ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
NYSE:EPD - New York Stock Exchange, Inc. - US2937921078 - Currency: USD
Overall EPD gets a fundamental rating of 4 out of 10. We evaluated EPD against 212 industry peers in the Oil, Gas & Consumable Fuels industry. While EPD is still in line with the averages on profitability rating, there are concerns on its financial health. EPD has a decent growth rate and is not valued too expensively. EPD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EPD was profitable.
In the past year EPD had a positive cash flow from operations.
EPD had positive earnings in each of the past 5 years.
Each year in the past 5 years EPD had a positive operating cash flow.
1.2 Ratios
EPD has a better Return On Assets (7.57%) than 73.71% of its industry peers.
Looking at the Return On Equity, with a value of 20.29%, EPD belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
EPD's Return On Invested Capital of 8.91% is fine compared to the rest of the industry. EPD outperforms 69.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EPD is significantly below the industry average of 25.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.29% | ||
| ROIC | 8.91% |
ROA(3y)7.76%
ROA(5y)7.18%
ROE(3y)20.15%
ROE(5y)18.79%
ROIC(3y)8.99%
ROIC(5y)8.59%
1.3 Margins
EPD has a Profit Margin of 10.39%. This is comparable to the rest of the industry: EPD outperforms 54.93% of its industry peers.
In the last couple of years the Profit Margin of EPD has declined.
EPD has a Operating Margin (12.43%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EPD has declined.
EPD's Gross Margin of 19.99% is on the low side compared to the rest of the industry. EPD is outperformed by 67.14% of its industry peers.
EPD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.43% | ||
| PM (TTM) | 10.39% | ||
| GM | 19.99% |
OM growth 3Y-4.14%
OM growth 5Y-6.3%
PM growth 3Y-2.66%
PM growth 5Y-5.68%
GM growth 3Y-2.8%
GM growth 5Y-5.88%
2. Health
2.1 Basic Checks
EPD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EPD has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for EPD has been reduced compared to 5 years ago.
Compared to 1 year ago, EPD has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of EPD is 8.93, which is on the high side as it means it would take EPD, 8.93 years of fcf income to pay off all of its debts.
EPD's Debt to FCF ratio of 8.93 is in line compared to the rest of the industry. EPD outperforms 52.11% of its industry peers.
EPD has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
EPD has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: EPD underperforms 71.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 8.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.92
WACC9.67%
2.3 Liquidity
EPD has a Current Ratio of 1.00. This is a bad value and indicates that EPD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of EPD (1.00) is comparable to the rest of the industry.
A Quick Ratio of 0.74 indicates that EPD may have some problems paying its short term obligations.
EPD has a Quick ratio of 0.74. This is in the lower half of the industry: EPD underperforms 63.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
EPD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.71%.
EPD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
EPD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.08%.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
EPS 1Y (TTM)4.71%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%4.45%
3.2 Future
The Earnings Per Share is expected to grow by 3.02% on average over the next years.
Based on estimates for the next years, EPD will show a small growth in Revenue. The Revenue will grow by 2.02% on average per year.
EPS Next Y8.7%
EPS Next 2Y7.44%
EPS Next 3Y6.42%
EPS Next 5Y3.02%
Revenue Next Year2.98%
Revenue Next 2Y5.67%
Revenue Next 3Y8.59%
Revenue Next 5Y2.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 11.41, the valuation of EPD can be described as reasonable.
Based on the Price/Earnings ratio, EPD is valued a bit cheaper than 62.91% of the companies in the same industry.
EPD is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
EPD is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
Based on the Price/Forward Earnings ratio, EPD is valued a bit cheaper than the industry average as 64.32% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EPD.
EPD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.47 | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
EPD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.31
PEG (5Y)2.16
EPS Next 2Y7.44%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 7.16%, which is a nice return.
Compared to an average industry Dividend Yield of 7.34, EPD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.16% |
5.2 History
The dividend of EPD has a limited annual growth rate of 3.47%.
