Enterprise Products Partners LP

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EPD : NYSE : Basic Materials
$27.28 | %
Today's Range: 27.18 - 27.71
Avg. Daily Volume: 4,672,800
09/23/16 - 4:01 PM ET

Financial Analysis


ENTERPRISE PRODS PRTNRS -LP's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. ENTERPRISE PRODS PRTNRS -LP has weak liquidity. Currently, the Quick Ratio is 0.50 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.94% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)5617.87092.5
EBITDA ($mil)1148.91152.4
EBIT ($mil)767.6744.9
Net Income ($mil)558.5551.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)486.1597.2
Total Assets ($mil)51400.848159.4
Total Debt ($mil)22797.522293.0
Equity ($mil)21724.220125.6


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin20.716.57
EBITDA Margin20.4516.24
Operating Margin13.6610.5
Sales Turnover0.450.77
Return on Assets4.965.26
Return on Equity11.7512.61
Debt Q2 FY16 Q2 FY15
Current Ratio0.851.11
Debt/Capital0.510.53
Interest Expense290.5276.1
Interest Coverage2.642.7


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)2092.332003.17
Div / share0.40.38
EPS0.270.28
Book value / share10.3810.05
Institutional Own % n/a n/a
Avg Daily Volume4586831.04947725.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 77.95 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 24.84. To use another comparison, its price-to-book ratio of 2.50 indicates valuation on par with the S&P 500 average of 2.78 and a significant discount versus the industry average of 14.73. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, ENTERPRISE PRODS 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
EPD 20.77 Peers 77.95   EPD 13.51 Peers 10.77

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

EPD is trading at a significant discount to its peers.

 

Premium. 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.

EPD is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EPD 18.68 Peers 45.38   EPD NM Peers 3.86

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

EPD 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.

EPD's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EPD 2.50 Peers 14.73   EPD -4.59 Peers -229.88

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.

EPD is trading at a significant discount to its peers.

 

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

EPD is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EPD 2.35 Peers 2.51   EPD -37.75 Peers -26.22

Average. 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.

EPD is trading at a valuation on par with its industry on this measurement.

 

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

EPD significantly trails its peers on the basis of sales growth

 

 

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