Energy Transfer Equity LP

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ETE : NYSE : Basic Materials
$16.59 -0.13 | -0.78%
Today's Range: 16.42 - 16.87
Avg. Daily Volume: 13,233,300
07/29/16 - 4:00 PM ET

Financial Analysis


ENERGY TRANSFER EQUITY LP's gross profit margin for the first quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. 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 338.47% 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 FY16 Q1 FY15
Net Sales ($mil)7682.09644.0
EBITDA ($mil)1263.01110.0
EBIT ($mil)701.0617.0
Net Income ($mil)312.0284.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)807.01863.0
Total Assets ($mil)72765.067004.0
Total Debt ($mil)38331.033427.0
Equity ($mil)-1686.0707.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin18.4713.12
EBITDA Margin16.4411.5
Operating Margin9.136.4
Sales Turnover0.510.75
Return on Assets1.671.11
Return on Equity0.0100.28
Debt Q1 FY16 Q1 FY15
Current Ratio0.981.27
Debt/Capital1.050.98
Interest Expense484.0403.0
Interest Coverage1.451.53


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)1044.81078.6
Div / share0.290.23
EPS0.30.26
Book value / share-1.610.66
Institutional Own % n/a n/a
Avg Daily Volume1.4384758E72.6456344E7

Valuation


HOLD. ENERGY TRANSFER EQUITY LP's P/E ratio indicates a significant discount compared to an average of 70.76 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P 500 average of 25.05. 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 14.55 Peers 70.76   ETE 5.05 Peers 306.30

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 12.14 Peers 39.26   ETE 16.17 Peers 2.07

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 11.73   ETE 78.46 Peers -202.73

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.

 

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

ETE 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
ETE 0.48 Peers 2.43   ETE -26.26 Peers -25.78

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.

 

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

ETE significantly trails its peers on the basis of sales growth

 

 

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