Tallgrass Energy Partners, LP
Tallgrass Energy Partners, LP Fundamental Analysis
Tallgrass Energy Partners, LP (TEP) shows strong financial fundamentals with a PE ratio of 7.27, profit margin of 66.17%, and ROE of 28.70%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.4/100 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 TEP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTEP demonstrates superior asset utilization.
Valuation Score
ExcellentTEP trades at attractive valuation levels.
Growth Score
WeakTEP faces weak or negative growth trends.
Financial Health Score
WeakTEP carries high financial risk with limited liquidity.
Profitability Score
ModerateTEP maintains healthy but balanced margins.
Key Financial Metrics
Is TEP Expensive or Cheap?
P/E Ratio
TEP trades at 7.27 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TEP's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Tallgrass Energy Partners, LP at 2.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.77 times EBITDA. This is generally considered low.
How Well Does TEP Make Money?
Net Profit Margin
For every $100 in sales, Tallgrass Energy Partners, LP keeps $66.17 as profit after all expenses.
Operating Margin
Core operations generate 41.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.70 in profit for every $100 of shareholder equity.
ROA
Tallgrass Energy Partners, LP generates $10.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $5.95 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How TEP Stacks Against Its Sector Peers
| Metric | TEP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.27 | 21.17 | Better (Cheaper) |
| ROE | 28.70% | 943.00% | Weak |
| Net Margin | 66.17% | -75302.00% (disorted) | Strong |
| Debt/Equity | 1.38 | -0.48 (disorted) | Distorted |
| Current Ratio | 0.60 | 6.33 | Weak Liquidity |
| ROA | 10.91% | -10948340.00% (disorted) | Strong |
TEP outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tallgrass 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
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity