ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
USA - NYSE:ET - US29273V1008
16.45 USD
-0.23 (-1.38%)
16.4602 USD
+0.01 (+0.06%)
Taking everything into account, ET scores 4 out of 10 in our fundamental rating. ET was compared to 211 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
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.
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 3.57%, ET is in line with its industry, outperforming 52.61% of the companies in the same industry.
ET's Return On Equity of 12.85% is fine compared to the rest of the industry. ET outperforms 69.67% of its industry peers.
ET has a Return On Invested Capital (6.47%) which is comparable to the rest of the industry.
ET had an Average Return On Invested Capital over the past 3 years of 6.53%. This is significantly below the industry average of 21.53%.
| 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
With a Profit Margin value of 5.55%, ET perfoms like the industry average, outperforming 45.97% of the companies in the same industry.
ET's Profit Margin has declined in the last couple of years.
ET's Operating Margin of 11.50% is in line compared to the rest of the industry. ET outperforms 42.18% of its industry peers.
ET's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 26.42%, ET is not doing good in the industry: 62.09% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ET is destroying value.
Compared to 1 year ago, ET has more shares outstanding
Compared to 5 years ago, ET has more shares outstanding
Compared to 1 year ago, ET has a worse debt to assets ratio.
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's Debt to Equity ratio of 1.75 is on the low side compared to the rest of the industry. ET is outperformed by 78.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.66 | ||
| Altman-Z | N/A |
ROIC/WACC0.82
WACC7.91%
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's Current ratio of 1.15 is in line compared to the rest of the industry. ET outperforms 49.29% of its industry peers.
ET has a Quick Ratio of 1.15. This is a bad value and indicates that ET is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.92, ET perfoms like the industry average, outperforming 48.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
ET shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.61%.
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 decreased by -3.65% 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)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
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 5.42% on average per year.
EPS Next Y31.3%
EPS Next 2Y20.83%
EPS Next 3Y14.77%
EPS Next 5Y16.96%
Revenue Next Year0.43%
Revenue Next 2Y4.33%
Revenue Next 3Y4.18%
Revenue Next 5Y5.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
ET is valuated correctly with a Price/Earnings ratio of 12.75.
ET's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.40, ET is valued rather cheaply.
ET is valuated reasonably with a Price/Forward Earnings ratio of 10.06.
Based on the Price/Forward Earnings ratio, ET is valued a bit cheaper than the industry average as 67.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, ET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 10.06 |
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 75.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 8 |
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)0.41
PEG (5Y)N/A
EPS Next 2Y20.83%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 7.38%, which is a nice return.
Compared to an average industry Dividend Yield of 6.28, ET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.38% |
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
103.92% of the earnings are spent on dividend by ET. 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%
16.45
-0.23 (-1.38%)
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 Cap56.47B
Analysts86.67
Price Target22.91 (39.27%)
Short Float %0.84%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.38% |
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)-0.13%
PT rev (3m)-1.47%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-5.79%
EPS NY rev (1m)-2.15%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 10.06 | ||
| P/S | 0.7 | ||
| P/FCF | 9.9 | ||
| P/OCF | 5.07 | ||
| P/B | 1.62 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 8 |
EPS(TTM)1.29
EY7.84%
EPS(NY)1.64
Fwd EY9.94%
FCF(TTM)1.66
FCFY10.1%
OCF(TTM)3.25
OCFY19.73%
SpS23.47
BVpS10.13
TBVpS7.31
PEG (NY)0.41
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
WACC7.91%
ROIC/WACC0.82
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 Year0.43%
Revenue Next 2Y4.33%
Revenue Next 3Y4.18%
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%