ENERGY TRANSFER LP (ET)
US29273V1008
ET gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. ET has a bad profitability rating. Also its financial health evaluation is rather negative. ET has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ET had positive earnings in the past year.
In the past year ET had a positive cash flow from operations.
Of the past 5 years ET 4 years were profitable.
ET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ET has a worse Return On Assets (3.05%) than 70.89% of its industry peers.
ET has a Return On Equity of 9.46%. This is in the lower half of the industry: ET underperforms 64.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.41%, ET is doing worse than 62.91% 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 45.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 9.46% | ||
| ROIC | 6.41% |
ROA(3y)4.01%
ROA(5y)2.98%
ROE(3y)13.04%
ROE(5y)10.33%
ROIC(3y)6.82%
ROIC(5y)6.39%
1.3 Margins
The Profit Margin of ET (4.41%) is worse than 71.83% of its industry peers.
ET's Profit Margin has improved in the last couple of years.
ET has a Operating Margin of 10.57%. This is in the lower half of the industry: ET underperforms 70.89% of its industry peers.
ET's Operating Margin has been stable in the last couple of years.
ET has a Gross Margin of 22.96%. This is in the lower half of the industry: ET underperforms 67.14% 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 | 10.57% | ||
| PM (TTM) | 4.41% | ||
| GM | 22.96% |
OM growth 3Y-11.1%
OM growth 5Y-0.4%
PM growth 3YN/A
PM growth 5Y6.87%
GM growth 3Y-12.78%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ET is still creating some value.
Compared to 1 year ago, ET has more shares outstanding
ET has more shares outstanding than it did 5 years ago.
ET has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of ET is 8.16, which is on the high side as it means it would take ET, 8.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.16, ET is in line with its industry, outperforming 44.60% of the companies in the same industry.
ET has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
ET has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: ET underperforms 77.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC6.61%
2.3 Liquidity
A Current Ratio of 1.10 indicates that ET should not have too much problems paying its short term obligations.
ET has a Current ratio (1.10) which is comparable to the rest of the industry.
ET has a Quick Ratio of 1.10. This is a bad value and indicates that ET is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.88, ET is in line with its industry, outperforming 41.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
ET shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.63%.
The Earnings Per Share has been decreasing by -0.31% on average over the past years.
ET shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.56%.
The Revenue has been growing slightly by 7.76% on average over the past years.
EPS 1Y (TTM)-8.63%
EPS 3YN/A
EPS 5Y-0.31%
EPS growth Q2Q8.82%
Revenue 1Y (TTM)-12.56%
Revenue growth 3Y26.36%
Revenue growth 5Y7.76%
Revenue growth Q2Q0.15%
3.2 Future
The Earnings Per Share is expected to grow by 15.44% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y26.09%
EPS Next 2Y16.05%
EPS Next 3Y14.49%
EPS Next 5Y15.44%
Revenue Next Year7.99%
Revenue Next 2Y5.2%
Revenue Next 3Y3.11%
Revenue Next 5Y4.18%
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
ET is valuated correctly with a Price/Earnings ratio of 12.55.
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 (25.20), we can say ET is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.95, 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 69.48% of the companies are valued more expensively.
ET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 9.95 |
4.2 Price Multiples
ET's Enterprise Value to EBITDA is on the same level as 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 69.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 8.33 |
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.
A more expensive valuation may be justified as ET's earnings are expected to grow with 14.49% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y16.05%
EPS Next 3Y14.49%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 8.11%, which is a nice return.
Compared to an average industry Dividend Yield of 5.79, ET pays a better dividend. On top of this ET pays more dividend than 82.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.11% |
5.2 History
The dividend of ET decreases each year by -5.21%.
ET has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ET decreased in the last 3 years.
Dividend Growth(5Y)-5.21%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ET pays out 122.46% of its income as dividend. This is not a sustainable payout ratio.
DP122.46%
EPS Next 2Y16.05%
EPS Next 3Y14.49%
ENERGY TRANSFER LP
NYSE:ET (4/25/2024, 5:00:39 PM)
After market: 15.94 0 (0%)15.94
+0.07 (+0.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap53.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 9.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 9.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.57% | ||
| PM (TTM) | 4.41% | ||
| GM | 22.96% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.63%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y26.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.56%
Revenue growth 3Y26.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y