NGL ENERGY PARTNERS LP Common Units representing Limited Partner Interests (NGL)

FairStock Score: 33/100 — RISKY

Key Financials

Strengths

• Generates $224 million in annual free cash flow (12.4% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 19.1% above cost of capital

Concerns

• High leverage at 5.19x debt-to-equity increases financial risk and interest expense burden
• Revenue declining at 7.4% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

NGL ENERGY PARTNERS LP Common Units representing Limited Partner Interests is a micro-cap energy company valued at $1.8 billion. The business generates $3.5 billion in annual revenue with a 0.3% net margin and $224 million in free cash flow. From a quality standpoint, NGL shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is 2.5% FCF yield. Growth dynamics show revenue growing at -7.4% and profit growth of 249.3%. Our composite FairStock Score of 33/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $224 million in annual free cash flow (12.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 5.2x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. 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