EnLink Midstream LLC (ENLC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENLC - US29336T1007
14.12 USD
-0.03 (-0.21%)
13.86 USD
-0.26 (-1.84%)
ENLC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ENLC while its profitability can be described as average. ENLC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- ENLC had positive earnings in the past year.
- In the past year ENLC had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: ENLC reported negative net income in multiple years.
- Each year in the past 5 years ENLC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ENLC (1.27%) is worse than 69.90% of its industry peers.
- Looking at the Return On Equity, with a value of 10.58%, ENLC is in line with its industry, outperforming 47.57% of the companies in the same industry.
- ENLC has a Return On Invested Capital of 8.97%. This is in the better half of the industry: ENLC outperforms 63.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ENLC is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (8.97%) for ENLC is above the 3 year average (6.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 10.58% | ||
| ROIC | 8.97% |
ROA(3y)2.31%
ROA(5y)-2%
ROE(3y)16.65%
ROE(5y)-6.19%
ROIC(3y)6.78%
ROIC(5y)5.75%
1.3 Margins
- The Profit Margin of ENLC (1.50%) is worse than 70.87% of its industry peers.
- ENLC has a Operating Margin of 9.76%. This is in the lower half of the industry: ENLC underperforms 67.48% of its industry peers.
- In the last couple of years the Operating Margin of ENLC has grown nicely.
- Looking at the Gross Margin, with a value of 30.95%, ENLC is in line with its industry, outperforming 41.26% of the companies in the same industry.
- ENLC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.76% | ||
| PM (TTM) | 1.5% | ||
| GM | 30.95% |
OM growth 3Y1.09%
OM growth 5Y8.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.49%
GM growth 5Y6.17%
2. Health
2.1 Basic Checks
- ENLC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- ENLC has less shares outstanding than it did 1 year ago.
- The debt/assets ratio for ENLC is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of ENLC is 7.34, which is on the high side as it means it would take ENLC, 7.34 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.34, ENLC is in line with its industry, outperforming 50.97% of the companies in the same industry.
- ENLC has a Debt/Equity ratio of 4.39. This is a high value indicating a heavy dependency on external financing.
- ENLC has a Debt to Equity ratio of 4.39. This is amonst the worse of the industry: ENLC underperforms 91.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.39 | ||
| Debt/FCF | 7.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC8.29%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that ENLC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.42, ENLC is doing worse than 92.72% of the companies in the same industry.
- ENLC has a Quick Ratio of 0.42. This is a bad value and indicates that ENLC is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of ENLC (0.36) is worse than 91.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- ENLC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.90%.
- Measured over the past years, ENLC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.64% on average per year.
- ENLC shows a decrease in Revenue. In the last year, the revenue decreased by -6.07%.
- ENLC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.17% yearly.
EPS 1Y (TTM)-61.9%
EPS 3YN/A
EPS 5Y-24.64%
EPS Q2Q%-150%
Revenue 1Y (TTM)-6.07%
Revenue growth 3Y21.01%
Revenue growth 5Y-2.17%
Sales Q2Q%-7.89%
3.2 Future
- ENLC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.06% yearly.
- Based on estimates for the next years, ENLC will show a small growth in Revenue. The Revenue will grow by 1.42% on average per year.
EPS Next Y-13.65%
EPS Next 2Y32.73%
EPS Next 3Y39.06%
EPS Next 5YN/A
Revenue Next Year-4.62%
Revenue Next 2Y4.52%
Revenue Next 3Y1.42%
Revenue Next 5YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ENLC is valuated quite expensively with a Price/Earnings ratio of 58.83.
- Based on the Price/Earnings ratio, ENLC is valued a bit more expensive than 72.33% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. ENLC is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 18.21 indicates a rather expensive valuation of ENLC.
- ENLC's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, ENLC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENLC.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENLC indicates a somewhat cheap valuation: ENLC is cheaper than 67.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
- ENLC's earnings are expected to grow with 39.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.73%
EPS Next 3Y39.06%
5. Dividend
5.1 Amount
- ENLC has a Yearly Dividend Yield of 3.75%.
- ENLC's Dividend Yield is comparable with the industry average which is at 3.73.
- ENLC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
- The dividend of ENLC decreases each year by -13.77%.
- ENLC has been paying a dividend for at least 10 years, so it has a reliable track record.
- ENLC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.77%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- ENLC pays out 241.26% of its income as dividend. This is not a sustainable payout ratio.
DP241.26%
EPS Next 2Y32.73%
EPS Next 3Y39.06%
EnLink Midstream LLC / ENLC FAQ
Can you provide the ChartMill fundamental rating for EnLink Midstream LLC?
ChartMill assigns a fundamental rating of 3 / 10 to ENLC.
Can you provide the valuation status for EnLink Midstream LLC?
ChartMill assigns a valuation rating of 3 / 10 to EnLink Midstream LLC (ENLC). This can be considered as Overvalued.
What is the profitability of ENLC stock?
EnLink Midstream LLC (ENLC) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ENLC stock?
The Price/Earnings (PE) ratio for EnLink Midstream LLC (ENLC) is 58.83 and the Price/Book (PB) ratio is 6.82.
Can you provide the expected EPS growth for ENLC stock?
The Earnings per Share (EPS) of EnLink Midstream LLC (ENLC) is expected to decline by -13.65% in the next year.