Energy Transfer Equity LP

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ETE : NYSE : Basic Materials
$18.66 | %
Today's Range: 18.57 - 18.825
Avg. Daily Volume: 4507800.0
04/28/17 - 4:02 PM ET

Financial Analysis


ENERGY TRANSFER EQUITY LP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ENERGY TRANSFER EQUITY LP has weak liquidity. Currently, the Quick Ratio is 0.58 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 81.75% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)10803.08777.0
EBITDA ($mil)1375.01123.0
EBIT ($mil)761.0575.0
Net Income ($mil)233.0314.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)483.0606.0
Total Assets ($mil)79011.071189.0
Total Debt ($mil)44052.036968.0
Equity ($mil)-1694.0-932.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin14.7514.46
EBITDA Margin12.7212.79
Operating Margin7.046.55
Sales Turnover0.470.55
Return on Assets1.251.67
Return on Equity0.00.0
Debt Q4 FY16 Q4 FY15
Current Ratio0.961.1
Debt/Capital1.041.03
Interest Expense360.0481.0
Interest Coverage2.111.2


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1046.951046.92
Div / share0.290.29
EPS0.210.3
Book value / share-1.62-0.89
Institutional Own % n/a n/a
Avg Daily Volume4350077.07107055.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 145.46 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 24.92. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. 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, ENERGY TRANSFER EQUITY 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
ETE 20.03 Peers 145.46   ETE 5.71 Peers 11.69

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

ETE is trading at a significant discount to its peers.

 

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.

ETE 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
ETE 13.40 Peers 26.05   ETE 0.42 Peers 0.64

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

ETE is trading at a significant discount to its peers.

 

Discount. 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.

ETE trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ETE NM Peers 38.31   ETE -16.97 Peers 41.17

Neutral. 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.

ETE's P/B is negative making this valuation measure meaningless.

 

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

However, ETE 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
ETE 0.52 Peers 2.53   ETE -4.03 Peers -9.44

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.

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

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ETE has a sales growth rate that significantly exceeds its peers.

 

 

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