Energy Transfer LP Common Units (ET)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $2.2 billion in annual free cash flow (3.4% yield on market cap)
• Solid return on equity of 11.9% above cost of capital
• Revenue growth of 29.6% demonstrates strong top-line momentum
• Attractive 7.0% dividend yield providing steady income returns
• Established organization with 22,311 employees providing operational scale

Concerns

• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Energy Transfer LP Common Units is a large-cap energy company valued at $65.5 billion. The business generates $85.5 billion in annual revenue with a 1.0% net margin and $2.2 billion in free cash flow. From a quality standpoint, Energy shows distressed Altman Z-Score of 0.7 warrants caution and adequate 12% ROE. On valuation, the stock is reasonably priced at 15.8x earnings, with trades above its Graham Number with a negative 15% margin. Growth dynamics show revenue growing at 29.6% and profit growth of -13.8%. The 7.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Energy's 30% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. With $2.2 billion in annual free cash flow (3.4% 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. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

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