Enterprise Products Partners L.P. (NYSE: EPD)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0001061219
Market Cap 69.94 Bn
P/B 2.39
P/E 12.09
P/S 1.32
ROIC (Qtr) 11.07
Div Yield % 8.44
Rev 1y % (Qtr) -12.72
Total Debt (Qtr) 33.58 Bn
Debt/Equity (Qtr) 1.15

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 8.47B provides exceptional 141.18x coverage of minority interest expenses 60M, showing strong core operations.
  • Strong operating cash flow of 8.47B provides 34.02x coverage of SG&A expenses 249M, showing efficient operational cost management.
  • Tangible assets of 67.90B provide robust 44.27x coverage of other current liabilities 1.53B, indicating strong asset backing.
  • Operating cash flow of 8.47B fully covers other non-current liabilities 1.61B by 5.27x, showing strong long-term stability.
  • Operating cash flow of 8.47B provides strong 12.93x coverage of tax liabilities 655M, showing excellent fiscal position.

Bear case

  • Operating cash flow of 8.47B barely covers its investment activities of (6.26B), with a coverage ratio of -1.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 432M against inventory of 4.16B, the 0.10 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 8.47B provides thin coverage of dividend payments of (4.64B) with a -1.83 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 432M provide limited coverage of acquisition spending of (857M), which is -0.50x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High financing cash flow of (3.46B) relative to working capital of (1.81B), which is 1.91x suggests concerning dependence on external funding for operational needs.

Consolidation Items Breakdown of Revenue (2024)

Major Customers Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 100.05 Bn 24.60 2.15 75.15 Bn
2 WMB Williams Companies, Inc. 73.60 Bn 31.09 6.40 27.99 Bn
3 EPD Enterprise Products Partners L.P. 69.94 Bn 12.09 1.32 33.58 Bn
4 KMI Kinder Morgan, Inc. 60.62 Bn 22.23 3.69 32.58 Bn
5 ET Energy Transfer LP 58.05 Bn 13.46 0.73 63.97 Bn
6 TRP Tc Energy Corp 55.97 Bn 22.78 5.27 44.47 Bn
7 MPLX Mplx Lp 54.03 Bn 11.23 4.22 25.92 Bn
8 OKE Oneok Inc /New/ 44.55 Bn 13.34 1.41 33.73 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.31 3.39
EV to Cash from Ops. EV/CFO 11.99 7.77
EV to Debt EV to Debt 3.03 -68.56
EV to EBIT EV/EBIT 14.11 12.77
EV to EBITDA EV/EBITDA 11.15 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF 32.84 13.20
EV to Market Cap EV to Market Cap 1.45 2.49
EV to Revenue EV/Rev 1.92 4.48
Price to Book Value [P/B] P/B 2.39 94.01
Price to Earnings [P/E] P/E 12.09 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.25 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 80.80 72.05
Dividend per Basic Share Div per Share (Qtr) 2.16 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 151.26 32.66
Interest Coverage Int. cover (Qtr) 5.25 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -19.59 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -74.18 16,113.89
Dividend Growth (1y) % Div 1y % (Qtr) 3.85 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -0.22 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.77 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) -0.50 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) -1.30 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) -0.38 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) -14.70 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.48 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.68 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.33 0.21
Cash Ratio Cash Ratio (Qtr) 0.03 0.81
Current Ratio Curr Ratio (Qtr) 0.88 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 1.15 1.11
Interest Cover Ratio Int Coverage (Qtr) 5.25 5.11
Times Interest Earned Times Interest Earned (Qtr) 5.25 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.90 35.86
EBIT Margin % EBIT Margin % (Qtr) 13.58 27.76
EBT Margin % EBT Margin % (Qtr) 10.99 17.28
Gross Margin % Gross Margin % (Qtr) 13.40 48.56
Net Profit Margin % Net Margin % (Qtr) 10.90 15.36