ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
NYSE:ET - New York Stock Exchange, Inc. - US29273V1008 - Currency: USD
We assign a fundamental rating of 3 out of 10 to ET. ET was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of ET have multiple concerns. ET is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ET was profitable.
In the past year ET had a positive cash flow from operations.
Of the past 5 years ET 4 years were profitable.
In the past 5 years ET always reported a positive cash flow from operatings.
1.2 Ratios
ET's Return On Assets of 3.69% is on the low side compared to the rest of the industry. ET is outperformed by 60.19% of its industry peers.
With a Return On Equity value of 13.02%, ET perfoms like the industry average, outperforming 58.74% of the companies in the same industry.
ET's Return On Invested Capital of 6.40% is in line compared to the rest of the industry. ET outperforms 45.15% of its industry peers.
ET had an Average Return On Invested Capital over the past 3 years of 6.82%. This is significantly below the industry average of 28.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 13.02% | ||
| ROIC | 6.4% |
ROA(3y)4.01%
ROA(5y)2.98%
ROE(3y)13.04%
ROE(5y)10.33%
ROIC(3y)6.82%
ROIC(5y)6.39%
1.3 Margins
With a Profit Margin value of 5.49%, ET is not doing good in the industry: 62.14% of the companies in the same industry are doing better.
ET's Profit Margin has improved in the last couple of years.
ET has a Operating Margin of 10.85%. This is in the lower half of the industry: ET underperforms 64.56% of its industry peers.
In the last couple of years the Operating Margin of ET has remained more or less at the same level.
The Gross Margin of ET (23.98%) is worse than 65.05% of its industry peers.
In the last couple of years the Gross Margin of ET has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.85% | ||
| PM (TTM) | 5.49% | ||
| GM | 23.98% |
OM growth 3Y-11.1%
OM growth 5Y-0.4%
PM growth 3YN/A
PM growth 5Y6.87%
GM growth 3Y-12.78%
GM growth 5Y-0.1%
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.
Compared to 1 year ago, ET has more shares outstanding
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 8.66, which is on the high side as it means it would take ET, 8.66 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ET (8.66) is comparable to the rest of the industry.
ET has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
ET has a Debt to Equity ratio of 1.67. This is amonst the worse of the industry: ET underperforms 82.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 8.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.83
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.08 indicates that ET should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, ET is in line with its industry, outperforming 41.26% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that ET should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, ET is in line with its industry, outperforming 51.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
ET shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.23%.
Measured over the past years, ET shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.31% on average per year.
Looking at the last year, ET shows a small growth in Revenue. The Revenue has grown by 6.50% in the last year.
The Revenue has been growing slightly by 7.76% on average over the past years.
EPS 1Y (TTM)-3.23%
EPS 3YN/A
EPS 5Y-0.31%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)6.5%
Revenue growth 3Y26.36%
Revenue growth 5Y7.76%
Sales Q2Q%0.16%
3.2 Future
ET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.34% yearly.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y15.73%
EPS Next 2Y13.42%
EPS Next 3Y10.78%
EPS Next 5Y14.34%
Revenue Next Year7.09%
Revenue Next 2Y7.13%
Revenue Next 3Y6.19%
Revenue Next 5Y2.85%
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.
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
ET is valuated rather expensively with a Price/Earnings ratio of 17.37.
Compared to the rest of the industry, the Price/Earnings ratio of ET is on the same level as its industry peers.
ET's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 12.76, which indicates a correct valuation of ET.
ET's Price/Forward Earnings ratio is in line with the industry average.
ET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
ET's Enterprise Value to EBITDA is on the same level as the industry average.
ET's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ET is cheaper than 66.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.47 | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y13.42%
EPS Next 3Y10.78%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 6.13%, which is a nice return.
Compared to an average industry Dividend Yield of 6.55, ET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
5.2 History
The dividend of ET decreases each year by -5.00%.
