ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
NYSE:EPD - US2937921078
31.93 USD
+0.28 (+0.88%)
31.85 USD
-0.08 (-0.25%)
Overall EPD gets a fundamental rating of 4 out of 10. We evaluated EPD against 210 industry peers in the Oil, Gas & Consumable Fuels industry. EPD has a medium profitability rating, but doesn't score so well on its financial health evaluation. EPD has a valuation in line with the averages, but on the other hand it scores bad on growth. EPD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EPD had positive earnings in the past year.
In the past year EPD had a positive cash flow from operations.
Each year in the past 5 years EPD has been profitable.
In the past 5 years EPD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.50%, EPD is in the better half of the industry, outperforming 75.24% of the companies in the same industry.
EPD's Return On Equity of 19.95% is amongst the best of the industry. EPD outperforms 86.67% of its industry peers.
With a decent Return On Invested Capital value of 8.77%, EPD is doing good in the industry, outperforming 74.76% of the companies in the same industry.
EPD had an Average Return On Invested Capital over the past 3 years of 8.99%. This is significantly below the industry average of 21.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 19.95% | ||
| ROIC | 8.77% |
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's Profit Margin of 10.61% is in line compared to the rest of the industry. EPD outperforms 56.67% of its industry peers.
In the last couple of years the Profit Margin of EPD has declined.
The Operating Margin of EPD (12.71%) is comparable to the rest of the industry.
EPD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.83%, EPD is doing worse than 66.19% of the companies in the same industry.
EPD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.71% | ||
| PM (TTM) | 10.61% | ||
| GM | 20.83% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EPD is still creating some value.
The number of shares outstanding for EPD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, EPD has less shares outstanding
Compared to 1 year ago, EPD has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of EPD is 7.78, which is on the high side as it means it would take EPD, 7.78 years of fcf income to pay off all of its debts.
EPD's Debt to FCF ratio of 7.78 is in line compared to the rest of the industry. EPD outperforms 55.24% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that EPD has dependencies on debt financing.
EPD has a worse Debt to Equity ratio (1.07) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC8.1%
2.3 Liquidity
EPD has a Current Ratio of 0.96. This is a bad value and indicates that EPD is not financially healthy enough and could expect problems in meeting its short term obligations.
EPD has a Current ratio (0.96) which is comparable to the rest of the industry.
A Quick Ratio of 0.69 indicates that EPD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, EPD is doing worse than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.67% over the past year.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
EPD shows a decrease in Revenue. In the last year, the revenue decreased by -0.20%.
Measured over the past years, EPD shows a quite strong growth in Revenue. The Revenue has been growing by 11.39% on average per year.
EPS 1Y (TTM)2.67%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%3.13%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-15.72%
3.2 Future
EPD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.94% yearly.
EPD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.83% yearly.
EPS Next Y2.37%
EPS Next 2Y4.67%
EPS Next 3Y4.79%
EPS Next 5Y4.94%
Revenue Next Year-3.05%
Revenue Next 2Y3.04%
Revenue Next 3Y5.6%
Revenue Next 5Y-0.83%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.87, the valuation of EPD can be described as reasonable.
68.57% of the companies in the same industry are more expensive than EPD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.44. EPD is valued rather cheaply when compared to this.
EPD is valuated reasonably with a Price/Forward Earnings ratio of 10.83.
EPD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPD is cheaper than 64.76% of the companies in the same industry.
EPD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPD is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as EPD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.42 | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.01
PEG (5Y)2.25
EPS Next 2Y4.67%
EPS Next 3Y4.79%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 6.86%, which is a nice return.
EPD's Dividend Yield is a higher than the industry average which is at 6.02.
EPD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.47%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
79.13% of the earnings are spent on dividend by EPD. This is not a sustainable payout ratio.
The dividend of EPD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP79.13%
EPS Next 2Y4.67%
EPS Next 3Y4.79%
31.93
+0.28 (+0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.79%
Inst Owner Change-0.85%
Ins Owners32.89%
Ins Owner Change0.07%
Market Cap69.14B
Analysts80.83
Price Target36.54 (14.44%)
Short Float %2.09%
Short Ratio7.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP79.13%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.29%
Min EPS beat(2)-9.84%
Max EPS beat(2)1.26%
EPS beat(4)2
Avg EPS beat(4)-1.64%
Min EPS beat(4)-9.84%
Max EPS beat(4)4.83%
EPS beat(8)3
Avg EPS beat(8)-1.72%
EPS beat(12)5
Avg EPS beat(12)-1.13%
EPS beat(16)7
Avg EPS beat(16)-0.96%
Revenue beat(2)1
Avg Revenue beat(2)-5.95%
Min Revenue beat(2)-20.95%
Max Revenue beat(2)9.05%
Revenue beat(4)1
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-20.95%
Max Revenue beat(4)9.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-3.02%
Revenue beat(16)8
Avg Revenue beat(16)3.21%
PT rev (1m)-0.35%
PT rev (3m)-2.29%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-3.98%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-3.57%
Revenue NQ rev (1m)3.23%
Revenue NQ rev (3m)-6.83%
Revenue NY rev (1m)-5.33%
Revenue NY rev (3m)-9.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 10.83 | ||
| P/S | 1.26 | ||
| P/FCF | 16.42 | ||
| P/OCF | 7.85 | ||
| P/B | 2.37 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 10.72 |
EPS(TTM)2.69
EY8.42%
EPS(NY)2.95
Fwd EY9.23%
FCF(TTM)1.94
FCFY6.09%
OCF(TTM)4.07
OCFY12.74%
SpS25.29
BVpS13.45
TBVpS9.01
PEG (NY)5.01
PEG (5Y)2.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 19.95% | ||
| ROCE | 11.1% | ||
| ROIC | 8.77% | ||
| ROICexc | 8.89% | ||
| ROICexgc | 10.53% | ||
| OM | 12.71% | ||
| PM (TTM) | 10.61% | ||
| GM | 20.83% | ||
| FCFM | 7.69% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.78 | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 186.6% | ||
| Cap/Sales | 8.39% | ||
| Interest Coverage | 5.3 | ||
| Cash Conversion | 93.47% | ||
| Profit Quality | 72.5% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | N/A |
F-Score6
WACC8.1%
ROIC/WACC1.08
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)2.67%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%3.13%
EPS Next Y2.37%
EPS Next 2Y4.67%
EPS Next 3Y4.79%
EPS Next 5Y4.94%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-15.72%
Revenue Next Year-3.05%
Revenue Next 2Y3.04%
Revenue Next 3Y5.6%
Revenue Next 5Y-0.83%
EBIT growth 1Y2.29%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year38.32%
EBIT Next 3Y14.78%
EBIT Next 5Y10.11%
FCF growth 1Y-8.34%
FCF growth 3Y-17.19%
FCF growth 5Y12.42%
OCF growth 1Y21.28%
OCF growth 3Y-1.58%
OCF growth 5Y4.47%