ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
NYSE:ET - New York Stock Exchange, Inc. - US29273V1008 - Currency: USD
Overall ET gets a fundamental rating of 3 out of 10. We evaluated ET against 213 industry peers in the Oil, Gas & Consumable Fuels industry. ET may be in some trouble as it scores bad on both profitability and health. ET is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ET had positive earnings in the past year.
ET had a positive operating cash flow in the past year.
ET had positive earnings in 4 of the past 5 years.
In the past 5 years ET always reported a positive cash flow from operatings.
1.2 Ratios
ET has a Return On Assets of 3.61%. This is comparable to the rest of the industry: ET outperforms 50.70% of its industry peers.
Looking at the Return On Equity, with a value of 12.91%, ET is in the better half of the industry, outperforming 65.26% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.51%, ET is in line with its industry, outperforming 54.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ET is significantly below the industry average of 25.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 12.91% | ||
| ROIC | 6.51% |
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's Profit Margin of 5.56% is in line compared to the rest of the industry. ET outperforms 44.60% of its industry peers.
ET's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.34%, ET is doing worse than 60.09% of the companies in the same industry.
ET's Operating Margin has declined in the last couple of years.
ET's Gross Margin of 25.73% is on the low side compared to the rest of the industry. ET is outperformed by 61.97% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.34% | ||
| PM (TTM) | 5.56% | ||
| GM | 25.73% |
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.
The number of shares outstanding for ET has been increased compared to 5 years ago.
The debt/assets ratio for ET is higher compared to a year ago.
2.2 Solvency
ET has a debt to FCF ratio of 9.87. This is a negative value and a sign of low solvency as ET would need 9.87 years to pay back of all of its debts.
ET has a Debt to FCF ratio (9.87) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.69 is on the high side and indicates that ET has dependencies on debt financing.
The Debt to Equity ratio of ET (1.69) is worse than 78.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 9.87 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC9.6%
2.3 Liquidity
ET has a Current Ratio of 1.12. This is a normal value and indicates that ET is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ET (1.12) is comparable to the rest of the industry.
ET has a Quick Ratio of 1.12. This is a bad value and indicates that ET is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ET (0.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
ET shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.66%.
ET shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.95% yearly.
The Revenue has been growing slightly by 1.04% in the past 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)-8.66%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%12.5%
Revenue 1Y (TTM)1.04%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-2.82%
3.2 Future
Based on estimates for the next years, ET will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.96% on average per year.
The Revenue is expected to grow by 5.41% on average over the next years.
EPS Next Y37.1%
EPS Next 2Y21.64%
EPS Next 3Y16.24%
EPS Next 5Y16.96%
Revenue Next Year6.01%
Revenue Next 2Y5.03%
Revenue Next 3Y5.34%
Revenue Next 5Y5.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 15.43, the valuation of ET can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as ET.
Compared to an average S&P500 Price/Earnings ratio of 25.91, ET is valued a bit cheaper.
With a Price/Forward Earnings ratio of 10.80, the valuation of ET can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ET is valued a bit cheaper than 60.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. ET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ET.
Based on the Price/Free Cash Flow ratio, ET is valued a bit cheaper than the industry average as 74.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 8.28 |
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 16.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y21.64%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 7.29%, which is a nice return.
ET's Dividend Yield is a higher than the industry average which is at 6.72.
ET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.29% |
5.2 History
The dividend of ET is nicely growing with an annual growth rate of 16.95%!
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
ET pays out 101.49% of its income as dividend. 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.
DP101.49%
EPS Next 2Y21.64%
EPS Next 3Y16.24%
NYSE:ET (5/23/2025, 2:41:03 PM)
17.9
+0.02 (+0.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners32.43%
Inst Owner ChangeN/A
Ins Owners9.24%
Ins Owner Change0.82%
Market Cap61.42B
Analysts86.4
Price Target23.26 (29.94%)
Short Float %0.91%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.29% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP101.49%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.81%
Min EPS beat(2)-25.18%
Max EPS beat(2)-2.43%
EPS beat(4)0
Avg EPS beat(4)-21.31%
Min EPS beat(4)-48.79%
Max EPS beat(4)-2.43%
EPS beat(8)1
Avg EPS beat(8)-16.44%
EPS beat(12)2
Avg EPS beat(12)-15.2%
EPS beat(16)4
Avg EPS beat(16)-14.04%
Revenue beat(2)0
Avg Revenue beat(2)-9.53%
Min Revenue beat(2)-13.81%
Max Revenue beat(2)-5.25%
Revenue beat(4)0
Avg Revenue beat(4)-9.29%
Min Revenue beat(4)-13.81%
Max Revenue beat(4)-5.25%
Revenue beat(8)0
Avg Revenue beat(8)-7.29%
Revenue beat(12)1
Avg Revenue beat(12)-6.06%
Revenue beat(16)4
Avg Revenue beat(16)-3.22%
PT rev (1m)-1.25%
PT rev (3m)1.53%
EPS NQ rev (1m)6.16%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)2.18%
EPS NY rev (3m)-5.59%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.75 | ||
| P/FCF | 10.14 | ||
| P/OCF | 5.77 | ||
| P/B | 1.74 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)1.16
EY6.48%
EPS(NY)1.66
Fwd EY9.26%
FCF(TTM)1.77
FCFY9.86%
OCF(TTM)3.1
OCFY17.34%
SpS23.92
BVpS10.29
TBVpS7.44
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 12.91% | ||
| ROCE | 8.25% | ||
| ROIC | 6.51% | ||
| ROICexc | 6.54% | ||
| ROICexgc | 7.16% | ||
| OM | 11.34% | ||
| PM (TTM) | 5.56% | ||
| GM | 25.73% | ||
| FCFM | 7.38% |
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-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 9.87 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 87.02% | ||
| Cap/Sales | 5.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.04% | ||
| Profit Quality | 132.85% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score5
WACC9.6%
ROIC/WACC0.68
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)-8.66%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%12.5%
EPS Next Y37.1%
EPS Next 2Y21.64%
EPS Next 3Y16.24%
EPS Next 5Y16.96%
Revenue 1Y (TTM)1.04%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-2.82%
Revenue Next Year6.01%
Revenue Next 2Y5.03%
Revenue Next 3Y5.34%
Revenue Next 5Y5.41%
EBIT growth 1Y7.9%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year65.53%
EBIT Next 3Y21.65%
EBIT Next 5Y14.58%
FCF growth 1Y-7.5%
FCF growth 3Y-4.16%
FCF growth 5Y28.49%
OCF growth 1Y6.18%
OCF growth 3Y1.02%
OCF growth 5Y7.39%