9.24%
OCF(TTM)3.16
OCFY19.3%
SpS23.23
BVpS10.1
TBVpS7.31
PEG (NY)0.49
PEG (5Y)N/A
Graham Number16.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 12.44% | ||
| ROCE | 7.9% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 7.03% | ||
| OM | 11.59% | ||
| PM (TTM) | 5.41% | ||
| GM | 26.98% | ||
| FCFM | 6.51% |
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%
ROICexgc growth 3Y-4.22%
ROICexgc 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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 12.16 | ||
| Debt/EBITDA | 4.26 | ||
| Cap/Depr | 101.56% | ||
| Cap/Sales | 7.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.23% | ||
| Profit Quality | 120.31% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | N/A |
F-Score5
WACC7.92%
ROIC/WACC0.79
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)4.17%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%-12.5%
EPS Next Y26.68%
EPS Next 2Y20.25%
EPS Next 3Y16.06%
EPS Next 5Y15.34%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-3.94%
Revenue Next Year-0.97%
Revenue Next 2Y5.48%
Revenue Next 3Y5.03%
Revenue Next 5Y4.2%
EBIT growth 1Y1.83%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year62.74%
EBIT Next 3Y22.13%
EBIT Next 5Y14.64%
FCF growth 1Y-17.36%
FCF growth 3Y-4.16%
FCF growth 5Y28.49%
OCF growth 1Y12.96%
OCF growth 3Y1.02%
OCF growth 5Y7.39%
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.
What is the valuation status of ENERGY TRANSFER LP (ET) stock?
ChartMill assigns a valuation rating of 6 / 10 to ENERGY TRANSFER LP (ET). This can be considered as Fairly Valued.
How profitable is ENERGY TRANSFER LP (ET) stock?
ENERGY TRANSFER LP (ET) has a profitability rating of 4 / 10.
What is the financial health of ENERGY TRANSFER LP (ET) stock?
The financial health rating of ENERGY TRANSFER LP (ET) is 2 / 10.
How sustainable is the dividend of ENERGY TRANSFER LP (ET) stock?
The dividend rating of ENERGY TRANSFER LP (ET) is 6 / 10 and the dividend payout ratio is 108.83%.