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
- A profit margin of 20% or higher
- Sales should be trending upwards for the past five years
- 3-5 year Projected growth rate of 10% or higher
- 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
- Interest coverage ratio of 3.00 or higher
- 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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