A strong performer from today's morning trading session is Energy Transfer LP, whose shares rose 1.1% to $19.42 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
Energy Transfer LP Is Currently Under Priced:
Energy Transfer LP provides energy-related services. The company belongs to the Utilities sector, which has an average price to earnings (P/E) ratio of 20.52 and an average price to book (P/B) ratio of 2.2. In contrast, Energy Transfer LP has a trailing 12 month P/E ratio of 14.3 and a P/B ratio of 2.12.
Energy Transfer LP has moved 39.8% over the last year compared to 31.3% for the S&P 500 — a difference of 8.5%. Energy Transfer LP has a 52 week high of $19.71 and a 52 week low of $13.12.
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 | $52,390 |
| 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 |
