Energy Transfer LP
Energy Transfer LP Fundamental Analysis
Energy Transfer LP (ET-PI) shows moderate financial fundamentals with a PE ratio of 14.05, profit margin of 5.93%, and ROE of 14.09%. The company generates $77.7B in annual revenue with weak year-over-year growth of -0.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ET-PI's fundamental strength across five key dimensions:
Efficiency Score
WeakET-PI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentET-PI trades at attractive valuation levels.
Growth Score
WeakET-PI faces weak or negative growth trends.
Financial Health Score
ModerateET-PI shows balanced financial health with some risks.
Profitability Score
WeakET-PI struggles to sustain strong margins.
Key Financial Metrics
Is ET-PI Expensive or Cheap?
P/E Ratio
ET-PI trades at 14.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ET-PI's PEG of 1.60 indicates fair valuation.
Price to Book
The market values Energy Transfer LP at 2.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.44 times EBITDA. This is generally considered low.
How Well Does ET-PI Make Money?
Net Profit Margin
For every $100 in sales, Energy Transfer LP keeps $5.93 as profit after all expenses.
Operating Margin
Core operations generate 11.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.09 in profit for every $100 of shareholder equity.
ROA
Energy Transfer LP generates $3.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Energy Transfer LP produces operating cash flow of $10.20B, showing steady but balanced cash generation.
Free Cash Flow
Energy Transfer LP produces free cash flow of $4.95B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.44 in free cash annually.
FCF Yield
ET-PI converts 8.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.004
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ET-PI Stacks Against Its Sector Peers
| Metric | ET-PI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.05 | 20.19 | Better (Cheaper) |
| ROE | 14.09% | 1019.00% | Weak |
| Net Margin | 5.93% | -44017.00% (disorted) | Weak |
| Debt/Equity | 2.08 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.22 | 4.60 | Neutral |
| ROA | 3.47% | -11655350.00% (disorted) | Weak |
ET-PI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Energy Transfer LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.65%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
658.56%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Commodity
Declining