The firm said it downgraded the natural gas business' ratings based on a valuation call.
TheStreet Ratings team rates ENTERPRISE PRODS PRTNRS -LP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENTERPRISE PRODS PRTNRS -LP (EPD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 18.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ENTERPRISE PRODS PRTNRS -LP has improved earnings per share by 10.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ENTERPRISE PRODS PRTNRS -LP increased its bottom line by earning $2.82 versus $2.71 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.82).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 13.5% when compared to the same quarter one year prior, going from $615.50 million to $698.90 million.
- Net operating cash flow has increased to $1,499.30 million or 17.58% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.28%.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: EPD Ratings Report