NGL Energy Partners LP
NGL Energy Partners LP Fundamental Analysis
NGL Energy Partners LP (NGL-PB) shows moderate financial fundamentals with a PE ratio of 9.44, profit margin of 5.01%, and ROE of 24.42%. The company generates $3.2B in annual revenue with weak year-over-year growth of -16.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NGL-PB's fundamental strength across five key dimensions:
Efficiency Score
WeakNGL-PB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNGL-PB trades at attractive valuation levels.
Growth Score
ModerateNGL-PB shows steady but slowing expansion.
Financial Health Score
ModerateNGL-PB shows balanced financial health with some risks.
Profitability Score
ModerateNGL-PB maintains healthy but balanced margins.
Key Financial Metrics
Is NGL-PB Expensive or Cheap?
P/E Ratio
NGL-PB trades at 9.44 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NGL-PB's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values NGL Energy Partners LP at 2.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.59 times EBITDA. This is generally considered low.
How Well Does NGL-PB Make Money?
Net Profit Margin
For every $100 in sales, NGL Energy Partners LP keeps $5.01 as profit after all expenses.
Operating Margin
Core operations generate 12.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.42 in profit for every $100 of shareholder equity.
ROA
NGL Energy Partners LP generates $3.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NGL Energy Partners LP produces operating cash flow of $522.94M, showing steady but balanced cash generation.
Free Cash Flow
NGL Energy Partners LP produces free cash flow of $289.70M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.33 in free cash annually.
FCF Yield
NGL-PB converts 19.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How NGL-PB Stacks Against Its Sector Peers
| Metric | NGL-PB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.44 | 20.19 | Better (Cheaper) |
| ROE | 24.42% | 1019.00% | Weak |
| Net Margin | 5.01% | -44017.00% (disorted) | Weak |
| Debt/Equity | 5.05 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.12 | 4.60 | Neutral |
| ROA | 3.63% | -11655350.00% (disorted) | Weak |
NGL-PB outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NGL Energy Partners LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-55.85%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
109.57%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-38.13%
Industry Style: Cyclical, Value, Commodity
Declining