ENERGY TRANSFER LP (ET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ET - US29273V1008
16.96 USD
+0.07 (+0.41%)
16.9764 USD
+0.02 (+0.1%)
Taking everything into account, ET scores 4 out of 10 in our fundamental rating. ET was compared to 208 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 correct valuation and a medium growth rate.
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.
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
ET has a Return On Assets (3.33%) which is comparable to the rest of the industry.
ET has a Return On Equity of 12.44%. This is in the better half of the industry: ET outperforms 71.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.24%, ET is in line with its industry, outperforming 57.21% 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 21.28%.
| 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
With a Profit Margin value of 5.41%, ET perfoms like the industry average, outperforming 47.12% of the companies in the same industry.
In the last couple of years the Profit Margin of ET has declined.
With a Operating Margin value of 11.59%, ET perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
ET's Operating Margin has declined in the last couple of years.
ET's Gross Margin of 26.98% is on the low side compared to the rest of the industry. ET is outperformed by 62.50% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
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.
ET has a Debt to FCF ratio (12.16) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.82 is on the high side and indicates that ET has dependencies on debt financing.
ET has a worse Debt to Equity ratio (1.82) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 12.16 | ||
| Altman-Z | N/A |
ROIC/WACC0.8
WACC7.76%
2.3 Liquidity
ET has a Current Ratio of 1.41. 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 better Current ratio (1.41) than 63.46% 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.
ET has a Quick ratio of 1.14. This is in the better half of the industry: ET outperforms 60.10% of its industry peers.
| 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%.
ET shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.95% yearly.
Looking at the last year, ET shows a decrease in Revenue. The Revenue has decreased by -4.67% in the last year.
The Revenue has been growing by 8.81% on average over the past years. This is quite good.
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%-3.94%
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 15.34% on average per year.
ET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y26.68%
EPS Next 2Y20.25%
EPS Next 3Y16.06%
EPS Next 5Y15.34%
Revenue Next Year-0.97%
Revenue Next 2Y5.48%
Revenue Next 3Y5.03%
Revenue Next 5Y4.2%
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 13.57 indicates a correct valuation of ET.
61.06% of the companies in the same industry are more expensive than ET, based on the Price/Earnings ratio.
ET's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
ET is valuated reasonably with a Price/Forward Earnings ratio of 10.47.
ET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ET is cheaper than 73.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. ET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ET is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ET is valued a bit cheaper than the industry average as 74.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.22 | ||
| EV/EBITDA | 7.94 |
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 16.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y20.25%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.07%, ET is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.96, ET pays a better dividend. On top of this ET pays more dividend than 83.17% of the companies listed in the same industry.
ET's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.07% |
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
108.83% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
ET's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP108.83%
EPS Next 2Y20.25%
EPS Next 3Y16.06%
16.96
+0.07 (+0.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners29.47%
Inst Owner ChangeN/A
Ins Owners9.2%
Ins Owner Change2.47%
Market Cap58.23B
Revenue(TTM)79.76B
Net Income(TTM)4.31B
Analysts85.71
Price Target22.05 (30.01%)
Short Float %1%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.07% |
Yearly Dividend1.36
Dividend Growth(5Y)16.95%
DP108.83%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-12.33%
Min Revenue beat(2)-14.95%
Max Revenue beat(2)-9.7%
Revenue beat(4)0
Avg Revenue beat(4)-10.93%
Min Revenue beat(4)-14.95%
Max Revenue beat(4)-5.25%
Revenue beat(8)0
Avg Revenue beat(8)-8.64%
Revenue beat(12)0
Avg Revenue beat(12)-9.46%
Revenue beat(16)3
Avg Revenue beat(16)-5.14%
PT rev (1m)-0.51%
PT rev (3m)-4.01%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-3.09%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)6.84%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 10.47 | ||
| P/S | 0.73 | ||
| P/FCF | 11.22 | ||
| P/OCF | 5.37 | ||
| P/B | 1.68 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)1.25
EY7.37%
EPS(NY)1.62
Fwd EY9.55%
FCF(TTM)1.51
FCFY8.91%
OCF(TTM)3.16
OCFY18.62%
SpS23.23
BVpS10.1
TBVpS7.31
PEG (NY)0.51
PEG (5Y)N/A
Graham Number16.85
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
WACC7.76%
ROIC/WACC0.8
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 Y26.68%
EPS Next 2Y20.25%
EPS Next 3Y16.06%
EPS Next 5Y15.34%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y7.04%
Revenue growth 5Y8.81%
Sales Q2Q%-3.94%
Revenue Next Year-0.97%
Revenue Next 2Y5.48%
Revenue Next 3Y5.03%
Revenue Next 5Y4.2%
EBIT growth 1Y1.83%
EBIT growth 3Y1.41%
EBIT growth 5Y4.78%
EBIT Next Year63.75%
EBIT Next 3Y22.35%
EBIT Next 5Y14.64%
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.
Can you provide the valuation status for ENERGY TRANSFER LP?
ChartMill assigns a valuation rating of 6 / 10 to ENERGY TRANSFER LP (ET). This can be considered as Fairly Valued.
What is the profitability of ET stock?
ENERGY TRANSFER LP (ET) has a profitability rating of 4 / 10.
Can you provide the financial health for ET stock?
The financial health rating of ENERGY TRANSFER LP (ET) is 2 / 10.
Is the dividend of ENERGY TRANSFER LP sustainable?
The dividend rating of ENERGY TRANSFER LP (ET) is 6 / 10 and the dividend payout ratio is 108.83%.