Enbridge Energy Partners LP

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EEP : NYSE : Basic Materials
$14.43 | %
Today's Range: 14.28 - 14.52
Avg. Daily Volume: 1379700.0
08/18/17 - 4:02 PM ET

Financial Analysis


ENBRIDGE ENERGY PRTNRS -LP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. ENBRIDGE ENERGY PRTNRS -LP has very weak liquidity. Currently, the Quick Ratio is 0.39 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 62.12% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)596.5621.3
EBITDA ($mil)368.3427.4
EBIT ($mil)260.0322.5
Net Income ($mil)106.5107.4


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)123.7155.8
Total Assets ($mil)14667.418913.5
Total Debt ($mil)7299.98513.8
Equity ($mil)1735.54582.3


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin88.8790.39
EBITDA Margin61.7468.79
Operating Margin43.5951.91
Sales Turnover0.240.19
Return on Assets-0.561.84
Return on Equity-6.47.55
Debt Q2 FY17 Q2 FY16
Current Ratio0.430.39
Debt/Capital0.810.65
Interest Expense102.893.3
Interest Coverage2.533.46


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)419.97348.04
Div / share0.350.58
EPS0.270.21
Book value / share4.1313.17
Institutional Own % n/a n/a
Avg Daily Volume1380740.01542672.0

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. Conducting a second comparison, its price-to-book ratio of 3.59 indicates a premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 541.69. The price-to-sales ratio is 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 64.34   EEP 6.10 Peers 15.89

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 14.28 Peers 34.73   EEP NA Peers 0.55

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

EEP is trading at a significant discount 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 3.59 Peers 541.69   EEP -466.66 Peers 154.68

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 1.75 Peers 2.03   EEP -2.27 Peers 19.70

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 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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