Now trading at a price of $33.63, Enterprise Products has moved 0.9% so far today.
Enterprise Products returned gains of 21.6% last year, with its stock price reaching a high of $34.63 and a low of $27.26. Over the same period, the stock outperformed the S&P 500 index by 3.0%. More recently, the company's 50-day average price was $32.6. 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 has offered a 6.3% dividend yield over the last 12 months.
The Firm Has a Highly Leveraged Balance Sheet:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $36,534 | $32,789 | $27,200 | $40,807 | $58,186 | $49,715 |
| Operating Margins | 15% | 19% | 19% | 15% | 12% | 14% |
| Net Margins | 11% | 14% | 14% | 11% | 9% | 11% |
| Net Income (M) | $4,172 | $4,591 | $3,775 | $4,634 | $5,487 | $5,529 |
| Net Interest Expense (M) | $1,097 | $1,243 | $1,287 | $1,283 | $1,244 | $1,269 |
| Depreciation & Amort. (M) | $1,792 | $1,949 | $2,072 | $151 | $177 | $201 |
| Diluted Shares (M) | 2,187 | 2,202 | 2,202 | 2,203 | 2,199 | 2,194 |
| Earnings Per Share | $1.91 | $2.09 | $1.71 | $2.1 | $2.5 | $2.52 |
| EPS Growth | n/a | 9.42% | -18.18% | 22.81% | 19.05% | 0.8% |
| Avg. Price | $18.89 | $20.7 | $15.22 | $19.63 | $23.14 | n/a |
| P/E Ratio | 9.79 | 9.86 | 8.85 | 9.26 | 9.18 | nan |
| Free Cash Flow (M) | $1,903 | $1,989 | $2,603 | $6,290 | $6,075 | $4,303 |
| CAPEX (M) | $4,223 | $4,532 | $3,288 | $2,223 | $1,964 | $3,266 |
| EV / EBITDA | 9.26 | 9.03 | 8.74 | 11.12 | 11.09 | nan |
| Total Debt (M) | $26,178 | $27,625 | $29,866 | $29,535 | $28,295 | $28,748 |
| Net Debt / EBITDA | 3.59 | 3.4 | 4.05 | 4.27 | 3.98 | 4.01 |
| Current Ratio | 0.85 | 0.86 | 1.1 | 1.14 | 0.86 | 0.93 |
Enterprise Products has weak operating margins with a stable trend, not enough current assets to cover current liabilities because its current ratio is 0.93, and a highly leveraged balance sheet. On the other hand, the company benefits from generally positive cash flows and positive EPS growth. Furthermore, Enterprise Products has growing revenues and decreasing reinvestment in the business.
a Very Low P/E Ratio but Its Shares Are Expensive:
Enterprise Products has a trailing twelve month P/E ratio of 12.1, compared to an average of 20.52 for the Utilities sector. Based on its EPS guidance of $2.85, the company has a forward P/E ratio of 11.4. The 5.9% compound average growth rate of Enterprise Products's historical and projected earnings per share yields a PEG ratio of 2.06. This suggests that these shares are overvalued. Furthermore, Enterprise Products is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.57 is higher than the sector average of 2.2. The company's shares are currently trading 25.8% below their Graham number.
Enterprise Products Has an Average Rating of Buy:
The 18 analysts following Enterprise Products have set target prices ranging from $32.0 to $40.0 per share, for an average of $36.45 with a buy rating. The company is trading -7.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Enterprise Products has a very low short interest because 1.8% of the company's shares are sold short. Institutions own 25.8% of the company's shares, and the insider ownership rate stands at 33.13%, suggesting a large amount of insider shareholders. The largest shareholder is Alps Advisors Inc., whose 2% stake in the company is worth $1,323,523,576.
