ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
USA - NYSE:ET - US29273V1008
17.01 USD
+0.38 (+2.29%)
17 USD
-0.01 (-0.06%)
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. ET has a medium profitability rating, but doesn't score so well on its financial health evaluation. ET has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ET was profitable.
ET had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.33%, ET is in line with its industry, outperforming 51.43% of the companies in the same industry.
The Return On Equity of ET (12.44%) is better than 68.57% of its industry peers.
ET has a Return On Invested Capital (6.24%) 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 21.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 12.44% | ||
| ROIC | 6.24% |
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 (5.41%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ET has declined.
ET has a Operating Margin (11.59%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ET has declined.
With a Gross Margin value of 26.98%, ET is not doing good in the industry: 61.90% 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 | 11.59% | ||
| PM (TTM) | 5.41% | ||
| GM | 26.98% |
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.
The number of shares outstanding for ET has been increased compared to 5 years ago.
Compared to 1 year ago, ET has a worse debt to assets ratio.
2.2 Solvency
ET has a debt to FCF ratio of 12.16. This is a negative value and a sign of low solvency as ET would need 12.16 years to pay back of all of its debts.
The Debt to FCF ratio of ET (12.16) is comparable to the rest of the industry.
ET has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.82, ET is doing worse than 78.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 12.16 | ||
| Altman-Z | N/A |
ROIC/WACC0.81
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ET should not have too much problems paying its short term obligations.
ET has a Current ratio of 1.41. This is in the better half of the industry: ET outperforms 63.33% of its industry peers.
ET has a Quick Ratio of 1.14. This is a normal value and indicates that ET is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ET (1.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ET shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.17%.
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 -4.67% 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)4.17%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-70.96%
3.2 Future
The Earnings Per Share is expected to grow by 15.14% 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 4.05% yearly.
EPS Next Y29.03%
EPS Next 2Y19.03%
EPS Next 3Y14.34%
EPS Next 5Y15.14%
Revenue Next Year-0.69%
Revenue Next 2Y4.33%
Revenue Next 3Y4.18%
Revenue Next 5Y4.05%
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
A Price/Earnings ratio of 13.61 indicates a correct valuation of ET.
ET's Price/Earnings is on the same level as the industry average.
ET's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 10.72, the valuation of ET can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ET is valued a bit cheaper than the industry average as 72.86% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ET to the average of the S&P500 Index (34.59), we can say ET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
ET's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ET indicates a somewhat cheap valuation: ET is cheaper than 74.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.25 | ||
| EV/EBITDA | 7.96 |
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 14.34% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y19.03%
EPS Next 3Y14.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.26%, ET is a good candidate for dividend investing.
ET's Dividend Yield is a higher than the industry average which is at 5.87.
Compared to an average S&P500 Dividend Yield of 2.44, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
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
108.83% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
The dividend of ET is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP108.83%
EPS Next 2Y19.03%
EPS Next 3Y14.34%
17.01
+0.38 (+2.29%)
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 Cap58.39B
Revenue(TTM)79.76B
Net Income(TTM)4.31B
Analysts85.71
Price Target22.54 (32.51%)
Short Float %0.98%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP108.83%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.08%
Min EPS beat(2)-19.81%
Max EPS beat(2)-8.35%
EPS beat(4)0
Avg EPS beat(4)-13.94%
Min EPS beat(4)-25.18%
Max EPS beat(4)-2.43%
EPS beat(8)1
Avg EPS beat(8)-16.11%
EPS beat(12)1
Avg EPS beat(12)-15.87%
EPS beat(16)4
Avg EPS beat(16)-12.31%
Revenue beat(2)0
Avg Revenue beat(2)-43.83%
Min Revenue beat(2)-72.7%
Max Revenue beat(2)-14.95%
Revenue beat(4)0
Avg Revenue beat(4)-26.68%
Min Revenue beat(4)-72.7%
Max Revenue beat(4)-5.25%
Revenue beat(8)0
Avg Revenue beat(8)-16.52%
Revenue beat(12)0
Avg Revenue beat(12)-14.71%
Revenue beat(16)3
Avg Revenue beat(16)-9.07%
PT rev (1m)-1.6%
PT rev (3m)-2.5%
EPS NQ rev (1m)-1.6%
EPS NQ rev (3m)-7.2%
EPS NY rev (1m)-1.73%
EPS NY rev (3m)-5.13%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-5.3%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-5.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 10.72 | ||
| P/S | 0.73 | ||
| P/FCF | 11.25 | ||
| P/OCF | 5.39 | ||
| P/B | 1.68 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 7.96 |
EPS(TTM)1.25
EY7.35%
EPS(NY)1.59
Fwd EY9.33%
FCF(TTM)1.51
FCFY8.89%
OCF(TTM)3.16
OCFY18.57%
SpS23.23
BVpS10.1
TBVpS7.32
PEG (NY)0.47
PEG (5Y)N/A
Graham Number16.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 12.44% | ||
| ROCE | 7.9% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 7.03% | ||
| OM | 11.59% | ||
| PM (TTM) | 5.41% | ||
| GM | 26.98% | ||
| FCFM | 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%
ROICexc(3y)6.54%
ROICexc(5y)6.44%
ROICexgc(3y)7.2%
ROICexgc(5y)7.08%
ROCE(3y)8.26%
ROCE(5y)8.12%
ROICexgc growth 3Y-4.22%
ROICexgc 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 12.16 | ||
| Debt/EBITDA | 4.26 | ||
| Cap/Depr | 101.56% | ||
| Cap/Sales | 7.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.23% | ||
| Profit Quality | 120.31% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | N/A |
F-Score5
WACC7.7%
ROIC/WACC0.81
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)4.17%
EPS 3Y-16.15%
EPS 5Y-3.95%
EPS Q2Q%-12.5%
EPS Next Y29.03%
EPS Next 2Y19.03%
EPS Next 3Y14.34%
EPS Next 5Y15.14%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-70.96%
Revenue Next Year-0.69%
Revenue Next 2Y4.33%
Revenue Next 3Y4.18%
Revenue Next 5Y4.05%
EBIT growth 1Y1.83%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year63.76%
EBIT Next 3Y21.53%
EBIT Next 5Y14.02%
FCF growth 1Y-17.36%
FCF growth 3Y-4.16%
FCF growth 5Y28.49%
OCF growth 1Y12.96%
OCF growth 3Y1.02%
OCF growth 5Y7.39%
ENERGY TRANSFER LP / ET FAQ
What is the ChartMill fundamental rating of ENERGY TRANSFER LP (ET) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ET.
What is the valuation status of ENERGY TRANSFER LP (ET) stock?
ChartMill assigns a valuation rating of 6 / 10 to ENERGY TRANSFER LP (ET). This can be considered as Fairly Valued.
How profitable is ENERGY TRANSFER LP (ET) stock?
ENERGY TRANSFER LP (ET) has a profitability rating of 4 / 10.
What is the financial health of ENERGY TRANSFER LP (ET) stock?
The financial health rating of ENERGY TRANSFER LP (ET) is 2 / 10.
How sustainable is the dividend of ENERGY TRANSFER LP (ET) stock?
The dividend rating of ENERGY TRANSFER LP (ET) is 6 / 10 and the dividend payout ratio is 108.83%.