Energy Transfer LP () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Plains All American Pipeline LP

ONEOK, Inc.

MPLX LP

Western Midstream Partners LP

Energy Transfer LP

Cheniere Energy, Inc.

Enterprise Products Partners LP

Antero Midstream Corp.

Kinder Morgan, Inc.

The Williams Cos., Inc.

EnLink Midstream LLC

Why is Energy Transfer LP ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.03%

Flat results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at 176.31 %
DEBTORS TURNOVER RATIO(HY) Lowest at 8.15 times
NET SALES(Q) Lowest at USD 19,242 MM

With ROCE of 9.45%, it has a very attractive valuation with a 1.28 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.49%, its profits have risen by 4.3% ; the PEG ratio of the company is 4.1

High Institutional Holdings at 35.5%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -11.49% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Energy Transfer LP should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Energy Transfer LP for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Energy Transfer LP

-11.49%

0.26

27.05%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.77%

EBIT Growth (5y)

7.53%

EBIT to Interest (avg)

3.22

Debt to EBITDA (avg)

4.07

Net Debt to Equity (avg)

1.68

Sales to Capital Employed (avg)

0.92

Tax Ratio

6.96%

Dividend Payout Ratio

99.28%

Pledged Shares

Institutional Holding

35.50%

ROCE (avg)

10.03%

ROE (avg)

19.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.74

EV to EBIT

13.51

EV to EBITDA

8.50

EV to Capital Employed

1.28

EV to Sales

1.47

PEG Ratio

4.10

Dividend Yield

ROCE (Latest)

9.45%

ROE (Latest)

17.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 11,196 MM

ROCE(HY)

Highest at 13.73%

DIVIDEND PER SHARE(HY)

Highest at USD 8.15

RAW MATERIAL COST(Y)

Fallen by -7.56% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 19.81 %

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 176.31 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.15 times

NET SALES(Q)

Lowest at USD 19,242 MM

INTEREST(Q)

Highest at USD 865 MM

Here's what is working for Energy Transfer LP

Dividend per share

Highest at USD 8.15 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 11,196 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit Margin

Highest at 19.81 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -7.56% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 1,384 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Energy Transfer LP

Net Sales

Lowest at USD 19,242 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Interest

Highest at USD 865 MM

in the last five periods and Increased by 6.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 176.31 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 8.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio