ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
NYSE:ET - New York Stock Exchange, Inc. - US29273V1008 - Currency: USD
Taking everything into account, ET scores 4 out of 10 in our fundamental rating. ET was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. ET has a medium profitability rating, but doesn't score so well on its financial health evaluation. ET has a decent growth rate and is not valued too expensively. Finally ET also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ET was profitable.
In the past year ET had a positive cash flow from operations.
Of the past 5 years ET 4 years were profitable.
In the past 5 years ET always reported a positive cash flow from operatings.
1.2 Ratios
ET has a Return On Assets (3.57%) which is comparable to the rest of the industry.
ET's Return On Equity of 12.85% is fine compared to the rest of the industry. ET outperforms 67.31% of its industry peers.
With a Return On Invested Capital value of 6.47%, ET perfoms like the industry average, outperforming 58.65% of the companies in the same industry.
ET had an Average Return On Invested Capital over the past 3 years of 6.53%. This is significantly below the industry average of 23.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.85% | ||
| ROIC | 6.47% |
ROA(3y)3.55%
ROA(5y)2.97%
ROE(3y)11.69%
ROE(5y)9.63%
ROIC(3y)6.53%
ROIC(5y)6.42%
1.3 Margins
ET has a Profit Margin (5.55%) which is comparable to the rest of the industry.
ET's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.50%, ET is in line with its industry, outperforming 41.35% of the companies in the same industry.
ET's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 26.42%, ET is not doing good in the industry: 62.02% of the companies in the same industry are doing better.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.5% | ||
| PM (TTM) | 5.55% | ||
| GM | 26.42% |
OM growth 3Y-5.26%
OM growth 5Y-3.7%
PM growth 3Y-11.55%
PM growth 5Y-3.89%
GM growth 3Y-0.3%
GM growth 5Y-1.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ET is destroying value.
The number of shares outstanding for ET has been increased compared to 1 year ago.
Compared to 5 years ago, ET has more shares outstanding
ET has a worse debt/assets ratio than last year.
2.2 Solvency
ET has a debt to FCF ratio of 10.65. This is a negative value and a sign of low solvency as ET would need 10.65 years to pay back of all of its debts.
ET has a Debt to FCF ratio of 10.65. This is comparable to the rest of the industry: ET outperforms 50.96% of its industry peers.
A Debt/Equity ratio of 1.75 is on the high side and indicates that ET has dependencies on debt financing.
The Debt to Equity ratio of ET (1.75) is worse than 77.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.77
WACC8.44%
2.3 Liquidity
ET has a Current Ratio of 1.15. This is a normal value and indicates that ET is financially healthy and should not expect problems in meeting its short term obligations.
ET has a Current ratio (1.15) which is in line with its industry peers.
ET has a Quick Ratio of 1.15. This is a bad value and indicates that ET is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.92, ET perfoms like the industry average, outperforming 47.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.61% over the past year.
The Earnings Per Share has been decreasing by -3.95% on average over the past years.
Looking at the last year, ET shows a decrease in Revenue. The Revenue has decreased by -3.65% in the last year.
ET shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.81% yearly.
EPS 1Y (TTM)6.61%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%68.42%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-7.17%
3.2 Future
The Earnings Per Share is expected to grow by 16.96% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.41% on average over the next years.
EPS Next Y36%
EPS Next 2Y21.67%
EPS Next 3Y16.28%
EPS Next 5Y16.96%
Revenue Next Year5.59%
Revenue Next 2Y5.84%
Revenue Next 3Y5.73%
Revenue Next 5Y5.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 13.48, ET is valued correctly.
ET's Price/Earnings ratio is in line with the industry average.
ET is valuated cheaply when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.49, the valuation of ET can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ET is valued a bit cheaper than 63.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.78. ET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
ET's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ET is valued a bit cheaper than 74.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.46 | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
ET's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ET's earnings are expected to grow with 16.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y21.67%
EPS Next 3Y16.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.59%, ET is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.33, ET pays a better dividend. On top of this ET pays more dividend than 80.29% of the companies listed in the same industry.
