Energy Transfer Equity LP

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ETE : NYSE : Basic Materials
$16.16 | %
Today's Range: 15.16 - 16.2
Avg. Daily Volume: 6361000.0
06/23/17 - 4:02 PM ET

Financial Analysis


ENERGY TRANSFER EQUITY LP's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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 0.63 which 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 greatly increased by 31.96% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)11247.07695.0
EBITDA ($mil)1386.01263.0
EBIT ($mil)725.0701.0
Net Income ($mil)239.0312.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)370.0807.0
Total Assets ($mil)80997.072765.0
Total Debt ($mil)42975.038331.0
Equity ($mil)-1147.0-1686.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin14.0718.6
EBITDA Margin12.3216.41
Operating Margin6.459.11
Sales Turnover0.510.51
Return on Assets1.131.67
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio1.050.98
Debt/Capital1.031.05
Interest Expense534.0554.0
Interest Coverage1.361.27


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1079.11044.8
Div / share0.290.29
EPS0.210.3
Book value / share-1.06-1.61
Institutional Own % n/a n/a
Avg Daily Volume6106377.04968284.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 51.24 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 25.73. 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 18.99 Peers 51.24   ETE 5.07 Peers 14.91

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 9.06 Peers 23.97   ETE 1.14 Peers 0.57

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ETE NM Peers 81.35   ETE -27.59 Peers 98.97

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 0.42 Peers 2.16   ETE 10.61 Peers 6.96

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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