Enterprise Products Partners logged a 0.0% change during today's morning session, and is now trading at a price of $26.25 per share.
Enterprise Products Partners returned gains of 9.0% last year, with its stock price reaching a high of $27.95 and a low of $23.14. Over the same period, the stock underperformed the S&P 500 index by -6.0%. As of April 2023, the company's 50-day average price was $26.96. 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 7.5% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $36,534 | $32,789 | $27,200 | $40,807 | $58,186 | $52,213 |
| Gross Margins | 13% | 17% | 17% | 14% | 11% | 12% |
| Operating Margins | 15.0% | 19.0% | 19.0% | 15.0% | 12.0% | 13.0% |
| Net Margins | 12.0% | 14.0% | 14.0% | 12.0% | 10.0% | 11.0% |
| Net Income (MM) | $4,238 | $4,687 | $3,886 | $4,755 | $5,615 | $5,549 |
| Net Interest Expense (MM) | $1,097 | $1,243 | $1,287 | $1,283 | $1,244 | $1,232 |
| Depreciation & Amort. (MM) | $1,792 | $1,949 | $2,072 | $1,705 | $1,779 | $1,799 |
| Earnings Per Share | $1.94 | $2.13 | $1.76 | $2.16 | $2.55 | $2.53 |
| Diluted Shares (MM) | 2,187 | 2,202 | 2,202 | 2,203 | 2,199 | 2,190 |
| Free Cash Flow (MM) | $1,903 | $1,989 | $2,603 | $6,290 | $6,075 | $4,594 |
| Capital Expenditures (MM) | $4,223 | $4,532 | $3,288 | $2,223 | $1,964 | $2,666 |
| Net Current Assets (MM) | -$1,939 | -$2,399 | -$70 | $517 | -$3,061 | -$2,367 |
| Long Term Debt (MM) | $24,678 | $25,643 | $28,541 | $28,135 | $26,551 | $27,443 |
| Net Debt / EBITDA | 4.14 | 4.09 | 4.85 | 4.49 | 4.18 | 4.16 |
Enterprise Products Partners has growing revenues and decreasing reinvestment in the business, decent operating margins with a stable trend, and positive EPS growth. However, the firm suffers from slimmer gross margins than its peers and a highly leveraged balance sheet. Finally, we note that Enterprise Products Partners has irregular cash flows.
Enterprise Products Partners Is Fairly Valued:
Enterprise Products Partners has a trailing twelve month P/E ratio of 11.0, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $2.62, the company has a forward P/E ratio of 10.3. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 4.5%. On this basis, the company's PEG ratio is 2.42, which suggests that it is overpriced. Furthermore, Enterprise Products Partners is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.1 is higher than the sector average of 1.03. The company's shares are currently trading -3.3% below their Graham number.
Analysts Give Enterprise Products Partners 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 -15.3% 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 1.2% 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 Alps Advisors Inc., whose 2% stake in the company is worth $996,224,985.