EPD has paid a dividend for at least 10 years, which is a reliable track record.
EPD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.47%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
EPD pays out 77.25% of its income as dividend. This is not a sustainable payout ratio.
EPD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP77.25%
EPS Next 2Y7.44%
EPS Next 3Y6.42%
30.46
+0.59 (+1.98%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.71%
Inst Owner Change0.17%
Ins Owners32.8%
Ins Owner Change7.05%
Market Cap65.97B
Analysts81.67
Price Target37.99 (24.72%)
Short Float %1.69%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.16% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP77.25%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1%
Min EPS beat(2)-2.82%
Max EPS beat(2)4.83%
EPS beat(4)1
Avg EPS beat(4)-1.02%
Min EPS beat(4)-3.83%
Max EPS beat(4)4.83%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)6
Avg EPS beat(12)0.56%
EPS beat(16)7
Avg EPS beat(16)1.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-0.71%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)2.9%
Revenue beat(8)2
Avg Revenue beat(8)-2.67%
Revenue beat(12)5
Avg Revenue beat(12)2.27%
Revenue beat(16)9
Avg Revenue beat(16)7.16%
PT rev (1m)1.11%
PT rev (3m)3.29%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 9.81 | ||
| P/S | 1.17 | ||
| P/FCF | 18.47 | ||
| P/OCF | 8.13 | ||
| P/B | 2.29 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)2.67
EY8.77%
EPS(NY)3.11
Fwd EY10.19%
FCF(TTM)1.65
FCFY5.41%
OCF(TTM)3.75
OCFY12.3%
SpS25.96
BVpS13.29
TBVpS8.8
PEG (NY)1.31
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.29% | ||
| ROCE | 11.27% | ||
| ROIC | 8.91% | ||
| ROICexc | 8.99% | ||
| ROICexgc | 10.68% | ||
| OM | 12.43% | ||
| PM (TTM) | 10.39% | ||
| GM | 19.99% | ||
| FCFM | 6.35% |
ROA(3y)7.76%
ROA(5y)7.18%
ROE(3y)20.15%
ROE(5y)18.79%
ROIC(3y)8.99%
ROIC(5y)8.59%
ROICexc(3y)9.03%
ROICexc(5y)8.74%
ROICexgc(3y)10.8%
ROICexgc(5y)10.44%
ROCE(3y)11.38%
ROCE(5y)10.88%
ROICexcg growth 3Y1.46%
ROICexcg growth 5Y0.63%
ROICexc growth 3Y1.61%
ROICexc growth 5Y1.06%
OM growth 3Y-4.14%
OM growth 5Y-6.3%
PM growth 3Y-2.66%
PM growth 5Y-5.68%
GM growth 3Y-2.8%
GM growth 5Y-5.88%
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 8.93 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 188.24% | ||
| Cap/Sales | 8.08% | ||
| Interest Coverage | 5.57 | ||
| Cash Conversion | 86.3% | ||
| Profit Quality | 61.14% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-Score6
WACC9.67%
ROIC/WACC0.92
Cap/Depr(3y)140.35%
Cap/Depr(5y)136.99%
Cap/Sales(3y)6.01%
Cap/Sales(5y)7.11%
Profit Quality(3y)83.78%
Profit Quality(5y)91.54%
High Growth Momentum
Growth
EPS 1Y (TTM)4.71%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%-3.03%
EPS Next Y8.7%
EPS Next 2Y7.44%
EPS Next 3Y6.42%
EPS Next 5Y3.02%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%4.45%
Revenue Next Year2.98%
Revenue Next 2Y5.67%
Revenue Next 3Y8.59%
Revenue Next 5Y2.02%
EBIT growth 1Y7.71%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year43.1%
EBIT Next 3Y15.79%
EBIT Next 5Y10.97%
FCF growth 1Y-17.01%
FCF growth 3Y-17.19%
FCF growth 5Y12.42%
OCF growth 1Y7.21%
OCF growth 3Y-1.58%
OCF growth 5Y4.47%