Enterprise Products Partners L.P. Common Stock (EPD)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Generates $22 million in annual free cash flow (0.0% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 19.5% above cost of capital
• Attractive 5.8% dividend yield providing steady income returns

Concerns

• Revenue declining at 2.9% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Enterprise Products Partners L.P. Common Stock is a large-cap energy company valued at $81.2 billion. The business generates $52.6 billion in annual revenue with a 3.1% net margin and $22 million in free cash flow. From a quality standpoint, Enterprise shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 1.3 warrants caution. On valuation, the stock is attractively valued at 14.2x earnings, with trades above its Graham Number with a negative 31% margin. Growth dynamics show revenue growing at -2.9% and profit growth of 1.5%. The 5.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Enterprise's consistent 20% ROE at just 14x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $22 million in annual free cash flow (0.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Sluggish -3% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer