Last Updated: 13 Sep 2024
Executive Summary
Energy Transfer LP (ET) is a leading energy services company with a market capitalization of $54.76 billion. The company has a strong financial position, with an EBITDA of $13.86 billion and a profit margin of 5.34%. ET's dividend yield of 0.08% is slightly below the industry average, but its EPS of $1.19 and revenue per share of $25.41 are both above average. The company's trailing PE ratio of 13.45 is in line with the industry average, and its forward PE ratio of 8.78 is attractive. ET's technical analysis indicates that the stock is currently in a downtrend, but the long-term outlook is positive. Analyst recommendations are mixed, with seven analysts rating the stock as a strong buy, eight rating it as a buy, one rating it as a hold, and zero rating it as a sell or strong sell.
Company Overview
Energy Transfer LP is a Dallas-based energy services company that offers a range of services, including natural gas transmission, storage, and distribution; crude oil transportation and storage; and propane distribution. The company has a vast network of pipelines and storage facilities that span the United States and Canada. ET's customers include utilities, power generators, industrial companies, and residential and commercial customers.
Fundamental Analysis
ET's financial performance has been strong in recent years. The company's revenue has grown by an average of 5% per year over the past five years, and its EPS has grown by an average of 10% per year over the same period. ET's profit margin has also improved in recent years, from 4.5% in 2017 to 5.34% in 2023. The company's balance sheet is also strong, with a debt-to-equity ratio of 0.54.
ET's valuation metrics are attractive. The company's trailing PE ratio of 13.45 is in line with the industry average, and its forward PE ratio of 8.78 is attractive. ET's price-to-sales ratio of 0.655 is also below the industry average.
Technical Analysis
ET's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for ET is mixed. The stock's technical analysis indicates that the stock is currently in a downtrend, but the company's fundamentals are strong. The stock's valuation metrics are also attractive. Overall, the short-term outlook for ET is neutral.
Long Term Outlook
The long-term outlook for ET is positive. The company's strong financial performance and attractive valuation metrics suggest that the stock has the potential to generate strong returns over the long term. The company's vast network of pipelines and storage facilities also gives it a competitive advantage in the energy services market.
Analyst Recommendations
Analyst recommendations for ET are mixed. Seven analysts rate the stock as a strong buy, eight rate it as a buy, one rates it as a hold, and zero rate it as a sell or strong sell. The average analyst target price for ET is $19.22, which represents a potential upside of 20% from the current price.
