Energy Transfer LP – Key Facts for Investors

Now trading at a price of $12.99, Energy Transfer LP has moved -0.0% so far today.

As of April 2023, Energy Transfer LP shares had a 50-day average price of $12.9. 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 9.1% 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
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 6.55 8.53 5.41 5.67

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 Reasonably Valued:

Energy Transfer LP has a trailing twelve month P/E ratio of 9.6, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $1.52, the company has a forward P/E ratio of 8.5. The 2.7% compound average growth rate of Energy Transfer LP's historical and projected earnings per share yields a PEG ratio of 3.56. 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 1.48 is higher than the sector average of 1.03. The company's shares are currently trading -10.9% below their Graham number.

Energy Transfer LP Has an Average Rating of Buy:

The 14 analysts following Energy Transfer LP have set target prices ranging from $15.0 to $22.0 per share, for an average of $17.29 with a buy rating. As of April 2023, the company is trading -25.4% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

Energy Transfer LP has an average amount of shares sold short because 2.0% of the company's shares are sold short. Institutions own 35.7% of the company's shares, and the insider ownership rate stands at 17.24%, suggesting a large amount of insider shareholders. The largest shareholder is Blackstone Inc, whose 5% stake in the company is worth $1,991,709,663.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.