Enterprise Products Partners L.P. (EPD)
Valuation Overview•Is Enterprise Products Partners L.P. Overvalued or Undervalued?
Commands a peer premium multiple, but this multiple is justified by a strong intrinsic cash flow value.
Fragile underlying quality score of 42/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is broadly bullish, projecting solid upside with steady expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
EPD demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-3.3% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 13.5%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $13.8B | -6.4% | -3.3% | +14.1% | +6.9% | |
| EBITDA | $2.7B | — | +2.4% | — | — | |
| Net Income | $1.6B | -1.5% | +1.9% | — | +8.7% | |
| EPS (Diluted) | $0.75 | -1.1% | +2.1% | +9.2% | +7.8% | |
| Free Cash Flow | $1.2B | -17.0% | -21.3% | +2.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 13.6% | 13.3% | 13.2% | 14.7% |
| Operating Margin | 13.5% | 13.4% | 13.4% | 14.8% |
| Net Margin | 11.0% | 10.9% | 10.7% | 11.3% |
| FCF Margin | 5.6% | 6.9% | 9.3% | 7.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.71 | $0.68 | -4.8% | ||
| Q1'26 | $0.69 | $0.75 | +8.7% | ||
| Q4'25 | $0.65 | $0.61 | -6.3% | ||
| Q3'25 | $0.65 | $0.66 | +2.3% | ||
| Q2'25 | $0.70 | $0.64 | -9.2% | ||
| Q1'25 | $0.70 | $0.74 | +5.6% | ||
| Q4'24 | $0.66 | $0.65 | -1.5% | ||
| Q3'24 | $0.66 | $0.64 | -3.0% |
Total return is +24.6% (1Y), lagging the benchmark by -0.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +17.2% | +7.9% | — |
| 1Y | +24.6% | -0.3% | +7.0% |
| 3YCAGR | +18.0% | -1.6% | +24.3% |
| 5YCAGR | +14.3% | +1.2% | +42.1% |
| 10YCAGR | +7.0% | -6.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Enterprise Products Partners L.P. (EPD) valuation, health, and returns.
Enterprise Products Partners L.P. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. undervalued (implying +43.9% upside to DCF intrinsic value of $52.68)
Enterprise Products Partners L.P. has multiple valuation anchors: DCF Intrinsic Value: $52.68 | Peer Relative Fair Value: $30.47 | Wall Street Analyst Target: $39.25 (implying +7.2% upside). A convergence of these signals offers higher conviction.
Enterprise Products Partners L.P. displays fair financial health with a composite quality score of 42/100, supported by a Altman Z-Score of 1.4 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 8.3%.
Enterprise Products Partners L.P. pays a 5.8% dividend yield, covered by a 80% payout ratio with 28 years of growth, supplemented by a 0.4% buyback yield.
Enterprise Products Partners L.P.'s current growth trajectory is Decelerating. The company achieved -6.4% 1Y revenue growth and -1.1% 1Y EPS growth, compared to its 3Y revenue CAGR of -3.3%.
Wall Street consensus is Buy based on 45 analysts, beating EPS expectations in 33% of recent quarters with a -1-quarter streak. The consensus price target represents a +7.2% change from current levels.
Investment risks for Enterprise Products Partners L.P. include: -8.4% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of -0.12x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.