Energy Transfer LP logged a 0.3% change during today's afternoon session, and is now trading at a price of $12.68 per share.
Energy Transfer LP returned gains of 24.2% last year, with its stock price reaching a high of $13.67 and a low of $9.15. Over the same period, the stock outperformed the S&P 500 index by 10.0%. More recently, the company's 50-day average price was $12.67. Energy Transfer LP provides energy-related services. Based in Dallas, TX, the large-cap Utilities company has 12,565 full time employees. Energy Transfer LP has offered a 8.8% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $54,213 | $38,954 | $67,417 | $89,876 |
| Gross Margins | 20.9% | 25.1% | 19.6% | 15.0% |
| Operating Margins | 13.6% | 15.0% | 13.1% | 9.0% |
| Net Margins | 6.63% | -1.66% | 8.11% | 5.29% |
| Net Income (MM) | $3,592 | -$648 | $5,470 | $4,756 |
| Net Interest Expense (MM) | -2,331 | -2,327 | -2,267 | -2,306 |
| Net Interest Expense (MM) | -$2,331 | -$2,327 | -$2,267 | -$2,306 |
| Depreciation & Amort. (MM) | -$3,147 | -$3,678 | -$3,817 | -$4,164 |
| Earnings Per Share | $1.33 | -$0.24 | $1.89 | $1.34 |
| EPS Growth | n/a | -118.05% | 887.5% | -29.1% |
| Diluted Shares (MM) | 2,638 | 2,696 | 2,734 | 3,141 |
| Free Cash Flow (MM) | $2,043 | $2,231 | $8,340 | $5,670 |
| Capital Expenditures (MM) | -$5,960 | -$5,130 | -$2,822 | -$3,381 |
| Net Current Assets (MM) | -$56,429 | -$56,677 | -$55,298 | -$52,410 |
| Current Ratio | 1.02 | 1.07 | 0.97 | 1.17 |
| Long Term Debt (MM) | $51,028 | $51,417 | $49,022 | $48,260 |
| Net Debt / EBITDA | 5.49 | 9.14 | 4.21 | 4.2 |
Energy Transfer LP has strong margins with a negative growth trend and growing revenues and decreasing reinvestment in the business. Additionally, the company's financial statements display positive EPS growth and generally positive cash flows. However, the firm suffers from slimmer gross margins than its peers and a highly leveraged balance sheet. Finally, we note that Energy Transfer LP has just enough current assets to cover current liabilities.
Energy Transfer LP Is Fairly Priced at Current Levels:
Energy Transfer LP has a trailing twelve month P/E ratio of 9.5, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $1.56, the company has a forward P/E ratio of 8.1. The 3.2% compound average growth rate of Energy Transfer LP's historical and projected earnings per share yields a PEG ratio of 2.92. This suggests that these shares are overvalued. Furthermore, Energy Transfer LP is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.45 is higher than the sector average of 1.03. The company's shares are currently trading -13.0% below their Graham number.
Energy Transfer LP Has an Analyst Consensus of Strong Upside Potential:
The 14 analysts following Energy Transfer LP have set target prices ranging from $15.0 to $22.0 per share, for an average of $17.21 with a buy rating. As of April 2023, the company is trading -26.4% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Energy Transfer LP has a very low short interest because 1.9% of the company's shares are sold short. Institutions own 37.6% of the company's shares, and the insider ownership rate stands at 17.2%, suggesting a large amount of insider shareholders. The largest shareholder is Blackstone Inc, whose 5% stake in the company is worth $1,952,424,121.
