ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
NYSE:ET - New York Stock Exchange, Inc. - US29273V1008 - Currency: USD
ET gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of ET have multiple concerns. ET has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years ET had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ET (3.61%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.91%, ET is in the better half of the industry, outperforming 66.82% of the companies in the same industry.
ET has a Return On Invested Capital of 6.51%. This is comparable to the rest of the industry: ET outperforms 57.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ET is significantly below the industry average of 23.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 12.91% | ||
| ROIC | 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%
1.3 Margins
ET has a Profit Margin (5.56%) which is in line with its industry peers.
ET's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 11.34%, ET is not doing good in the industry: 60.19% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ET has declined.
ET's Gross Margin of 25.73% is on the low side compared to the rest of the industry. ET is outperformed by 62.09% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.34% | ||
| PM (TTM) | 5.56% | ||
| GM | 25.73% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ET is destroying value.
ET has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ET has more shares outstanding
The debt/assets ratio for ET is higher compared to a year ago.
2.2 Solvency
ET has a debt to FCF ratio of 9.87. This is a negative value and a sign of low solvency as ET would need 9.87 years to pay back of all of its debts.
The Debt to FCF ratio of ET (9.87) is comparable to the rest of the industry.
ET has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ET (1.69) is worse than 76.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 9.87 | ||
| Altman-Z | N/A |
ROIC/WACC0.76
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.12 indicates that ET should not have too much problems paying its short term obligations.
ET has a Current ratio of 1.12. This is comparable to the rest of the industry: ET outperforms 48.82% of its industry peers.
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 (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for ET have decreased by -8.66% in the last year.
The Earnings Per Share has been decreasing by -3.95% on average over the past years.
Looking at the last year, ET shows a small growth in Revenue. The Revenue has grown by 1.04% in the last year.
Measured over the past years, ET shows a quite strong growth in Revenue. The Revenue has been growing by 8.81% on average per year.
EPS 1Y (TTM)-8.66%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%12.5%
Revenue 1Y (TTM)1.04%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-2.82%
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 16.96% on average per year.
Based on estimates for the next years, ET will show a small growth in Revenue. The Revenue will grow by 5.41% on average per year.
EPS Next Y36.79%
EPS Next 2Y21.76%
EPS Next 3Y16.54%
EPS Next 5Y16.96%
Revenue Next Year5.71%
Revenue Next 2Y5.03%
Revenue Next 3Y5.37%
Revenue Next 5Y5.41%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.05, ET is valued correctly.
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 27.30. ET is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.51, the valuation of ET can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ET indicates a somewhat cheap valuation: ET is cheaper than 65.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
ET's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ET is valued a bit cheaper than the industry average as 76.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.89 | ||
| EV/EBITDA | 8.17 |
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 16.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y21.76%
EPS Next 3Y16.54%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 7.41%, which is a nice return.
ET's Dividend Yield is a higher than the industry average which is at 6.51.
Compared to an average S&P500 Dividend Yield of 2.37, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.41% |
5.2 History
On average, the dividend of ET grows each year by 16.95%, which is quite nice.
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
ET pays out 101.49% of its income as dividend. This is not a sustainable payout ratio.
ET's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP101.49%
EPS Next 2Y21.76%
EPS Next 3Y16.54%
17.46
+0.02 (+0.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.2%
Inst Owner ChangeN/A
Ins Owners9.16%
Ins Owner Change0%
Market Cap59.92B
Analysts86.67
Price Target23.25 (33.16%)
Short Float %0.91%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.41% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP101.49%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.81%
Min EPS beat(2)-25.18%
Max EPS beat(2)-2.43%
EPS beat(4)0
Avg EPS beat(4)-21.31%
Min EPS beat(4)-48.79%
Max EPS beat(4)-2.43%
EPS beat(8)1
Avg EPS beat(8)-16.44%
EPS beat(12)2
Avg EPS beat(12)-15.2%
EPS beat(16)4
Avg EPS beat(16)-14.04%
Revenue beat(2)0
Avg Revenue beat(2)-9.53%
Min Revenue beat(2)-13.81%
Max Revenue beat(2)-5.25%
Revenue beat(4)0
Avg Revenue beat(4)-9.29%
Min Revenue beat(4)-13.81%
Max Revenue beat(4)-5.25%
Revenue beat(8)0
Avg Revenue beat(8)-7.29%
Revenue beat(12)1
Avg Revenue beat(12)-6.06%
Revenue beat(16)4
Avg Revenue beat(16)-3.22%
PT rev (1m)-0.06%
PT rev (3m)-1.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.54%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 10.51 | ||
| P/S | 0.73 | ||
| P/FCF | 9.89 | ||
| P/OCF | 5.63 | ||
| P/B | 1.7 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)1.16
EY6.64%
EPS(NY)1.66
Fwd EY9.51%
FCF(TTM)1.77
FCFY10.11%
OCF(TTM)3.1
OCFY17.78%
SpS23.91
BVpS10.29
TBVpS7.44
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 12.91% | ||
| ROCE | 8.25% | ||
| ROIC | 6.51% | ||
| ROICexc | 6.54% | ||
| ROICexgc | 7.16% | ||
| OM | 11.34% | ||
| PM (TTM) | 5.56% | ||
| GM | 25.73% | ||
| FCFM | 7.38% |
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-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 9.87 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 87.02% | ||
| Cap/Sales | 5.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.04% | ||
| Profit Quality | 132.85% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score5
WACC8.62%
ROIC/WACC0.76
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)-8.66%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%12.5%
EPS Next Y36.79%
EPS Next 2Y21.76%
EPS Next 3Y16.54%
EPS Next 5Y16.96%
Revenue 1Y (TTM)1.04%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-2.82%
Revenue Next Year5.71%
Revenue Next 2Y5.03%
Revenue Next 3Y5.37%
Revenue Next 5Y5.41%
EBIT growth 1Y7.9%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year65.59%
EBIT Next 3Y21.52%
EBIT Next 5Y14.37%
FCF growth 1Y-7.5%
FCF growth 3Y-4.16%
FCF growth 5Y28.49%
OCF growth 1Y6.18%
OCF growth 3Y1.02%
OCF growth 5Y7.39%