ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
NYSE:ET - US29273V1008
17.65 USD
+0.08 (+0.46%)
17.6302 USD
-0.02 (-0.11%)
Overall ET gets a fundamental rating of 4 out of 10. We evaluated ET against 209 industry peers in the Oil, Gas & Consumable Fuels industry. While ET is still in line with the averages on profitability rating, there are concerns on its financial health. ET has a decent growth rate and is not valued too expensively. ET also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ET was profitable.
ET had a positive operating cash flow in the past year.
ET had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ET had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.57%, ET perfoms like the industry average, outperforming 52.15% of the companies in the same industry.
ET's Return On Equity of 12.85% is fine compared to the rest of the industry. ET outperforms 68.42% of its industry peers.
ET has a Return On Invested Capital (6.47%) which is in line with its industry peers.
ET had an Average Return On Invested Capital over the past 3 years of 6.53%. This is significantly below the industry average of 21.91%.
| 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 in line with its industry peers.
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 41.15% of the companies in the same industry.
In the last couple of years the Operating Margin of ET has declined.
ET has a worse Gross Margin (26.42%) than 62.68% of its industry peers.
In the last couple of years the Gross Margin of ET has remained more or less at the same level.
| 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
ET has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
The debt/assets ratio for ET is higher compared to a year ago.
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.
With a Debt to FCF ratio value of 10.65, ET perfoms like the industry average, outperforming 53.11% of the companies in the same industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that ET has dependencies on debt financing.
ET has a Debt to Equity ratio of 1.75. This is in the lower half of the industry: ET underperforms 77.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.77
WACC8.43%
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's Current ratio of 1.15 is in line compared to the rest of the industry. ET outperforms 50.24% of its industry peers.
A Quick Ratio of 0.92 indicates that ET may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, ET is in line with its industry, outperforming 48.33% 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.
ET shows a decrease in Revenue. In the last year, the revenue decreased by -3.65%.
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.
Based on estimates for the next years, ET will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y34.19%
EPS Next 2Y22.39%
EPS Next 3Y16.23%
EPS Next 5Y16.96%
Revenue Next Year2.65%
Revenue Next 2Y5.14%
Revenue Next 3Y4.93%
Revenue Next 5Y5.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 13.68, ET is valued correctly.
ET's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ET to the average of the S&P500 Index (27.03), we can say ET is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 10.52, the valuation of ET can be described as reasonable.
Based on the Price/Forward Earnings ratio, ET is valued a bit cheaper than the industry average as 67.46% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.63. ET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ET is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ET indicates a somewhat cheap valuation: ET is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.63 | ||
| EV/EBITDA | 8.21 |
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 16.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y22.39%
EPS Next 3Y16.23%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 7.34%, which is a nice return.
ET's Dividend Yield is rather good when compared to the industry average which is at 6.06. ET pays more dividend than 81.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.34% |
5.2 History
On average, the dividend of ET grows each year by 16.95%, which is quite nice.
ET has paid a dividend for at least 10 years, which is 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.
The dividend of ET is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP103.92%
EPS Next 2Y22.39%
EPS Next 3Y16.23%
17.65
+0.08 (+0.46%)
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 Change1.68%
Market Cap60.59B
Analysts86.15
Price Target23.19 (31.39%)
Short Float %0.87%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.34% |
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)-0.24%
PT rev (3m)-0.31%
EPS NQ rev (1m)-1.79%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)-4.27%
Revenue NQ rev (3m)-5.88%
Revenue NY rev (1m)-2.78%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 10.52 | ||
| P/S | 0.75 | ||
| P/FCF | 10.63 | ||
| P/OCF | 5.44 | ||
| P/B | 1.74 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)1.29
EY7.31%
EPS(NY)1.68
Fwd EY9.5%
FCF(TTM)1.66
FCFY9.41%
OCF(TTM)3.25
OCFY18.39%
SpS23.47
BVpS10.13
TBVpS7.31
PEG (NY)0.4
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
WACC8.43%
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 Y34.19%
EPS Next 2Y22.39%
EPS Next 3Y16.23%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-7.17%
Revenue Next Year2.65%
Revenue Next 2Y5.14%
Revenue Next 3Y4.93%
Revenue Next 5Y5.42%
EBIT growth 1Y1.56%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year65.12%
EBIT Next 3Y21.78%
EBIT Next 5Y14.35%
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%