Enterprise Stock Story

EPD

Stock

USD 27.13 0.02 0.07%

Macroaxis Story

The stock experiences above-average trading activities. Enterprise Products Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 6.29 Billion. The current year Market Capitalization is expected to grow to about 56.2 B, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 7.4 B. As many millenniums are trying to avoid energy space, it makes sense to digest Enterprise Products Partners a little further and try to understand its current market patterns.

Published over a month ago

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Is Enterprise Products (NYSE:EPD) outlook still optimistic based on the latest debt level?

The company has 29.91 B in debt with debt to equity (D/E) ratio of 1.13, which is OK given its current industry classification.

The firm shows a Beta (market volatility) of 0.6518, which means possible diversification benefits within a given portfolio. Let's try to break down what Enterprise's beta means in this case. As returns on the market increase, Enterprise Products returns are expected to increase less than the market. However, during the bear market, the loss on holding Enterprise Products will be expected to be smaller as well. Even though it is essential to pay attention to Enterprise Products historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards predicting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Enterprise Products Partners exposes twenty-one different technical indicators, which can help you to evaluate its performance. Enterprise Products has an expected return of -0.0464%. Please be advised to confirm Enterprise Products treynor ratio, as well as the relationship between the potential upside and expected short fall to decide if Enterprise Products performance from the past will be repeated at some point in the near future.

Is Enterprise Products (NYSE:EPD) outlook still optimistic based on the latest debt level?

Enterprise Products financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Enterprise Products, including all of Enterprise Products's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Enterprise Products assets, the company is considered highly leveraged. Understanding the composition and structure of overall Enterprise Products debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding Enterprise Total Liabilities

Enterprise Products liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Enterprise Products has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Enterprise Products balance sheet include debt obligations and money owed to different Enterprise Products vendors, workers, and loan providers. Below is the chart of Enterprise short long-term liabilities accounts currently reported on its balance sheet.

You can use Enterprise Products Partners financial leverage analysis tool to get a better grip on understanding its financial position

How important is Enterprise Products's Liquidity

Enterprise Products financial leverage refers to using borrowed capital as a funding source to finance Enterprise Products Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Enterprise Products financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Enterprise Products's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Enterprise Products, but it might be worth checking our own buy vs. sell analysis

Going after Enterprise Financials

The small dip in market price for the last few months could raise concerns from shareholders as the firm is trading at a share price of 24.63 on very low momentum in volume. The company executives did not add much value to Enterprise Products investors in June. However, diversifying your holdings with Enterprise Products Partners or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.66. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Asset Breakdown

54 B

Assets Non Current

Goodwill

11.1 B

Current Assets

	Total Assets	65.18 Billion
	Current Assets	11.13 Billion
	Assets Non Current	54.04 Billion
	Goodwill	8.96 Billion

Enterprise is expecting lower volatility in August

The kurtosis is down to 1.07 as of today. Enterprise Products Partners exhibits very low volatility with skewness of -0.42 and kurtosis of 1.07. However, we advise investors to further study Enterprise Products Partners technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Enterprise Products' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Enterprise Products' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Enterprise Products Implied Volatility

Enterprise Products' implied volatility exposes the market's sentiment of Enterprise Products Partners stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Enterprise Products' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Enterprise Products stock will not fluctuate a lot when Enterprise Products' options are near their expiration.

The Current Takeaway on Enterprise Products Investment

When is the right time to buy or sell Enterprise Products Partners? Buying stocks such as Enterprise Products isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.

To conclude, as of the 2nd of July 2022, we believe that Enterprise Products is currently undervalued with close to average chance of bankruptcy in the next two years. Our present 90 days buy vs. sell advice on the firm is Strong Buy.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Enterprise Products Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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