Enterprise Products Partners L.P.
Enterprise Products Partners L.P. Fundamental Analysis
Enterprise Products Partners L.P. (EPD) shows strong financial fundamentals with a PE ratio of 13.74, profit margin of 11.03%, and ROE of 19.78%. The company generates $52.0B in annual revenue with strong year-over-year growth of 13.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EPD's fundamental strength across five key dimensions:
Efficiency Score
WeakEPD struggles to generate sufficient returns from assets.
Valuation Score
ModerateEPD shows balanced valuation metrics.
Growth Score
ModerateEPD shows steady but slowing expansion.
Financial Health Score
ModerateEPD shows balanced financial health with some risks.
Profitability Score
ModerateEPD maintains healthy but balanced margins.
Key Financial Metrics
Is EPD Expensive or Cheap?
P/E Ratio
EPD trades at 13.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EPD's PEG of 36.41 indicates potential overvaluation.
Price to Book
The market values Enterprise Products Partners L.P. at 2.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.94 times EBITDA. This is generally considered low.
How Well Does EPD Make Money?
Net Profit Margin
For every $100 in sales, Enterprise Products Partners L.P. keeps $11.03 as profit after all expenses.
Operating Margin
Core operations generate 13.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.78 in profit for every $100 of shareholder equity.
ROA
Enterprise Products Partners L.P. generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Enterprise Products Partners L.P. produces operating cash flow of $6.04B, showing steady but balanced cash generation.
Free Cash Flow
Enterprise Products Partners L.P. produces free cash flow of $1.77B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
EPD converts 2.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
36.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How EPD Stacks Against Its Sector Peers
| Metric | EPD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.74 | 20.19 | Better (Cheaper) |
| ROE | 19.78% | 1019.00% | Weak |
| Net Margin | 11.03% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.00 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.00 | 4.60 | Weak Liquidity |
| ROA | 0.00% | -11655350.00% (disorted) | Weak |
EPD outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Enterprise Products Partners L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.05%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
29.72%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
25.61%
Industry Style: Cyclical, Value, Commodity
High Growth