ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
NYSE:EPD - New York Stock Exchange, Inc. - US2937921078 - Currency: USD
EPD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of EPD while its profitability can be described as average. 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
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.
EPD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EPD has a better Return On Assets (7.66%) than 75.12% of its industry peers.
The Return On Equity of EPD (19.95%) is better than 83.57% of its industry peers.
EPD has a Return On Invested Capital of 9.04%. This is in the better half of the industry: EPD outperforms 70.89% 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 25.87%.
The last Return On Invested Capital (9.04%) for EPD is above the 3 year average (8.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 19.95% | ||
| ROIC | 9.04% |
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 (10.16%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EPD has declined.
EPD has a Operating Margin (12.17%) which is comparable to the rest of the industry.
EPD's Operating Margin has declined in the last couple of years.
EPD has a worse Gross Margin (19.82%) than 66.20% of its industry peers.
EPD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.17% | ||
| PM (TTM) | 10.16% | ||
| GM | 19.82% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EPD is destroying value.
Compared to 1 year ago, EPD has about the same amount of shares outstanding.
EPD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EPD has a worse debt to assets ratio.
2.2 Solvency
EPD has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as EPD would need 8.40 years to pay back of all of its debts.
EPD's Debt to FCF ratio of 8.40 is in line compared to the rest of the industry. EPD outperforms 55.87% of its industry peers.
EPD has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
EPD has a worse Debt to Equity ratio (1.01) than 69.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC9.59%
2.3 Liquidity
A Current Ratio of 0.86 indicates that EPD may have some problems paying its short term obligations.
EPD's Current ratio of 0.86 is on the low side compared to the rest of the industry. EPD is outperformed by 65.26% of its industry peers.
EPD has a Quick Ratio of 0.86. 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 Quick ratio of EPD (0.64) is worse than 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.71% over the past year.
EPD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
Looking at the last year, EPD shows a quite strong growth in Revenue. The Revenue has grown by 9.31% in the last year.
EPD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.39% yearly.
EPS 1Y (TTM)4.71%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)9.31%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%4.45%
3.2 Future
EPD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.02% yearly.
EPD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y6.16%
EPS Next 2Y6.19%
EPS Next 3Y5.48%
EPS Next 5Y3.02%
Revenue Next Year6.76%
Revenue Next 2Y8.08%
Revenue Next 3Y10.2%
Revenue Next 5Y2.02%
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 decreasing.
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
A Price/Earnings ratio of 11.72 indicates a reasonable valuation of EPD.
61.50% 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 25.82. EPD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.32, the valuation of EPD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 63.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
EPD's Enterprise Value to EBITDA ratio is in line with the industry average.
EPD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EPD is cheaper than 60.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.03 | ||
| EV/EBITDA | 10.62 |
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)1.9
PEG (5Y)2.22
EPS Next 2Y6.19%
EPS Next 3Y5.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.73%, EPD is a good candidate for dividend investing.
EPD's Dividend Yield is a higher than the industry average which is at 6.77.
Compared to an average S&P500 Dividend Yield of 2.36, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.73% |
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
78.80% of the earnings are spent on dividend by EPD. This is not a sustainable payout ratio.
EPD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.8%
EPS Next 2Y6.19%
EPS Next 3Y5.48%
31.29
-0.1 (-0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.71%
Inst Owner Change-0.2%
Ins Owners32.8%
Ins Owner Change7.2%
Market Cap67.76B
Analysts81.67
Price Target37.86 (21%)
Short Float %1.62%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.73% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP78.8%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.51%
Min EPS beat(2)-9.84%
Max EPS beat(2)4.83%
EPS beat(4)1
Avg EPS beat(4)-2.92%
Min EPS beat(4)-9.84%
Max EPS beat(4)4.83%
EPS beat(8)2
Avg EPS beat(8)-2.27%
EPS beat(12)5
Avg EPS beat(12)-1.15%
EPS beat(16)6
Avg EPS beat(16)-1.1%
Revenue beat(2)1
Avg Revenue beat(2)4.17%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)9.05%
Revenue beat(4)1
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)9.05%
Revenue beat(8)3
Avg Revenue beat(8)0.03%
Revenue beat(12)5
Avg Revenue beat(12)1.14%
Revenue beat(16)9
Avg Revenue beat(16)5.96%
PT rev (1m)-0.19%
PT rev (3m)2.95%
EPS NQ rev (1m)-1.74%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)-2.34%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)4.92%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)3.67%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 10.32 | ||
| P/S | 1.19 | ||
| P/FCF | 18.03 | ||
| P/OCF | 8.15 | ||
| P/B | 2.34 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 10.62 |
EPS(TTM)2.67
EY8.53%
EPS(NY)3.03
Fwd EY9.69%
FCF(TTM)1.74
FCFY5.55%
OCF(TTM)3.84
OCFY12.27%
SpS26.26
BVpS13.37
TBVpS8.91
PEG (NY)1.9
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 19.95% | ||
| ROCE | 11.44% | ||
| ROIC | 9.04% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 10.8% | ||
| OM | 12.17% | ||
| PM (TTM) | 10.16% | ||
| GM | 19.82% | ||
| FCFM | 6.61% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 8.4 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 187.54% | ||
| Cap/Sales | 8.02% | ||
| Interest Coverage | 5.18 | ||
| Cash Conversion | 88.92% | ||
| Profit Quality | 65.05% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | N/A |
F-Score6
WACC9.59%
ROIC/WACC0.94
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 Y6.16%
EPS Next 2Y6.19%
EPS Next 3Y5.48%
EPS Next 5Y3.02%
Revenue 1Y (TTM)9.31%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%4.45%
Revenue Next Year6.76%
Revenue Next 2Y8.08%
Revenue Next 3Y10.2%
Revenue Next 5Y2.02%
EBIT growth 1Y5.1%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year43.1%
EBIT Next 3Y15.79%
EBIT Next 5Y10.97%
FCF growth 1Y-27.84%
FCF growth 3Y-17.19%
FCF growth 5Y12.42%
OCF growth 1Y11.25%
OCF growth 3Y-1.58%
OCF growth 5Y4.47%