ENTERPRISE PRODUCTS PARTNERS (EPD) Stock Fundamental Analysis
USA - NYSE:EPD - US2937921078
31.42 USD
+0.27 (+0.87%)
31.42 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EPD. EPD was compared to 211 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 has a valuation in line with the averages, but it does not seem to be growing. 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.
Each year in the past 5 years EPD had a positive operating cash flow.
1.2 Ratios
EPD's Return On Assets of 7.50% is fine compared to the rest of the industry. EPD outperforms 76.78% of its industry peers.
EPD's Return On Equity of 19.95% is amongst the best of the industry. EPD outperforms 86.73% of its industry peers.
With a decent Return On Invested Capital value of 8.77%, EPD is doing good in the industry, outperforming 75.36% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EPD is significantly below the industry average of 21.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 19.95% | ||
| ROIC | 8.77% |
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 of 10.61%. This is comparable to the rest of the industry: EPD outperforms 57.35% of its industry peers.
In the last couple of years the Profit Margin of EPD has declined.
With a Operating Margin value of 12.71%, EPD perfoms like the industry average, outperforming 45.50% of the companies in the same industry.
In the last couple of years the Operating Margin of EPD has declined.
EPD has a worse Gross Margin (20.83%) than 65.40% of its industry peers.
In the last couple of years the Gross Margin of EPD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.71% | ||
| PM (TTM) | 10.61% | ||
| GM | 20.83% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for EPD remains at a similar level compared to 1 year ago.
The number of shares outstanding for EPD has been reduced compared to 5 years ago.
The debt/assets ratio for EPD is higher compared to a year ago.
2.2 Solvency
EPD has a debt to FCF ratio of 7.78. This is a slightly negative value and a sign of low solvency as EPD would need 7.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.78, EPD is in line with its industry, outperforming 54.98% of the companies in the same industry.
EPD has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.07, EPD is doing worse than 69.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.11
WACC7.9%
2.3 Liquidity
EPD has a Current Ratio of 0.96. This is a bad value and indicates that EPD is not financially healthy enough and could expect problems in meeting its short term obligations.
EPD has a Current ratio of 0.96. This is comparable to the rest of the industry: EPD outperforms 41.71% of its industry peers.
EPD has a Quick Ratio of 0.96. 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 (0.69) is worse than 68.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.67% 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 decreased by -0.20% in the past 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
The Earnings Per Share is expected to grow by 4.94% on average over the next years.
The Revenue is expected to decrease by -0.83% on average over the next years.
EPS Next Y1.4%
EPS Next 2Y4.09%
EPS Next 3Y4.48%
EPS Next 5Y4.94%
Revenue Next Year-3.73%
Revenue Next 2Y2.35%
Revenue Next 3Y5.7%
Revenue Next 5Y-0.83%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
EPD is valuated reasonably with a Price/Earnings ratio of 11.68.
Based on the Price/Earnings ratio, EPD is valued a bit cheaper than 69.67% of the companies in the same industry.
EPD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 10.78, the valuation of EPD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EPD is valued a bit cheaper than 66.82% of the companies in the same industry.
EPD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
EPD's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPD indicates a somewhat cheap valuation: EPD is cheaper than 60.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.16 | ||
| EV/EBITDA | 10.54 |
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)8.33
PEG (5Y)2.21
EPS Next 2Y4.09%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.88%, EPD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.98, EPD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, EPD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.47%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
79.13% of the earnings are spent on dividend by EPD. This is not a sustainable payout ratio.
EPD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP79.13%
EPS Next 2Y4.09%
EPS Next 3Y4.48%
31.42
+0.27 (+0.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.81%
Inst Owner Change-0.85%
Ins Owners32.9%
Ins Owner Change0.2%
Market Cap68.03B
Analysts80.83
Price Target36.54 (16.3%)
Short Float %2.26%
Short Ratio7.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
Yearly Dividend2.08
Dividend Growth(5Y)3.47%
DP79.13%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.29%
Min EPS beat(2)-9.84%
Max EPS beat(2)1.26%
EPS beat(4)2
Avg EPS beat(4)-1.64%
Min EPS beat(4)-9.84%
Max EPS beat(4)4.83%
EPS beat(8)3
Avg EPS beat(8)-1.72%
EPS beat(12)5
Avg EPS beat(12)-1.13%
EPS beat(16)7
Avg EPS beat(16)-0.96%
Revenue beat(2)1
Avg Revenue beat(2)-5.95%
Min Revenue beat(2)-20.95%
Max Revenue beat(2)9.05%
Revenue beat(4)1
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-20.95%
Max Revenue beat(4)9.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-3.02%
Revenue beat(16)8
Avg Revenue beat(16)3.21%
PT rev (1m)-0.35%
PT rev (3m)-2.29%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-3.47%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-4.05%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-13.51%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-9.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.78 | ||
| P/S | 1.24 | ||
| P/FCF | 16.16 | ||
| P/OCF | 7.73 | ||
| P/B | 2.34 | ||
| P/tB | 3.49 | ||
| EV/EBITDA | 10.54 |
EPS(TTM)2.69
EY8.56%
EPS(NY)2.91
Fwd EY9.28%
FCF(TTM)1.94
FCFY6.19%
OCF(TTM)4.07
OCFY12.94%
SpS25.29
BVpS13.45
TBVpS9.01
PEG (NY)8.33
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 19.95% | ||
| ROCE | 11.1% | ||
| ROIC | 8.77% | ||
| ROICexc | 8.89% | ||
| ROICexgc | 10.53% | ||
| OM | 12.71% | ||
| PM (TTM) | 10.61% | ||
| GM | 20.83% | ||
| FCFM | 7.69% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.78 | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 186.6% | ||
| Cap/Sales | 8.39% | ||
| Interest Coverage | 5.3 | ||
| Cash Conversion | 93.47% | ||
| Profit Quality | 72.5% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | N/A |
F-Score6
WACC7.9%
ROIC/WACC1.11
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 Y1.4%
EPS Next 2Y4.09%
EPS Next 3Y4.48%
EPS Next 5Y4.94%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.27%
Revenue growth 5Y11.39%
Sales Q2Q%-15.72%
Revenue Next Year-3.73%
Revenue Next 2Y2.35%
Revenue Next 3Y5.7%
Revenue Next 5Y-0.83%
EBIT growth 1Y2.29%
EBIT growth 3Y6.67%
EBIT growth 5Y4.37%
EBIT Next Year37.42%
EBIT Next 3Y14.68%
EBIT Next 5Y10.11%
FCF growth 1Y-8.34%
FCF growth 3Y-17.19%
FCF growth 5Y12.42%
OCF growth 1Y21.28%
OCF growth 3Y-1.58%
OCF growth 5Y4.47%