ET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.59% |
5.2 History
The dividend of ET is nicely growing with an annual growth rate of 16.95%!
ET has been paying a dividend for at least 10 years, so it has a reliable track record.
ET has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.95%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
103.92% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
ET's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP103.92%
EPS Next 2Y21.67%
EPS Next 3Y16.28%
NYSE:ET (8/14/2025, 2:52:09 PM)
17.3859
-0.1 (-0.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.25%
Inst Owner ChangeN/A
Ins Owners9.16%
Ins Owner Change0%
Market Cap59.66B
Analysts86.15
Price Target23.12 (32.98%)
Short Float %0.81%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.59% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP103.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.39%
Min EPS beat(2)-8.35%
Max EPS beat(2)-2.43%
EPS beat(4)0
Avg EPS beat(4)-11.2%
Min EPS beat(4)-25.18%
Max EPS beat(4)-2.43%
EPS beat(8)1
Avg EPS beat(8)-14.19%
EPS beat(12)1
Avg EPS beat(12)-16.3%
EPS beat(16)4
Avg EPS beat(16)-12.98%
Revenue beat(2)0
Avg Revenue beat(2)-10.1%
Min Revenue beat(2)-14.95%
Max Revenue beat(2)-5.25%
Revenue beat(4)0
Avg Revenue beat(4)-10.89%
Min Revenue beat(4)-14.95%
Max Revenue beat(4)-5.25%
Revenue beat(8)0
Avg Revenue beat(8)-7.55%
Revenue beat(12)0
Avg Revenue beat(12)-9.26%
Revenue beat(16)4
Avg Revenue beat(16)-4.04%
PT rev (1m)-0.56%
PT rev (3m)-0.62%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)0%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 10.49 | ||
| P/S | 0.74 | ||
| P/FCF | 10.46 | ||
| P/OCF | 5.35 | ||
| P/B | 1.72 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)1.29
EY7.42%
EPS(NY)1.66
Fwd EY9.54%
FCF(TTM)1.66
FCFY9.56%
OCF(TTM)3.25
OCFY18.68%
SpS23.48
BVpS10.13
TBVpS7.31
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.85% | ||
| ROCE | 8.19% | ||
| ROIC | 6.47% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 7.09% | ||
| OM | 11.5% | ||
| PM (TTM) | 5.55% | ||
| GM | 26.42% | ||
| FCFM | 7.08% |
ROA(3y)3.55%
ROA(5y)2.97%
ROE(3y)11.69%
ROE(5y)9.63%
ROIC(3y)6.53%
ROIC(5y)6.42%
ROICexc(3y)6.54%
ROICexc(5y)6.44%
ROICexgc(3y)7.2%
ROICexgc(5y)7.08%
ROCE(3y)8.26%
ROCE(5y)8.12%
ROICexcg growth 3Y-4.22%
ROICexcg growth 5Y-0.39%
ROICexc growth 3Y-4.2%
ROICexc growth 5Y0.43%
OM growth 3Y-5.26%
OM growth 5Y-3.7%
PM growth 3Y-11.55%
PM growth 5Y-3.89%
GM growth 3Y-0.3%
GM growth 5Y-1.23%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.66 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 99.85% | ||
| Cap/Sales | 6.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.71% | ||
| Profit Quality | 127.59% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score7
WACC8.44%
ROIC/WACC0.77
Cap/Depr(3y)77.76%
Cap/Depr(5y)89.34%
Cap/Sales(3y)4.26%
Cap/Sales(5y)6.03%
Profit Quality(3y)161.04%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.61%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%68.42%
EPS Next Y36%
EPS Next 2Y21.67%
EPS Next 3Y16.28%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-7.17%
Revenue Next Year5.59%
Revenue Next 2Y5.84%
Revenue Next 3Y5.73%
Revenue Next 5Y5.41%
EBIT growth 1Y1.56%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year65.12%
EBIT Next 3Y21.78%
EBIT Next 5Y14.37%
FCF growth 1Y-13.09%
FCF growth 3Y-4.16%
FCF growth 5Y28.49%
OCF growth 1Y9.11%
OCF growth 3Y1.02%
OCF growth 5Y7.39%