ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
USA - NYSE:ET - US29273V1008
17.54 USD
+0.09 (+0.52%)
17.55 USD
+0.01 (+0.06%)
Overall ET gets a fundamental rating of 4 out of 10. We evaluated ET against 210 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 is not valued too expensively and it also shows a decent growth rate. Finally ET also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ET was profitable.
ET had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.57%, ET perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.85%, ET is in the better half of the industry, outperforming 68.57% 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 58.10% 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 21.90%.
| 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
With a Profit Margin value of 5.55%, ET perfoms like the industry average, outperforming 46.19% of the companies in the same industry.
In the last couple of years the Profit Margin of ET has declined.
ET has a Operating Margin (11.50%) which is in line with its industry peers.
ET's Operating Margin has declined in the last couple of years.
The Gross Margin of ET (26.42%) is worse than 62.38% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.5% | ||
| 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.
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.
The debt/assets ratio for ET is higher compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 10.65, ET is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that ET has dependencies on debt financing.
ET has a Debt to Equity ratio of 1.75. This is in the lower half of the industry: ET underperforms 77.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.81
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.15 indicates that ET should not have too much problems paying its short term obligations.
ET has a Current ratio of 1.15. This is comparable to the rest of the industry: ET outperforms 50.48% 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.
ET has a Quick ratio (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
ET shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.61%.
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.
Looking at the last year, ET shows a decrease in Revenue. The Revenue has decreased by -3.65% in the last year.
The Revenue has been growing by 8.81% on average over the past years. This is quite good.
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
ET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.96% yearly.
ET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y34.19%
EPS Next 2Y22.39%
EPS Next 3Y16.23%
EPS Next 5Y16.96%
Revenue Next Year0.28%
Revenue Next 2Y4.38%
Revenue Next 3Y4.19%
Revenue Next 5Y5.42%
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
With a Price/Earnings ratio of 13.60, ET is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as ET.
When comparing the Price/Earnings ratio of ET to the average of the S&P500 Index (27.30), we can say ET is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.46, the valuation of ET can be described as reasonable.
68.57% of the companies in the same industry are more expensive than ET, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. ET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
ET's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 10.56 | ||
| EV/EBITDA | 8.18 |
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.
ET's earnings are expected to grow with 16.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y22.39%
EPS Next 3Y16.23%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 7.55%, which is a nice return.
Compared to an average industry Dividend Yield of 6.18, ET pays a better dividend. On top of this ET pays more dividend than 82.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.55% |
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 2Y22.39%
EPS Next 3Y16.23%
17.54
+0.09 (+0.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.25%
Inst Owner ChangeN/A
Ins Owners9.16%
Ins Owner Change1.68%
Market Cap60.21B
Analysts86.92
Price Target22.97 (30.96%)
Short Float %0.87%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.55% |
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)-0.66%
PT rev (3m)-1.21%
EPS NQ rev (1m)-2.76%
EPS NQ rev (3m)-6.55%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)-5.03%
Revenue NY rev (3m)-5.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 10.46 | ||
| P/S | 0.75 | ||
| P/FCF | 10.56 | ||
| P/OCF | 5.4 | ||
| P/B | 1.73 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)1.29
EY7.35%
EPS(NY)1.68
Fwd EY9.56%
FCF(TTM)1.66
FCFY9.47%
OCF(TTM)3.25
OCFY18.51%
SpS23.47
BVpS10.13
TBVpS7.31
PEG (NY)0.4
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
WACC7.98%
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 Y34.19%
EPS Next 2Y22.39%
EPS Next 3Y16.23%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-7.17%
Revenue Next Year0.28%
Revenue Next 2Y4.38%
Revenue Next 3Y4.19%
Revenue Next 5Y5.42%
EBIT growth 1Y1.56%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year65.12%
EBIT Next 3Y21.78%
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%