NYSE:EPD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Enterprise Products Partners

Executive Summary

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


Snowflake Analysis


Similar Companies

Share Price & News

How has Enterprise Products Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EPD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

EPD

4.0%

US Oil and Gas

1.2%

US Market


1 Year Return

-35.5%

EPD

-32.3%

US Oil and Gas

16.8%

US Market

Return vs Industry: EPD exceeded the US Oil and Gas industry which returned -43% over the past year.

Return vs Market: EPD underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

EPDIndustryMarket
7 Day3.0%4.0%1.2%
30 Day6.1%6.9%4.9%
90 Day7.6%6.0%20.0%
1 Year-29.9%-35.5%-29.3%-32.3%19.3%16.8%
3 Year-10.2%-27.1%-28.8%-36.3%43.7%34.4%
5 Year-13.5%-37.7%-31.2%-42.1%75.5%56.6%

Price Volatility Vs. Market

How volatile is Enterprise Products Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EPD ($18.31) is trading below our estimate of fair value ($24.56)

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 PE Ratio (9x) compared to the US Oil and Gas industry average (9.1x).

PE vs Market: EPD is good value based on its PE Ratio (9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: EPD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: EPD is overvalued based on its PB Ratio (1.6x) compared to the US Oil and Gas industry average (0.7x).

Future Growth

How is Enterprise Products Partners forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPD's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: EPD's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: EPD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EPD's revenue (3.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: EPD's revenue (3.3% per year) is forecast to grow slower than 20% 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 (17%).

Past Performance

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

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPD has high quality earnings.

Growing Profit Margin: EPD's current net profit margins (15.3%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: EPD's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: EPD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EPD had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-47.9%).


Return on Equity

High ROE: EPD's Return on Equity (17.6%) is considered low.

Financial Health

How is Enterprise Products Partners's financial position?


Financial Position Analysis

Short Term Liabilities: EPD's short term assets ($7.7B) exceed its short term liabilities ($6.9B).

Long Term Liabilities: EPD's short term assets ($7.7B) do not cover its long term liabilities ($29.2B).


Debt to Equity History and Analysis

Debt Level: EPD's debt to equity ratio (114.4%) is considered high.

Reducing Debt: EPD's debt to equity ratio has increased from 109.5% to 114.4% over the past 5 years.

Debt Coverage: EPD's debt is well covered by operating cash flow (24.7%).

Interest Coverage: EPD's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Dividend

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

9.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EPD's dividend (9.72%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: EPD's dividend (9.72%) is in the top 25% of dividend payers in the US market (4.35%)


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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87%), EPD's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EPD's dividends in 3 years are not forecast to be well covered by earnings (94.2% payout ratio).

Management

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

4.3yrs

Average management tenure


CEO

Jim Teague (75 yo)

0.58

Tenure

US$10,537,661

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 ($USD10.54M) is about average for companies of similar size in the US market ($USD11.30M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
A. Teague
Co-CEO & Director of Enterprise Products Holdings LLC0.58yrUS$10.54m0.093%
$ 37.4m
W. Fowler
Co-CEO & CFO and Director of Enterprise Products Holdings LLC8.92yrsUS$7.04m0.073%
$ 29.2m
Graham Bacon
Executive VP & COO of Enterprise Products Holdings LLC4.83yrsUS$3.73m0.014%
$ 5.7m
Harry Weitzel
Executive VP3.75yrsUS$1.89m0.0038%
$ 1.5m
Brent Secrest
Executive VP & Chief Commercial Officer of Enterprise Products Holdings LLC4.25yrsUS$2.36m0.0041%
$ 1.6m
Michael Hanson
VP & Principal Accounting Officer of Enterprise Products Holdings LLC4yrsno data0.0059%
$ 2.4m
Paul Flynn
Senior VP & Chief Information Officer-Enterprise Products Holdings LLC15.5yrsno datano data
Christian Nelly
Executive VP of Finance & Sustainability and Treasurer0.58yrno data0.0034%
$ 1.4m
Karen Taylor
Senior Vice President of Human Resources - Enterprise Products Holdings LLC4yrsno datano data
Anthony Chovanec
Senior Vice President of Enterprise Products Holdings LLC6.17yrsno datano data
Gerald Cardillo
Group Senior Vice President of Transportation and Distribution - Enterprise Products Holdings LLC5.5yrsno datano data
Albert Martinez
Senior Vice President of NGL Marketing & Supply - Enterprise Products Holdings LLC6.58yrsno datano data

4.3yrs

Average Tenure

56yo

Average Age

Experienced Management: EPD's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
A. Teague
Co-CEO & Director of Enterprise Products Holdings LLC0.58yrUS$10.54m0.093%
$ 37.4m
W. Fowler
Co-CEO & CFO and Director of Enterprise Products Holdings LLC8.92yrsUS$7.04m0.073%
$ 29.2m
Harry Weitzel
Executive VP3.75yrsUS$1.89m0.0038%
$ 1.5m
James Hackett
Independent Director of Enterprise Products Holdings LLC6.33yrsUS$185.00k0.013%
$ 5.1m
Richard Bachmann
Vice Chairman of Enterprise Products Holdings LLC4.58yrsUS$2.82m0.075%
$ 30.0m
Ralph Cunningham
Advisory Director of Enterprise Products Holdings LLC1.58yrsUS$828.40k0.044%
$ 17.7m
Randa Duncan Williams
Chairman of Enterprise Products Holdings LLC7.5yrsno data0.99%
$ 397.5m
Richard Snell
Independent Director of Enterprise Products Holdings LLC8.92yrsUS$170.00k0.0035%
$ 1.4m
Carin Barth
Independent Director of Enterprise Products Holdings LLC4.83yrsUS$170.00k0.0026%
$ 1.1m
William Montgomery
Independent Director of Enterprise Products Holdings LLC4.83yrsUS$170.00k0.0024%
$ 972.5k
Edwin Smith
Advisory Director of Enterprise Products Holdings LLC0.58yrUS$150.00kno data
Larry Casey
Advisory Director of Enterprise Products Holdings LLC0.58yrUS$150.00kno data

4.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: EPD's board of directors are considered experienced (4.8 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.


Top Shareholders

Company Information

Enterprise Products Partners L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enterprise Products Partners L.P.
  • Ticker: EPD
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$40.022b
  • Shares outstanding: 2.19b
  • Website: https://www.enterpriseproducts.com

Location

  • Enterprise Products Partners L.P.
  • 1100 Louisiana Street
  • 10th Floor
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPDNYSE (New York Stock Exchange)YesCommon UnitsUSUSDJul 1998
EPDDB (Deutsche Boerse AG)YesCommon UnitsDEEURJul 1998
0S23LSE (London Stock Exchange)YesCommon UnitsGBUSDJul 1998

Biography

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 oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 00:22
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.