Don't Judge Enterprise Products Partners on Technicals Alone - Check Its Fundamentals!

Now trading at a price of $27.08, Enterprise Products Partners has moved -0.0% so far today.

Enterprise Products Partners returned gains of 13.0% last year, with its stock price reaching a high of $27.77 and a low of $23.14. Over the same period, the stock underperformed the S&P 500 index by -9.0%. As of April 2023, the company's 50-day average price was $26.8. 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 7.2% 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 10.9, 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 10.1. 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 0.96. 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 1.23, 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 2.18 is higher than the sector average of 1.03. The company's shares are currently trading 1.7% below their Graham number.

Enterprise Products Partners Has an Average Rating of Buy:

The 19 analysts following Enterprise Products Partners have set target prices ranging from $28.0 to $35.0 per share, for an average of $31.84 with a buy rating. As of April 2023, the company is trading -15.8% 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 $1,000,531,445.

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.