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)-5%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
99.30% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
DP99.3%
EPS Next 2Y13.42%
EPS Next 3Y10.78%
ENERGY TRANSFER LP
NYSE:ET (1/30/2025, 12:06:47 PM)
20.8443
+0.31 (+1.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners32.26%
Inst Owner ChangeN/A
Ins Owners9.2%
Ins Owner Change0.86%
Market Cap71.37B
Analysts86.4
Price Target21.77 (4.44%)
Short Float %1.3%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
Yearly Dividend1.31
Dividend Growth(5Y)-5%
DP99.3%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.81%
Min EPS beat(2)-48.79%
Max EPS beat(2)-8.83%
EPS beat(4)1
Avg EPS beat(4)-18.27%
Min EPS beat(4)-48.79%
Max EPS beat(4)3.31%
EPS beat(8)1
Avg EPS beat(8)-16.83%
EPS beat(12)4
Avg EPS beat(12)-11.77%
EPS beat(16)5
Avg EPS beat(16)3.36%
Revenue beat(2)0
Avg Revenue beat(2)-9.06%
Min Revenue beat(2)-9.55%
Max Revenue beat(2)-8.56%
Revenue beat(4)0
Avg Revenue beat(4)-6.36%
Min Revenue beat(4)-9.55%
Max Revenue beat(4)-0.21%
Revenue beat(8)0
Avg Revenue beat(8)-8.73%
Revenue beat(12)3
Avg Revenue beat(12)-3.21%
Revenue beat(16)5
Avg Revenue beat(16)0.32%
PT rev (1m)4.6%
PT rev (3m)10.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)0%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.38%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 12.76 | ||
| P/S | 0.85 | ||
| P/FCF | 10.47 | ||
| P/OCF | 6.99 | ||
| P/B | 2.03 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)1.2
EY5.76%
EPS(NY)1.63
Fwd EY7.84%
FCF(TTM)1.99
FCFY9.55%
OCF(TTM)2.98
OCFY14.31%
SpS24.43
BVpS10.29
TBVpS7.37
PEG (NY)1.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 13.02% | ||
| ROCE | 8.1% | ||
| ROIC | 6.4% | ||
| ROICexc | 6.4% | ||
| ROICexgc | 7.02% | ||
| OM | 10.85% | ||
| PM (TTM) | 5.49% | ||
| GM | 23.98% | ||
| FCFM | 8.15% |
ROA(3y)4.01%
ROA(5y)2.98%
ROE(3y)13.04%
ROE(5y)10.33%
ROIC(3y)6.82%
ROIC(5y)6.39%
ROICexc(3y)6.84%
ROICexc(5y)6.41%
ROICexgc(3y)7.52%
ROICexgc(5y)7.1%
ROCE(3y)8.63%
ROCE(5y)8.09%
ROICexcg growth 3Y7.54%
ROICexcg growth 5Y0.92%
ROICexc growth 3Y7.19%
ROICexc growth 5Y1.8%
OM growth 3Y-11.1%
OM growth 5Y-0.4%
PM growth 3YN/A
PM growth 5Y6.87%
GM growth 3Y-12.78%
GM growth 5Y-0.1%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 8.66 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 68.62% | ||
| Cap/Sales | 4.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.82% | ||
| Profit Quality | 148.53% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | N/A |
F-Score6
WACC7.73%
ROIC/WACC0.83
Cap/Depr(3y)75.53%
Cap/Depr(5y)111.09%
Cap/Sales(3y)3.98%
Cap/Sales(5y)7.22%
Profit Quality(3y)159.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.23%
EPS 3YN/A
EPS 5Y-0.31%
EPS Q2Q%-3.03%
EPS Next Y15.73%
EPS Next 2Y13.42%
EPS Next 3Y10.78%
EPS Next 5Y14.34%
Revenue 1Y (TTM)6.5%
Revenue growth 3Y26.36%
Revenue growth 5Y7.76%
Sales Q2Q%0.16%
Revenue Next Year7.09%
Revenue Next 2Y7.13%
Revenue Next 3Y6.19%
Revenue Next 5Y2.85%
EBIT growth 1Y14.17%
EBIT growth 3Y12.34%
EBIT growth 5Y7.32%
EBIT Next Year78.74%
EBIT Next 3Y24.79%
EBIT Next 5Y15.96%
FCF growth 1Y10.24%
FCF growth 3Y42.24%
FCF growth 5YN/A
OCF growth 1Y8.04%
OCF growth 3Y9.08%
OCF growth 5Y6.32%