ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
NYSE:ET - New York Stock Exchange, Inc. - US29273V1008 - Currency: USD
Taking everything into account, ET scores 3 out of 10 in our fundamental rating. ET was compared to 212 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 has a correct valuation and a medium 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
Looking at the Return On Assets, with a value of 3.50%, ET is in line with its industry, outperforming 47.64% of the companies in the same industry.
ET has a better Return On Equity (12.51%) than 62.26% of its industry peers.
ET has a Return On Invested Capital (6.44%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ET is significantly below the industry average of 25.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 12.51% | ||
| ROIC | 6.44% |
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 of 5.32%. This is comparable to the rest of the industry: ET outperforms 41.51% of its industry peers.
ET's Profit Margin has declined in the last couple of years.
ET has a worse Operating Margin (11.12%) than 62.26% of its industry peers.
ET's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 25.03%, ET is not doing good in the industry: 64.62% 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 | 11.12% | ||
| PM (TTM) | 5.32% | ||
| GM | 25.03% |
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.
Compared to 1 year ago, ET has more shares outstanding
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 8.14. This is a slightly negative value and a sign of low solvency as ET would need 8.14 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.14, ET perfoms like the industry average, outperforming 53.77% of the companies in the same industry.
A Debt/Equity ratio of 1.70 is on the high side and indicates that ET has dependencies on debt financing.
With a Debt to Equity ratio value of 1.70, ET is not doing good in the industry: 78.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC9.54%
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.
ET has a Current ratio (1.12) which is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that ET may have some problems paying its short term obligations.
ET's Quick ratio of 0.88 is in line compared to the rest of the industry. ET outperforms 41.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for ET have decreased strongly by -11.81% in the last year.
Measured over the past years, ET shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.95% on average per year.
The Revenue has been growing slightly by 5.20% in the past year.
Measured over the past years, ET shows a quite strong growth in Revenue. The Revenue has been growing by 8.81% on average per year.
EPS 1Y (TTM)-11.81%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%-21.62%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-4.83%
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.
Based on estimates for the next years, ET will show a small growth in Revenue. The Revenue will grow by 5.41% on average per year.
EPS Next Y34.18%
EPS Next 2Y19.57%
EPS Next 3Y14.07%
EPS Next 5Y16.96%
Revenue Next Year7.48%
Revenue Next 2Y5.37%
Revenue Next 3Y6.05%
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.
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 14.76, ET is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ET is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.85, ET is valued a bit cheaper.
A Price/Forward Earnings ratio of 11.00 indicates a reasonable valuation of ET.
The rest of the industry has a similar Price/Forward Earnings ratio as ET.
ET is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 11 |
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 the industry average as 77.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.73 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The 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 14.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y19.57%
EPS Next 3Y14.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.45%, ET is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.31, ET pays a bit more dividend than its industry peers.
ET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.45% |
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
105.21% 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.
DP105.21%
EPS Next 2Y19.57%
EPS Next 3Y14.07%
16.53
-0.01 (-0.06%)
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 Cap56.72B
Analysts86.4
Price Target23.69 (43.32%)
Short Float %0.91%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.45% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP105.21%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.01%
Min EPS beat(2)-25.18%
Max EPS beat(2)-8.83%
EPS beat(4)0
Avg EPS beat(4)-25.4%
Min EPS beat(4)-48.79%
Max EPS beat(4)-8.83%
EPS beat(8)1
Avg EPS beat(8)-18.23%
EPS beat(12)3
Avg EPS beat(12)-13.89%
EPS beat(16)5
Avg EPS beat(16)3.57%
Revenue beat(2)0
Avg Revenue beat(2)-11.68%
Min Revenue beat(2)-13.81%
Max Revenue beat(2)-9.55%
Revenue beat(4)0
Avg Revenue beat(4)-8.03%
Min Revenue beat(4)-13.81%
Max Revenue beat(4)-0.21%
Revenue beat(8)0
Avg Revenue beat(8)-8.4%
Revenue beat(12)2
Avg Revenue beat(12)-5.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.08%
PT rev (1m)2.05%
PT rev (3m)8.85%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-8.02%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-6.8%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 11 | ||
| P/S | 0.69 | ||
| P/FCF | 7.73 | ||
| P/OCF | 4.93 | ||
| P/B | 1.62 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)1.12
EY6.78%
EPS(NY)1.5
Fwd EY9.09%
FCF(TTM)2.14
FCFY12.94%
OCF(TTM)3.35
OCFY20.29%
SpS24.09
BVpS10.23
TBVpS7.36
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 12.51% | ||
| ROCE | 8.15% | ||
| ROIC | 6.44% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 7.08% | ||
| OM | 11.12% | ||
| PM (TTM) | 5.32% | ||
| GM | 25.03% | ||
| FCFM | 8.88% |
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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 8.14 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 80.62% | ||
| Cap/Sales | 5.04% | ||
| Interest Coverage | 3.19 | ||
| Cash Conversion | 80.15% | ||
| Profit Quality | 167.09% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score7
WACC9.54%
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)-11.81%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%-21.62%
EPS Next Y34.18%
EPS Next 2Y19.57%
EPS Next 3Y14.07%
EPS Next 5Y16.96%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-4.83%
Revenue Next Year7.48%
Revenue Next 2Y5.37%
Revenue Next 3Y6.05%
Revenue Next 5Y5.41%
EBIT growth 1Y10.63%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year65.53%
EBIT Next 3Y21.65%
EBIT Next 5Y14.58%
FCF growth 1Y14.34%
FCF growth 3Y-4.16%
FCF growth 5Y28.49%
OCF growth 1Y20.42%
OCF growth 3Y1.02%
OCF growth 5Y7.39%