Analyzing ET Stock – A Comprehensive Market Overview

Now trading at a price of $16.14, Energy Transfer LP has moved 1.1% so far today.

Energy Transfer LP returned gains of 25.4% last year, with its stock price reaching a high of $16.4 and a low of $12.31. Over the same period, the stock underperformed the S&P 500 index by -1.1%. The company's 50-day average price was $15.67. Energy Transfer LP provides energy-related services. Based in Dallas, TX, the Large-Cap Utilities company has 13,786 full time employees. Energy Transfer LP has offered a 7.9% dividend yield over the last 12 months.

The Firm Has a Highly Leveraged Balance Sheet:

2018 2019 2020 2021 2022 2023
Revenue (M) $54,087 $54,213 $38,954 $67,417 $89,876 $78,586
Operating Margins 10% 13% 8% 13% 9% 11%
Net Margins 3% 6% -2% 8% 5% 5%
Net Income (M) $1,749 $3,518 -$648 $5,470 $4,756 $3,935
Net Interest Expense (M) $2,055 $2,331 $2,327 $2,267 $2,306 $2,578
Depreciation & Amort. (M) $2,859 $3,147 $3,678 $3,817 $4,164 $4,385
Diluted Shares (M) 1,461 2,638 2,696 2,740 3,097 3,177
Earnings Per Share $1.2 $1.33 -$0.24 $2.0 $1.54 $1.24
EPS Growth n/a 10.83% -118.05% 933.33% -23.0% -19.48%
Free Cash Flow (M) $99 $2,096 $2,231 $8,340 $5,670 $6,421
CAPEX (M) $7,407 $5,960 $5,130 $2,822 $3,381 $3,134
Total Debt (M) $46,028 $51,054 $51,438 $49,702 $48,262 $52,388
Net Debt / EBITDA 5.52 4.9 7.67 3.92 4.03 4.12
Current Ratio 0.69 0.97 1.07 0.97 1.17 1.1

Energy Transfer LP has growing revenues and decreasing reinvestment in the business, decent operating margins with a stable trend, and just enough current assets to cover current liabilities, as shown by its current ratio of 1.1. We also note that the company benefits from generally positive cash flows and positive EPS growth. However, the firm has a highly leveraged balance sheet.

Energy Transfer LP Is Currently Undervalued:

Energy Transfer LP has a trailing twelve month P/E ratio of 14.4, compared to an average of 17.53 for the Utilities sector. Based on its EPS guidance of $1.64, the company has a forward P/E ratio of 9.6. The 4.6% compound average growth rate of Energy Transfer LP's historical and projected earnings per share yields a PEG ratio of 3.15. This suggests that these shares are overvalued. The market is placing a fair value on Energy Transfer LP's equity, since its P/B ratio of 1.79 is comparable to its sector average of 1.71. The company's shares are currently trading -10.1% above their Graham number.

There's an Analyst Consensus of Some Upside Potential for Energy Transfer LP:

The 15 analysts following Energy Transfer LP have set target prices ranging from $15.0 to $24.0 per share, for an average of $18.68 with a buy rating. The company is trading -13.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Energy Transfer LP has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 34.1% of the company's shares, and the insider ownership rate stands at 10.13%, suggesting a large amount of insider shareholders. The largest shareholder is Blackstone Inc, whose 4% stake in the company is worth $2,379,105,283.

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.