Enterprise Products Partners LP

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EPD : NYSE : Basic Materials
$26.07 -0.40 | -1.49%
Today's Range: 26.01 - 26.71
Avg. Daily Volume: 4,767,900
10/27/16 - 4:02 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
Interest Expense290.5276.1
Interest Coverage2.642.7

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)2092.332003.17
Div / share0.40.38
Book value / share10.3810.05
Institutional Own % n/a n/a
Avg Daily Volume4561490.04325262.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 51.38 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 24.64. To use another comparison, its price-to-book ratio of 2.61 indicates valuation on par with the S&P 500 average of 2.73 and a significant discount versus the industry average of 15.68. The current price-to-sales ratio is well 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EPD 21.66 Peers 51.38   EPD 14.09 Peers 11.23

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
EPD 19.41 Peers 48.17   EPD NM Peers 1.09

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EPD 2.61 Peers 15.68   EPD -4.59 Peers -225.99

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EPD 2.45 Peers 2.65   EPD -37.75 Peers -26.39

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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