Now trading at a price of $26.43, Enterprise Products Partners has moved 0.2% so far today.
Over the last year, Enterprise Products Partners logged a 1.0% change, with its stock price reaching a high of $27.28 and a low of $22.9. Over the same period, the stock underperformed the S&P 500 index by -7.0%. As of April 2023, the company's 50-day average price was $26.5. 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 7.4% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2018-02-28 | 2019-03-01 | 2020-02-28 | 2021-03-01 | 2022-02-28 | 2023-02-28 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $29,242 | $36,534 | $32,789 | $27,200 | $40,807 | $58,186 |
| Operating Margins | 12% | 13% | 17% | 19% | 15% | 12% |
| Net Margins | 10.0% | 11.0% | 14.0% | 14.0% | 11.0% | 9.0% |
| Net Income (MM) | $2,799 | $4,172 | $4,591 | $3,776 | $4,638 | $5,490 |
| Net Interest Expense (MM) | -$985 | -$1,093 | -$1,231 | -$1,274 | -$1,278 | -$1,233 |
| Depreciation & Amort. (MM) | -$1,644 | -$1,792 | -$1,745 | -$1,840 | -$1,874 | -$1,974 |
| Earnings Per Share | $1.3 | $1.91 | $2.09 | $1.71 | $2.11 | $2.5 |
| EPS Growth | n/a | 46.92% | 9.42% | -18.18% | 23.39% | 18.48% |
| Diluted Shares (MM) | 2,154 | 2,187 | 2,202 | 2,202 | 2,200 | 2,199 |
| Free Cash Flow (MM) | $7,728 | $10,188 | $11,032 | $9,166 | $10,672 | $9,881 |
| Capital Expenditures (MM) | -$3,062 | -$4,062 | -$4,511 | -$3,275 | -$2,159 | -$1,842 |
| Net Current Assets (MM) | -$25,139 | -$26,617 | -$28,043 | -$28,771 | -$27,768 | -$29,759 |
| Long Term Debt (MM) | $21,714 | $24,678 | $25,643 | $28,541 | $28,135 | $26,551 |
| Net Debt / EBITDA | 4.77 | 3.84 | 3.69 | 4.11 | 3.29 | 3.12 |
Enterprise Products Partners Is Fairly Priced at Current Levels:
Enterprise Products Partners has a trailing twelve month P/E ratio of 10.7, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $2.67, the company has a forward P/E ratio of 9.9. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 11.3%. On this basis, Enterprise Products Partners's PEG ratio is 0.95. Using instead the 8.8% weighted average of Enterprise Products Partners's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 1.22, which shows that its shares might be fairly priced. In contrast, Enterprise Products Partners is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.13 is higher than the sector average of 1.03. The company's shares are currently trading -0.8% below their Graham number.
Enterprise Products Partners Has an Analyst Consensus of Some Upside Potential:
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 -17.6% 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 $976,515,749.
