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 208 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 valuation in line with the averages, but on the other hand it scores bad on growth. 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.
Each year in the past 5 years EPD has been profitable.
Each year in the past 5 years EPD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.66%, EPD is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
EPD has a Return On Equity of 19.95%. This is amongst the best in the industry. EPD outperforms 84.62% 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 73.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPD is significantly below the industry average of 23.52%.
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
Looking at the Profit Margin, with a value of 10.16%, EPD is in line with its industry, outperforming 55.29% of the companies in the same industry.
In the last couple of years the Profit Margin of EPD has declined.
EPD has a Operating Margin of 12.17%. This is comparable to the rest of the industry: EPD outperforms 44.23% 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: 66.83% 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.
Compared to 5 years ago, EPD has less shares outstanding
EPD has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of EPD is 8.40, which is on the high side as it means it would take EPD, 8.40 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.40, EPD perfoms like the industry average, outperforming 54.33% of the companies in the same industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that EPD has dependencies on debt financing.
With a Debt to Equity ratio value of 1.01, EPD is not doing good in the industry: 68.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | N/A |
ROIC/WACC1.09
WACC8.3%
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 65.87% 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.
Looking at the Quick ratio, with a value of 0.64, EPD is doing worse than 72.60% of the companies in the same industry.
| 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 2.67% 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 decrease in Revenue. The Revenue has decreased by -0.20% 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)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
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.
The Revenue is expected to grow by 2.67% on average over the next years.
EPS Next Y4.25%
EPS Next 2Y5.32%
EPS Next 3Y5.16%
EPS Next 5Y4.06%
Revenue Next Year3.2%
Revenue Next 2Y3.91%
Revenue Next 3Y7.92%
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.
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 11.71 indicates a reasonable valuation of EPD.
EPD's Price/Earnings ratio is a bit cheaper when compared to the industry. EPD is cheaper than 65.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. EPD is valued rather cheaply when compared to this.
EPD is valuated reasonably with a Price/Forward Earnings ratio of 10.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 62.98% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EPD to the average of the S&P500 Index (35.34), we can say EPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
EPD's Enterprise Value to EBITDA is on the same level as the industry average.
EPD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 10.74 |
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)2.76
PEG (5Y)2.22
EPS Next 2Y5.32%
EPS Next 3Y5.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.99%, EPD is a good candidate for dividend investing.
EPD's Dividend Yield is a higher than the industry average which is at 6.28.
EPD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.99% |
5.2 History
The dividend of EPD has a limited annual growth rate of 3.47%.
EPD has been paying a dividend for at least 10 years, so it has 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.
The dividend of EPD is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP78.8%
EPS Next 2Y5.32%
EPS Next 3Y5.16%
31.5
-0.42 (-1.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.79%
Inst Owner Change-0.3%
Ins Owners32.89%
Ins Owner Change7.3%
Market Cap68.22B
Analysts80.83
Price Target36.66 (16.38%)
Short Float %1.67%
Short Ratio6.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.99% |
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)-1.95%
PT rev (3m)-3.16%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-5.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.1%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-2.24%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 10.56 | ||
| P/S | 1.2 | ||
| P/FCF | 18.15 | ||
| P/OCF | 8.2 | ||
| P/B | 2.36 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 10.74 |
EPS(TTM)2.69
EY8.54%
EPS(NY)2.98
Fwd EY9.47%
FCF(TTM)1.74
FCFY5.51%
OCF(TTM)3.84
OCFY12.19%
SpS26.26
BVpS13.37
TBVpS8.91
PEG (NY)2.76
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
WACC8.3%
ROIC/WACC1.09
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 Y4.25%
EPS Next 2Y5.32%
EPS Next 3Y5.16%
EPS Next 5Y4.06%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-15.72%
Revenue Next Year3.2%
Revenue Next 2Y3.91%
Revenue Next 3Y7.92%
Revenue Next 5Y2.67%
EBIT growth 1Y5.1%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year38.67%
EBIT Next 3Y14.88%
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%