Energy Transfer Partners Is Fundamentally Strong $ETP

Energy Transfer Partners Is Fundamentally Strong $ETP

With the fluctuation in the markets and the price of oil it is more important than ever to focus on the fundamentals, but what to look for?  Well we a company and some of the reasons it could be a good investment.  When making decisions here are a few things we consider important before your final decision.

We are going to look at Energy transfer partners (ETP) today. We will examine it from a fundamental and technical perspective. In general, investors should select a company based on its quarterly earnings growth rates, profitability margins, payout ratio, quarterly revenue growth rates, current ratio, etc. in contrast to focusing only on the yield. Before taking a look at Energy transfer partners, we put it through the following selection process and it meets and exceeded all the listed requirements.

The selection process

  1. A profit margin of 20% or higher
  2. Sales should be trending upwards for the past five years
  3. 3-5 year Projected growth rate of 10% or higher
  4. A five year expected PEG ratio that is below the industry average of 2.76. Energy transfer has five year expected PEG of 1.43
  5. Interest coverage ratio of 3.00 or higher
  6. A trailing P/E that is significantly below the industry average of 22.44. Energy transfer partners has a trailing P/E of 9.07

Points of interest

The company has a splendid yield of 8.4%, a decent profit margin of 24.6% and the stock has a projected growth rate of 90% according to dailyfinance.com. Fastgraphs.us has an estimated earnings growth rate of 17.9%. Zacks.com has an EPS estimate of $1.77 for 2013, which represents an increase of 84% over its current EPS estimate of $0.96 for 2012.

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This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Envestor First and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

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