ENTERPRISE PRODUCTS PARTNERS (EPD)
US2937921078
Taking everything into account, EPD scores 4 out of 10 in our fundamental rating. EPD was compared to 214 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EPD had positive earnings in the past year.
EPD had a positive operating cash flow in the past year.
In the past 5 years EPD has always been profitable.
EPD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EPD (7.72%) is comparable to the rest of the industry.
With a decent Return On Equity value of 19.76%, EPD is doing good in the industry, outperforming 60.09% of the companies in the same industry.
EPD has a Return On Invested Capital (8.86%) which is in line with its industry peers.
EPD had an Average Return On Invested Capital over the past 3 years of 8.73%. This is significantly below the industry average of 45.95%.
The 3 year average ROIC (8.73%) for EPD is below the current ROIC(8.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 19.76% | ||
| ROIC | 8.86% |
ROA(3y)7.51%
ROA(5y)7.15%
ROE(3y)19.43%
ROE(5y)18.42%
ROIC(3y)8.73%
ROIC(5y)8.51%
1.3 Margins
With a Profit Margin value of 11.02%, EPD perfoms like the industry average, outperforming 41.31% of the companies in the same industry.
In the last couple of years the Profit Margin of EPD has remained more or less at the same level.
EPD's Operating Margin of 13.05% is on the low side compared to the rest of the industry. EPD is outperformed by 65.73% of its industry peers.
In the last couple of years the Operating Margin of EPD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 20.95%, EPD is doing worse than 69.48% of the companies in the same industry.
In the last couple of years the Gross Margin of EPD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.05% | ||
| PM (TTM) | 11.02% | ||
| GM | 20.95% |
OM growth 3Y-13.55%
OM growth 5Y-0.74%
PM growth 3Y-7.13%
PM growth 5Y-0.61%
GM growth 3Y-12.54%
GM growth 5Y-1.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPD is creating some value.
Compared to 1 year ago, EPD has about the same amount of shares outstanding.
Compared to 5 years ago, EPD has less shares outstanding
EPD has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of EPD is 6.68, which is on the high side as it means it would take EPD, 6.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.68, EPD is in line with its industry, outperforming 50.70% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that EPD is somewhat dependend on debt financing.
EPD has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: EPD underperforms 70.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | N/A |
ROIC/WACC1.19
WACC7.45%
2.3 Liquidity
A Current Ratio of 0.93 indicates that EPD may have some problems paying its short term obligations.
EPD has a Current ratio of 0.93. This is in the lower half of the industry: EPD underperforms 66.20% of its industry peers.
A Quick Ratio of 0.68 indicates that EPD may have some problems paying its short term obligations.
EPD's Quick ratio of 0.68 is on the low side compared to the rest of the industry. EPD is outperformed by 75.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
EPD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.80%.
EPD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.11% yearly.
Looking at the last year, EPD shows a very negative growth in Revenue. The Revenue has decreased by -14.56% in the last year.
The Revenue has been growing slightly by 6.36% on average over the past years.
EPS 1Y (TTM)0.8%
EPS 3Y13.8%
EPS 5Y4.11%
EPS growth Q2Q10.77%
Revenue 1Y (TTM)-14.56%
Revenue growth 3Y22.27%
Revenue growth 5Y6.36%
Revenue growth Q2Q7.12%
3.2 Future
Based on estimates for the next years, EPD will show a small growth in Earnings Per Share. The EPS will grow by 2.33% on average per year.
EPD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.49% yearly.
EPS Next Y8.02%
EPS Next 2Y6.45%
EPS Next 3Y5.89%
EPS Next 5Y2.33%
Revenue Next Year13.61%
Revenue Next 2Y8.47%
Revenue Next 3Y7.52%
Revenue Next 5Y3.49%
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 11.48, the valuation of EPD can be described as reasonable.
EPD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of EPD to the average of the S&P500 Index (25.20), we can say EPD is valued rather cheaply.
The Price/Forward Earnings ratio is 10.63, which indicates a very decent valuation of EPD.
Based on the Price/Forward Earnings ratio, EPD is valued a bit cheaper than 63.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. EPD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPD is valued a bit more expensive than the industry average as 68.08% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as EPD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.58 | ||
| EV/EBITDA | 10.41 |
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)1.43
PEG (5Y)2.79
EPS Next 2Y6.45%
EPS Next 3Y5.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.24%, EPD is a good candidate for dividend investing.
EPD's Dividend Yield is a higher than the industry average which is at 5.79.
Compared to an average S&P500 Dividend Yield of 2.44, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.24% |
5.2 History
The dividend of EPD has a limited annual growth rate of 2.94%.
EPD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)2.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EPD pays out 78.50% 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.
DP78.5%
EPS Next 2Y6.45%
EPS Next 3Y5.89%
ENTERPRISE PRODUCTS PARTNERS
NYSE:EPD (4/25/2024, 7:04:00 PM)
After market: 28.96 +0.03 (+0.1%)28.93
-0.12 (-0.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap62.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.43
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 19.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.05% | ||
| PM (TTM) | 11.02% | ||
| GM | 20.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.8%
EPS 3Y13.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.56%
Revenue growth 3Y22.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y