Enterprise Products Partners logged a -0.3% change during today's morning session, and is now trading at a price of $26.7 per share.
Over the last year, Enterprise Products Partners logged a 2.0% change, with its stock price reaching a high of $27.36 and a low of $22.9. Over the same period, the stock underperformed the S&P 500 index by -3.0%. As of April 2023, the company's 50-day average price was $26.45. Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The large-cap Utilities company is based in Houston, TX. Enterprise Products Partners has offered a 7.3% 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) | $32,789 | $27,200 | $40,807 | $58,186 |
| Gross Margins | 17.5% | 17.8% | 14.0% | 11.5% |
| Operating Margins | 16.8% | 17.0% | 13.5% | 11.1% |
| Net Margins | 14.0% | 13.88% | 11.36% | 9.44% |
| Net Income (MM) | $4,591 | $3,776 | $4,638 | $5,490 |
| Net Interest Expense (MM) | -$1,243 | -$1,287 | -$1,283 | -$1,244 |
| Depreciation & Amort. (MM) | -$1,949 | -$2,072 | -$1,874 | -$1,974 |
| Earnings Per Share | $2.09 | $1.71 | $2.1 | $2.54 |
| EPS Growth | n/a | -18.18% | 22.81% | 20.95% |
| Diluted Shares (MM) | 2,202 | 2,202 | 2,203 | 2,175 |
| Free Cash Flow (MM) | $1,989 | $2,604 | $6,289 | $6,075 |
| Capital Expenditures (MM) | -$4,532 | -$3,288 | -$2,223 | -$1,964 |
| Net Current Assets (MM) | -$28,043 | -$28,820 | -$27,818 | -$29,808 |
| Current Ratio | 0.86 | 1.1 | 1.14 | 0.86 |
| Long Term Debt (MM) | $25,643 | $28,541 | $28,135 | $26,551 |
| Net Debt / EBITDA | 3.49 | 4.11 | 3.4 | 3.21 |
Enterprise Products Partners 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.
A Very Low P/E Ratio but Trades Above Its Graham Number:
Enterprise Products Partners has a trailing twelve month P/E ratio of 10.4, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $2.66, the company has a forward P/E ratio of 9.9. The 4.9% compound average growth rate of Enterprise Products Partners's historical and projected earnings per share yields a PEG ratio of 2.11. This suggests that these shares are overvalued. Furthermore, Enterprise Products Partners is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.15 is higher than the sector average of 1.03. The company's shares are currently trading 10.0% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for Enterprise Products Partners:
The 19 analysts following Enterprise Products Partners have set target prices ranging from $30.0 to $36.0 per share, for an average of $32.16 with a buy rating. As of April 2023, the company is trading -17.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Enterprise Products Partners has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 26.7% of the company's shares, and the insider ownership rate stands at 32.66%, suggesting a large amount of insider shareholders. The largest shareholder is Marquard & Bahls Ag, whose 2% stake in the company is worth $986,528,450.
