Enbridge Energy Partners LP

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EEP : NYSE : Basic Materials
$23.8 up 0.31 | 1.3%
Today's Range: 23.26 - 23.92
Avg. Daily Volume: 949500.0
12/09/16 - 9:34 AM ET

Financial Analysis


ENBRIDGE ENERGY PRTNRS -LP's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. ENBRIDGE ENERGY PRTNRS -LP has very weak liquidity. Currently, the Quick Ratio is 0.16 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 22.90% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1120.61267.7
EBITDA ($mil)428.3391.7
EBIT ($mil)279.7254.8
Net Income ($mil)-382.7106.7


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)56.4156.7
Total Assets ($mil)18100.018406.9
Total Debt ($mil)8508.47169.8
Equity ($mil)3975.75156.9


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin57.3253.12
EBITDA Margin38.2230.89
Operating Margin24.9620.1
Sales Turnover0.240.33
Return on Assets-0.782.4
Return on Equity-5.936.57
Debt Q3 FY16 Q3 FY15
Current Ratio0.30.35
Debt/Capital0.680.58
Interest Expense123.098.8
Interest Coverage2.272.58


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)350.03341.78
Div / share0.580.58
EPS-1.310.07
Book value / share11.3615.09
Institutional Own % n/a n/a
Avg Daily Volume989927.01210398.0

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 2.08 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 23.39. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below 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 40.72   EEP 8.86 Peers 13.44

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 28.43 Peers 57.50   EEP NA Peers 2.14

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 2.08 Peers 23.39   EEP -425.00 Peers -250.11

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 1.89 Peers 2.76   EEP -28.18 Peers -20.48

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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