Enterprise Products Partners (NYSE:EPD) - Share price, News & Analysis

EPD fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	3/6
Financial Health	2/6
Dividends	6/6

EPD Stock Overview

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.

Rewards

Trading at 20.5% below our estimate of its fair value

Earnings are forecast to grow 2.37% per year

Earnings have grown 9% per year over the past 5 years

Pays a high and reliable dividend of 6.8%

Risk Analysis

Has a high level of debt

Enterprise Products Partners Competitors

Kinder Morgan

NYSE:KMI

US$44.0b

MPLX

NYSE:MPLX

US$32.6b

ONEOK

NYSE:OKE

US$29.1b

Targa Resources

NYSE:TRGP

US$16.1b

Price History & Performance

Summary of all time highs, changes and price drops for Enterprise Products Partners
Historical stock prices
Current Share Price	US$27.34
52 Week High	US$27.65
52 Week Low	US$20.42
Beta	1.12
1 Month Change	5.56%
3 Month Change	17.19%
1 Year Change	16.19%
3 Year Change	-2.01%
5 Year Change	1.98%
Change since IPO	408.65%

Recent News & Updates

May 15

Enterprise Products Partners: A SWAN Midstream Operator At A Discount

EPD is the best-run midstream operator and has a wide moat through its irreplaceable asset base. Units are still undervalued at 7x cash flows and have a 7.1% yield. The distribution is very safe, with 1.8x coverage and a 23-year streak of increases.

May 09

Enterprise Products Partners Continues To Have Strong Potential

Enterprise Products Partners has one of the best management teams in the midstream industry with an almost $100 billion EV. The company's financial picture is strong, but that strength means it tends to trade at a more expensive valuation. We expect the company to continue generating high-single-digit to low-double-digit shareholder returns.

May 03

2 Sky-High Safe Yields: Western Midstream And Enterprise Products Partners

EPD just reported Q1 results and we break down how it impacts our investment thesis. WES has not yet reported, but is a compelling buy at the moment. We look at the valuations for both and discuss which one we find more attractive at the moment.

Shareholder Returns

	EPD	US Oil and Gas	US Market
7D	2.7%	5.5%	1.0%
1Y	16.2%	60.5%	-15.1%

Return vs Industry: EPD underperformed the US Oil and Gas industry which returned 58.6% over the past year.

Return vs Market: EPD exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is EPD's price volatile compared to industry and market?
EPD volatility
EPD Average Weekly Movement	2.7%
Oil and Gas Industry Average Movement	8.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: EPD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EPD's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1968	n/a	Jim Teague	https://www.enterpriseproducts.com

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 company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services.

Enterprise Products Partners Fundamentals Summary

How do Enterprise Products Partners's earnings and revenue compare to its market cap?
EPD fundamental statistics
Market Cap	US$59.61b
Earnings (TTM)	US$4.55b
Revenue (TTM)	US$44.66b

13.1x

P/E Ratio

1.3x

P/S Ratio

Is EPD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EPD income statement (TTM)
Revenue	US$44.66b
Cost of Revenue	US$38.76b
Gross Profit	US$5.90b
Other Expenses	US$1.35b
Earnings	US$4.55b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.09
Gross Margin	13.22%
Net Profit Margin	10.19%
Debt/Equity Ratio	110.5%

How did EPD perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

88%

Payout Ratio

Valuation

Is Enterprise Products Partners undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

20.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EPD ($27.34) is trading below our estimate of fair value ($34.38)

Significantly Below Fair Value: EPD is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: EPD is good value based on its Price-To-Earnings Ratio (13.1x) compared to the US Oil and Gas industry average (13.6x).

PE vs Market: EPD is good value based on its Price-To-Earnings Ratio (13.1x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: EPD is poor value based on its PEG Ratio (5.5x)

Price to Book Ratio

PB vs Industry: EPD is overvalued based on its Price-To-Book Ratio (2.3x) compared to the US Oil and Gas industry average (2x).

Future Growth

How is Enterprise Products Partners forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPD's forecast earnings growth (2.4% per year) is above the savings rate (1.9%).

Earnings vs Market: EPD's earnings (2.4% per year) are forecast to grow slower than the US market (12.1% per year).

High Growth Earnings: EPD's earnings are forecast to grow, but not significantly.

Revenue vs Market: EPD's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: EPD's revenue is forecast to decline over the next 3 years (-1.2% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EPD's Return on Equity is forecast to be low in 3 years time (18.7%).

Past Performance

How has Enterprise Products Partners performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EPD has high quality earnings.

Growing Profit Margin: EPD's current net profit margins (10.2%) are lower than last year (12.9%).

Past Earnings Growth Analysis

Earnings Trend: EPD's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: EPD's earnings growth over the past year (22%) exceeds its 5-year average (9% per year).

Earnings vs Industry: EPD earnings growth over the past year (22%) underperformed the Oil and Gas industry 88.4%.

Return on Equity

High ROE: EPD's Return on Equity (17.7%) is considered low.

Financial Health

How is Enterprise Products Partners's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EPD's short term assets ($13.0B) do not cover its short term liabilities ($15.4B).

Long Term Liabilities: EPD's short term assets ($13.0B) do not cover its long term liabilities ($28.2B).

Debt to Equity History and Analysis

Debt Level: EPD's net debt to equity ratio (109.7%) is considered high.

Reducing Debt: EPD's debt to equity ratio has increased from 102.7% to 110.5% over the past 5 years.

Debt Coverage: EPD's debt is well covered by operating cash flow (29.3%).

Interest Coverage: EPD's interest payments on its debt are well covered by EBIT (4.5x coverage).

Balance Sheet

Dividend

What is Enterprise Products Partners's current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EPD's dividend (6.8%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: EPD's dividend (6.8%) is in the top 25% of dividend payers in the US market (4.06%)

Stability and Growth of Payments

Stable Dividend: EPD's dividends per share have been stable in the past 10 years.

Growing Dividend: EPD's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (87.7%), EPD's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (60.2%), EPD's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure

CEO

Jim Teague (76 yo)

2.33yrs

Tenure

US$10,416,514

Compensation

Mr. A. James Teague, also known as Jim, is a Co-Chief Executive Officer at Enterprise Products Holdings LLC, the general Partner of Enterprise Products Partners L.P. since January 28, 2020. Mr. Teague had...

CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD10.42M) is about average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: EPD's management team is seasoned and experienced (6.6 years average tenure).

Board Members

Experienced Board: EPD's board of directors are considered experienced (7.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: EPD insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31