ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
USA - NYSE:ET - US29273V1008
16.68 USD
-0.22 (-1.3%)
16.6894 USD
+0.01 (+0.06%)
We assign a fundamental rating of 4 out of 10 to ET. ET was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. ET has a medium profitability rating, but doesn't score so well on its financial health evaluation. ET is not valued too expensively and it also shows a decent 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 (3.57%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.85%, ET is in the better half of the industry, outperforming 69.67% of the companies in the same industry.
ET has a Return On Invested Capital of 6.47%. This is comparable to the rest of the industry: ET outperforms 58.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ET is significantly below the industry average of 21.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.85% | ||
| ROIC | 6.47% |
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 (5.55%) which is comparable to the rest of the industry.
ET's Profit Margin has declined in the last couple of years.
ET's Operating Margin of 11.50% is in line compared to the rest of the industry. ET outperforms 42.18% of its industry peers.
In the last couple of years the Operating Margin of ET has declined.
The Gross Margin of ET (26.42%) is worse than 62.09% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.5% | ||
| PM (TTM) | 5.55% | ||
| GM | 26.42% |
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.
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 10.65, which is on the high side as it means it would take ET, 10.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ET (10.65) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that ET has dependencies on debt financing.
The Debt to Equity ratio of ET (1.75) is worse than 78.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.81
WACC7.96%
2.3 Liquidity
ET has a Current Ratio of 1.15. This is a normal value and indicates that ET is financially healthy and should not expect problems in meeting its short term obligations.
ET has a Current ratio of 1.15. This is comparable to the rest of the industry: ET outperforms 49.29% of its industry peers.
ET has a Quick Ratio of 1.15. This is a bad value and indicates that ET is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.92, ET perfoms like the industry average, outperforming 48.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.61% over the past 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 decrease in Revenue. The Revenue has decreased by -3.65% 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)6.61%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%68.42%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-7.17%
3.2 Future
The Earnings Per Share is expected to grow by 16.96% on average over the next years. This is quite good.
ET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y31.3%
EPS Next 2Y20.83%
EPS Next 3Y14.77%
EPS Next 5Y16.96%
Revenue Next Year0.43%
Revenue Next 2Y4.33%
Revenue Next 3Y4.18%
Revenue Next 5Y5.42%
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
ET is valuated correctly with a Price/Earnings ratio of 12.93.
The rest of the industry has a similar Price/Earnings ratio as ET.
ET's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
Based on the Price/Forward Earnings ratio of 10.20, the valuation of ET can be described as reasonable.
Based on the Price/Forward Earnings ratio, ET is valued a bit cheaper than 67.30% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. ET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 10.2 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ET indicates a somewhat cheap valuation: ET is cheaper than 75.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.04 | ||
| EV/EBITDA | 8 |
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 14.77% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y20.83%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.38%, ET is a good candidate for dividend investing.
ET's Dividend Yield is a higher than the industry average which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.38, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.38% |
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
103.92% of the earnings are spent on dividend by ET. 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.
DP103.92%
EPS Next 2Y20.83%
EPS Next 3Y14.77%
16.68
-0.22 (-1.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners30.55%
Inst Owner ChangeN/A
Ins Owners9.21%
Ins Owner Change1.68%
Market Cap57.26B
Analysts86.67
Price Target22.91 (37.35%)
Short Float %0.84%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.38% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP103.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.39%
Min EPS beat(2)-8.35%
Max EPS beat(2)-2.43%
EPS beat(4)0
Avg EPS beat(4)-11.2%
Min EPS beat(4)-25.18%
Max EPS beat(4)-2.43%
EPS beat(8)1
Avg EPS beat(8)-14.19%
EPS beat(12)1
Avg EPS beat(12)-16.3%
EPS beat(16)4
Avg EPS beat(16)-12.98%
Revenue beat(2)0
Avg Revenue beat(2)-10.1%
Min Revenue beat(2)-14.95%
Max Revenue beat(2)-5.25%
Revenue beat(4)0
Avg Revenue beat(4)-10.89%
Min Revenue beat(4)-14.95%
Max Revenue beat(4)-5.25%
Revenue beat(8)0
Avg Revenue beat(8)-7.55%
Revenue beat(12)0
Avg Revenue beat(12)-9.26%
Revenue beat(16)4
Avg Revenue beat(16)-4.04%
PT rev (1m)-0.13%
PT rev (3m)-1.47%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-5.79%
EPS NY rev (1m)-2.15%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 10.2 | ||
| P/S | 0.71 | ||
| P/FCF | 10.04 | ||
| P/OCF | 5.14 | ||
| P/B | 1.65 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 8 |
EPS(TTM)1.29
EY7.73%
EPS(NY)1.64
Fwd EY9.8%
FCF(TTM)1.66
FCFY9.96%
OCF(TTM)3.25
OCFY19.46%
SpS23.47
BVpS10.13
TBVpS7.31
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.85% | ||
| ROCE | 8.19% | ||
| ROIC | 6.47% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 7.09% | ||
| OM | 11.5% | ||
| PM (TTM) | 5.55% | ||
| GM | 26.42% | ||
| FCFM | 7.08% |
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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.66 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 99.85% | ||
| Cap/Sales | 6.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.71% | ||
| Profit Quality | 127.59% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score7
WACC7.96%
ROIC/WACC0.81
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)6.61%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%68.42%
EPS Next Y31.3%
EPS Next 2Y20.83%
EPS Next 3Y14.77%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-7.17%
Revenue Next Year0.43%
Revenue Next 2Y4.33%
Revenue Next 3Y4.18%
Revenue Next 5Y5.42%
EBIT growth 1Y1.56%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year63.76%
EBIT Next 3Y21.53%
EBIT Next 5Y14.35%
FCF growth 1Y-13.09%
FCF growth 3Y-4.16%
FCF growth 5Y28.49%
OCF growth 1Y9.11%
OCF growth 3Y1.02%
OCF growth 5Y7.39%