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 212 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 is not valued too expensively and it also shows a decent growth rate. Finally EPD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EPD was profitable.
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
With a decent Return On Assets value of 7.57%, EPD is doing good in the industry, outperforming 73.58% of the companies in the same industry.
The Return On Equity of EPD (20.29%) is better than 79.72% of its industry peers.
EPD has a better Return On Invested Capital (8.91%) than 68.40% 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 27.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.29% | ||
| ROIC | 8.91% |
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 (10.39%) which is in line with its industry peers.
EPD's Profit Margin has declined in the last couple of years.
The Operating Margin of EPD (12.43%) is comparable to the rest of the industry.
EPD's Operating Margin has declined in the last couple of years.
The Gross Margin of EPD (19.99%) is worse than 67.45% of its industry peers.
In the last couple of years the Gross Margin of EPD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.43% | ||
| PM (TTM) | 10.39% | ||
| GM | 19.99% |
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
EPD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
The Debt to FCF ratio of EPD is 8.93, which is on the high side as it means it would take EPD, 8.93 years of fcf income to pay off all of its debts.
EPD has a Debt to FCF ratio of 8.93. This is comparable to the rest of the industry: EPD outperforms 52.36% of its industry peers.
EPD has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.07, EPD is not doing good in the industry: 71.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 8.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.92
WACC9.67%
2.3 Liquidity
A Current Ratio of 1.00 indicates that EPD may have some problems paying its short term obligations.
EPD has a Current ratio of 1.00. This is comparable to the rest of the industry: EPD outperforms 42.92% of its industry peers.
A Quick Ratio of 0.74 indicates that EPD may have some problems paying its short term obligations.
EPD's Quick ratio of 0.74 is on the low side compared to the rest of the industry. EPD is outperformed by 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.75% 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.
The Revenue has grown by 13.08% in the past year. This is quite good.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
EPS 1Y (TTM)6.75%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%2.78%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-2.88%
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 3.02% on average per year.
Based on estimates for the next years, EPD will show a small growth in Revenue. The Revenue will grow by 2.02% on average per year.
EPS Next Y8.7%
EPS Next 2Y7.44%
EPS Next 3Y6.42%
EPS Next 5Y3.02%
Revenue Next Year2.98%
Revenue Next 2Y5.67%
Revenue Next 3Y8.59%
Revenue Next 5Y2.02%
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
A Price/Earnings ratio of 11.61 indicates a reasonable valuation of EPD.
62.26% 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 28.79. EPD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.68, the valuation of EPD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EPD is valued a bit cheaper than the industry average as 62.26% of the companies are valued more expensively.
EPD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EPD.
EPD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.93 | ||
| EV/EBITDA | 10.52 |
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)1.33
PEG (5Y)2.2
EPS Next 2Y7.44%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
EPD has a Yearly Dividend Yield of 6.84%, which is a nice return.
Compared to an average industry Dividend Yield of 7.35, EPD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.47, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
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
77.25% of the earnings are spent on dividend by EPD. This is not a sustainable payout ratio.
The dividend of EPD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP77.25%
EPS Next 2Y7.44%
EPS Next 3Y6.42%
31.22
-0.08 (-0.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.71%
Inst Owner Change-44.51%
Ins Owners32.8%
Ins Owner Change7.05%
Market Cap67.61B
Analysts81.67
Price Target37.99 (21.68%)
Short Float %1.64%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP77.25%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1%
Min EPS beat(2)-2.82%
Max EPS beat(2)4.83%
EPS beat(4)1
Avg EPS beat(4)-1.02%
Min EPS beat(4)-3.83%
Max EPS beat(4)4.83%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)6
Avg EPS beat(12)0.56%
EPS beat(16)7
Avg EPS beat(16)1.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-0.71%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)2.9%
Revenue beat(8)2
Avg Revenue beat(8)-2.67%
Revenue beat(12)5
Avg Revenue beat(12)2.27%
Revenue beat(16)9
Avg Revenue beat(16)7.16%
PT rev (1m)2.19%
PT rev (3m)5.68%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 10.68 | ||
| P/S | 1.2 | ||
| P/FCF | 18.93 | ||
| P/OCF | 8.33 | ||
| P/B | 2.35 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 10.52 |
EPS(TTM)2.69
EY8.62%
EPS(NY)2.92
Fwd EY9.37%
FCF(TTM)1.65
FCFY5.28%
OCF(TTM)3.75
OCFY12%
SpS25.96
BVpS13.29
TBVpS8.8
PEG (NY)1.33
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.29% | ||
| ROCE | 11.27% | ||
| ROIC | 8.91% | ||
| ROICexc | 8.99% | ||
| ROICexgc | 10.68% | ||
| OM | 12.43% | ||
| PM (TTM) | 10.39% | ||
| GM | 19.99% | ||
| FCFM | 6.35% |
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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 8.93 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 188.24% | ||
| Cap/Sales | 8.08% | ||
| Interest Coverage | 5.57 | ||
| Cash Conversion | 86.3% | ||
| Profit Quality | 61.14% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-Score6
WACC9.67%
ROIC/WACC0.92
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)6.75%
EPS 3Y8.6%
EPS 5Y5.28%
EPS Q2Q%2.78%
EPS Next Y8.7%
EPS Next 2Y7.44%
EPS Next 3Y6.42%
EPS Next 5Y3.02%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-2.88%
Revenue Next Year2.98%
Revenue Next 2Y5.67%
Revenue Next 3Y8.59%
Revenue Next 5Y2.02%
EBIT growth 1Y7.71%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year43.1%
EBIT Next 3Y15.79%
EBIT Next 5Y10.97%
FCF growth 1Y-17.01%
FCF growth 3Y-17.19%
FCF growth 5Y12.42%
OCF growth 1Y7.21%
OCF growth 3Y-1.58%
OCF growth 5Y4.47%