ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
USA - NYSE:ET - US29273V1008
17.41 USD
+0.01 (+0.06%)
17.38 USD
-0.03 (-0.17%)
Overall ET gets a fundamental rating of 4 out of 10. We evaluated ET against 210 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.
In the past year ET had a positive cash flow from operations.
Of the past 5 years ET 4 years were profitable.
Each year in the past 5 years ET had a positive operating cash flow.
1.2 Ratios
ET has a Return On Assets of 3.57%. This is comparable to the rest of the industry: ET outperforms 52.38% of its industry peers.
ET's Return On Equity of 12.85% is fine compared to the rest of the industry. ET outperforms 68.57% of its industry peers.
ET has a Return On Invested Capital of 6.47%. This is comparable to the rest of the industry: ET outperforms 59.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ET is significantly below the industry average of 21.71%.
| 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's Profit Margin of 5.55% is in line compared to the rest of the industry. ET outperforms 46.19% of its industry peers.
In the last couple of years the Profit Margin of ET has declined.
Looking at the Operating Margin, with a value of 11.50%, ET is in line with its industry, outperforming 41.90% of the companies in the same industry.
ET's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.42%, ET is doing worse than 62.38% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
The debt/assets ratio for ET is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ET is 10.65, which is on the high side as it means it would take ET, 10.65 years of fcf income to pay off all of its debts.
ET has a Debt to FCF ratio (10.65) which is comparable to the rest of the 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 78.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.79
WACC8.16%
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 of 1.15. This is comparable to the rest of the industry: ET outperforms 50.48% of its industry peers.
A Quick Ratio of 0.92 indicates that ET may have some problems paying its short term obligations.
With a Quick ratio value of 0.92, ET perfoms like the industry average, outperforming 49.05% 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.
ET shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.95% yearly.
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.
ET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y31.3%
EPS Next 2Y20.83%
EPS Next 3Y14.77%
EPS Next 5Y16.96%
Revenue Next Year0.28%
Revenue Next 2Y4.38%
Revenue Next 3Y4.19%
Revenue Next 5Y5.42%
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.
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 13.50, ET is valued correctly.
ET's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.06, ET is valued rather cheaply.
ET is valuated reasonably with a Price/Forward Earnings ratio of 10.65.
Based on the Price/Forward Earnings ratio, ET is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.64, ET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
ET's Enterprise Value to EBITDA ratio is in line with the industry average.
76.19% of the companies in the same industry are more expensive than ET, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.48 | ||
| EV/EBITDA | 8.17 |
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.
A more expensive valuation may be justified as ET's earnings are expected to grow with 14.77% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y20.83%
EPS Next 3Y14.77%
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 6.00. ET pays more dividend than 80.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 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 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
ET pays out 103.92% 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.
DP103.92%
EPS Next 2Y20.83%
EPS Next 3Y14.77%
17.41
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners30.55%
Inst Owner ChangeN/A
Ins Owners9.21%
Ins Owner Change1.68%
Market Cap59.76B
Analysts86.92
Price Target22.97 (31.94%)
Short Float %0.86%
Short Ratio2.09
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)-0.66%
PT rev (3m)-1.21%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-4.21%
EPS NY rev (1m)-2.15%
EPS NY rev (3m)-4.23%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)-2.31%
Revenue NY rev (3m)-5.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 10.65 | ||
| P/S | 0.74 | ||
| P/FCF | 10.48 | ||
| P/OCF | 5.36 | ||
| P/B | 1.72 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)1.29
EY7.41%
EPS(NY)1.64
Fwd EY9.39%
FCF(TTM)1.66
FCFY9.54%
OCF(TTM)3.25
OCFY18.65%
SpS23.47
BVpS10.13
TBVpS7.31
PEG (NY)0.43
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
WACC8.16%
ROIC/WACC0.79
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 Y31.3%
EPS Next 2Y20.83%
EPS Next 3Y14.77%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-7.17%
Revenue Next Year0.28%
Revenue Next 2Y4.38%
Revenue Next 3Y4.19%
Revenue Next 5Y5.42%
EBIT growth 1Y1.56%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year63.76%
EBIT Next 3Y21.53%
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%