Enbridge Energy Partners LP

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EEP : NYSE : Basic Materials
$18.09 | %
Today's Range: 17.86 - 18.19
Avg. Daily Volume: 1487500.0
02/24/17 - 4:01 PM ET

Financial Analysis


ENBRIDGE ENERGY PRTNRS -LP's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ENBRIDGE ENERGY PRTNRS -LP has very weak liquidity. Currently, the Quick Ratio is 0.25 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 19.95% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1250.81136.7
EBITDA ($mil)423.8400.7
EBIT ($mil)277.3259.3
Net Income ($mil)104.030.5


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)133.3185.7
Total Assets ($mil)18110.118815.8
Total Debt ($mil)8634.48069.9
Equity ($mil)3976.44967.6


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin50.5458.86
EBITDA Margin33.8835.25
Operating Margin22.1722.81
Sales Turnover0.250.27
Return on Assets-0.371.23
Return on Equity-4.082.65
Debt Q4 FY16 Q4 FY15
Current Ratio0.360.35
Debt/Capital0.680.62
Interest Expense125.2119.5
Interest Coverage2.212.17


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)351.89343.32
Div / share0.580.58
EPS0.08-0.14
Book value / share11.314.47
Institutional Own % n/a n/a
Avg Daily Volume1464160.0979896.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 1.62 indicates a discount versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 28.52. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ENBRIDGE ENERGY PRTNRS -LP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EEP NM Peers 146.66   EEP 4.54 Peers 12.37

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

EEP's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EEP is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EEP 25.72 Peers 32.65   EEP NA Peers 0.78

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

EEP is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EEP 1.62 Peers 28.52   EEP -332.00 Peers -0.72

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

EEP is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, EEP is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EEP 1.43 Peers 2.64   EEP -12.91 Peers -12.00

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

EEP is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

EEP significantly trails its peers on the basis of sales growth

 

 

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