ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
NYSE:EPD - New York Stock Exchange, Inc. - US2937921078 - Currency: USD
We assign a fundamental rating of 4 out of 10 to EPD. EPD was compared to 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. Finally EPD also has an excellent dividend rating.
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.
EPD had positive earnings in each of the past 5 years.
In the past 5 years EPD always reported a positive cash flow from operatings.
1.2 Ratios
EPD has a Return On Assets of 7.66%. This is in the better half of the industry: EPD outperforms 76.06% of its industry peers.
EPD's Return On Equity of 19.95% is amongst the best of the industry. EPD outperforms 84.98% of its industry peers.
EPD's Return On Invested Capital of 9.04% is fine compared to the rest of the industry. EPD outperforms 71.83% 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 23.55%.
The 3 year average ROIC (8.99%) for EPD is below the current ROIC(9.04%), indicating increased profibility in the last year.
| 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 in line with its industry peers.
EPD's Profit Margin has declined in the last couple of years.
EPD has a Operating Margin of 12.17%. This is comparable to the rest of the industry: EPD outperforms 42.25% of its industry peers.
EPD's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 19.82%, EPD is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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) just above the Cost of Capital (WACC), EPD is creating some value.
EPD has about the same amout of shares outstanding than it did 1 year ago.
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 has a Debt to FCF ratio (8.40) which is in line with 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's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. EPD is outperformed by 69.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | N/A |
ROIC/WACC1.24
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.86 indicates that EPD may have some problems paying its short term obligations.
EPD has a worse Current ratio (0.86) than 66.20% of its industry peers.
A Quick Ratio of 0.64 indicates that EPD may have some problems paying its short term obligations.
EPD has a worse Quick ratio (0.64) than 72.30% 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.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
Looking at the last year, EPD shows a quite strong growth in Revenue. The Revenue has grown by 9.31% in the last year.
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)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
Based on estimates for the next years, EPD will show a small growth in Earnings Per Share. The EPS will grow by 4.06% on average per year.
Based on estimates for the next years, EPD will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y6.16%
EPS Next 2Y6.19%
EPS Next 3Y5.48%
EPS Next 5Y4.06%
Revenue Next Year7.99%
Revenue Next 2Y8.57%
Revenue Next 3Y9.89%
Revenue Next 5Y2.67%
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
The Price/Earnings ratio is 11.70, which indicates a very decent valuation of EPD.
66.20% of the companies in the same industry are more expensive than EPD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.32, EPD is valued rather cheaply.
A Price/Forward Earnings ratio of 10.30 indicates a reasonable valuation of EPD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 65.73% of the companies listed in the same industry.
EPD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 10.3 |
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.
EPD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.99 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EPD does not grow enough to justify the current Price/Earnings ratio.
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 6.70%, EPD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.56, EPD pays a bit more dividend than its industry peers.
EPD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP78.8%
EPS Next 2Y6.19%
EPS Next 3Y5.48%
31.23
-0.3 (-0.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.76%
Inst Owner Change-0.15%
Ins Owners32.89%
Ins Owner Change7.22%
Market Cap67.63B
Analysts81.74
Price Target37.39 (19.72%)
Short Float %1.73%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
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)-1.24%
PT rev (3m)0.59%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.18%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)5.81%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)4.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 10.3 | ||
| P/S | 1.19 | ||
| P/FCF | 17.99 | ||
| P/OCF | 8.13 | ||
| P/B | 2.34 | ||
| P/tB | 3.5 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)2.67
EY8.55%
EPS(NY)3.03
Fwd EY9.71%
FCF(TTM)1.74
FCFY5.56%
OCF(TTM)3.84
OCFY12.3%
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
WACC7.3%
ROIC/WACC1.24
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 5Y4.06%
Revenue 1Y (TTM)9.31%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%4.45%
Revenue Next Year7.99%
Revenue Next 2Y8.57%
Revenue Next 3Y9.89%
Revenue Next 5Y2.67%
EBIT growth 1Y5.1%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year41.21%
EBIT Next 3Y15.26%
EBIT Next 5Y10.37%
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%