Energy Transfer LP logged a 2.2% change during today's afternoon session, and is now trading at a price of $11.94 per share. Both the S&P 500 and the Nasdaq posted a 1.5% change. ET's trading volume is 15,880,530 compared to the stock's average volume of 18,092,706.
Over the last 52 weeks, the stock moved 42.3%, with a high of $12.95 and a low of $8.1. During this time, the stock underperformed the S&P 500 index by 60.9%.Energy Transfer LP provides energy-related services. The large-cap Energy company has 12,558 full time employees and is based in Dallas, TX. Energy Transfer LP has returned a 7.4% dividend yield over the last 12 months.
Snapshot of the Company's Strong Margins and Improving Cash Flows:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $54,087 | $54,213 | $38,954 | $67,417 |
| Revenue Growth | n/a | 0.2% | -28.2% | 73.1% |
| Gross Margins | 17.69% | 20.92% | 25.13% | 19.59% |
| Gross Margins Growth | n/a | 18.26% | 20.12% | -22.05% |
| Free Cash Flow (MM) | $99 | $2,043 | $2,231 | $8,340 |
| FCF Growth | n/a | 1963.64% | 9.2% | 273.82% |
| Net Debt / EBITDA | 4.99 | 4.66 | 5.29 | 3.81 |
Basic Valuation Metrics Show Energy transfer Is Undervalued:
Compared to the Energy sector's average of 9.11, Energy Transfer LP has a trailing twelve month price to earnings (P/E) ratio of 8.9 and, based on its Eps guidance of 1.58, an expected P/E ratio of 7.6. The firm's price to earnings growth (PEG) is -1.91, which indicates that the company is undervalued in terms of its expected earnings growth. Energy Transfer LP's price to book (P/B) ratio is 1.4 compared to its sector average of 1.45.
As of the date of publication, the company is trading -26.2% below their Graham number, implying there is a margin of safety for the stock. We calculate the Graham number as follows:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 1.34 * 8.664) = $16.16
There is Mixed Market Sentiment About Energy Transfer LP:
16 analysts are following Energy Transfer LP and have set target prices ranging from $14 to $21 per share. On average, they have given the company a rating of buy. At today's prices, ET is trading -26.82% away from its average analyst target price of $16.31 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 3.0% of the company's shares are tied to short positions. Institutions own 43.9% of Energy Transfer LP's shares, while the insider ownership rate stands at 19.79%. The biggest shareholder is Blackstone Inc with a 5.77% stake in the company worth approximately $2,127,478,533.00.
