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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
18.5%
Sector: 9.9%
Dividend Analysis audit
HIGH YIELD
6.96%
Trailing Yield
$6.96
Per $100 Invested
High yield — monitor payout sustainability closely.
Est. Payout Ratio
101%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) receives a "Hold" rating with a composite score of 53.2/100, ranked #136 out of 4446 stocks. Key factor scores: Quality 50/100, Value 70/100, Momentum 53/100. This is quantitative analysis only — not investment advice.
ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ENTERPRISE PRODUCTS PARTNERS L.P. Do?
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates 19 natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of 255 tractor-trailer tank trucks that are used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related marketing activities; butane isomerization complex and related deisobutanizer operations; and octane enhancement and high purity isobutylene production facilities. It also operates refined products pipelines and terminals; and ethylene export terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas. ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) is classified as a large-cap stock in the Utilities sector. The company is led by CEO W. Randall Fowler and employs approximately 6,910 people, headquartered in Houston, Texas. With a market capitalization of $80.9B, EPD is one of the prominent companies in the Utilities sector.
As of April 2026, ENTERPRISE PRODUCTS PARTNERS L.P. receives a Hold rating with a composite score of 53.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.EPD ranks #136 out of 4,446 stocks in our coverage universe. Within the Utilities sector, ENTERPRISE PRODUCTS PARTNERS L.P. ranks #13 of 112 stocks, placing it in the top quartile of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EPD Stock Price and 52-Week Range
ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) currently trades at $37.45. The stock lost $0.07 (0.2%) in the most recent trading session. The 52-week high for EPD is $37.93, which means the stock is currently trading -1.3% from its annual peak. The 52-week low is $27.77, putting the stock 34.9% above its annual trough. Recent trading volume was 2.5M shares, reflecting moderate market activity.
Is EPD Overvalued or Undervalued? — Valuation Analysis
ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) carries a value factor score of 70/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 14.56x, compared to the Utilities sector average of 23.47x — a discount of 38%. The price-to-book ratio stands at 2.69x, versus the sector average of 1.98x. The price-to-sales ratio is 1.56x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, EPD trades at 11.71x EV/EBITDA, versus 4.75x for the sector.
Based on these multiples, ENTERPRISE PRODUCTS PARTNERS L.P. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 18.5%, compared to the Utilities sector average of 9.9%, which is within a healthy range. Return on assets (ROA) comes in at 7.2% versus the sector average of 3.1%.
On a margin basis, ENTERPRISE PRODUCTS PARTNERS L.P. reports gross margins of 26.4%, compared to 53.1% for the sector. The operating margin is 13.5% (sector: 21.5%). Net profit margin stands at 10.9%, versus 12.8% for the average Utilities stock. Revenue growth is running at -10.8% on a trailing basis, compared to 20.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
EPD Debt, Balance Sheet, and Financial Health
ENTERPRISE PRODUCTS PARTNERS L.P. has a debt-to-equity ratio of 155.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.04x, suggesting adequate working capital coverage. Total debt on the balance sheet is $33.58B. Cash and equivalents stand at $206M.
EPD has a beta of 0.34, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ENTERPRISE PRODUCTS PARTNERS L.P. is 93/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
ENTERPRISE PRODUCTS PARTNERS L.P. Revenue and Earnings History — Quarterly Trend
In TTM 2026, ENTERPRISE PRODUCTS PARTNERS L.P. reported revenue of $52.58B. Net income for the quarter was $5.65B. Gross margin was 26.4%. Operating income came in at $7.02B.
In FY 2025, ENTERPRISE PRODUCTS PARTNERS L.P. reported revenue of $52.60B. Net income for the quarter was $5.88B. Gross margin was 26.7%. Revenue grew -6.4% year-over-year compared to FY 2024. Operating income came in at $7.27B.
In Q3 2025, ENTERPRISE PRODUCTS PARTNERS L.P. reported revenue of $12.02B. Net income for the quarter was $1.36B. Gross margin was 28.5%. Revenue grew -12.7% year-over-year compared to Q3 2024. Operating income came in at $1.69B.
In Q2 2025, ENTERPRISE PRODUCTS PARTNERS L.P. reported revenue of $11.36B. Net income for the quarter was $1.45B. Gross margin was 30.5%. Revenue grew -15.7% year-over-year compared to Q2 2024. Operating income came in at $1.79B.
Over the past 8 quarters, ENTERPRISE PRODUCTS PARTNERS L.P. has demonstrated a growth trajectory, with revenue expanding from $13.48B to $52.58B. Investors analyzing EPD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EPD Dividend Yield and Income Analysis
ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) currently pays a dividend yield of 7.0%. At this yield, a $10,000 investment in EPD stock would generate approximately $$696.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning EPD offers above-average income for its sector. The net margin of 10.9% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
EPD Momentum and Technical Analysis Profile
ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) has a momentum factor score of 53/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
EPD vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing EPD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EPD vs S&P 500 (SPY) comparison to assess how ENTERPRISE PRODUCTS PARTNERS L.P. stacks up against the broader market across all factor dimensions.
EPD Next Earnings Date
No upcoming earnings date has been announced for ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EPD? — Investment Thesis Summary
ENTERPRISE PRODUCTS PARTNERS L.P. presents a balanced picture with arguments on both sides. The value score of 70/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 93/100) reduces downside risk.
In summary, ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) earns a Hold rating with a composite score of 53.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EPD stock.
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Institutional Research Dossier
ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Enterprise Products Partners L.P. (EPD). While the company exhibits strong stability and attractive valuation multiples relative to the utilities sector, concerns regarding negative free cash flow and declining revenue growth temper our enthusiasm. The partnership's extensive asset base and strategic positioning in the midstream energy sector provide a degree of downside protection, but the current macroeconomic environment and capital allocation decisions warrant a cautious approach.
The primary driver of our Hold rating is the conflicting signals from EPD's financial performance. The partnership's high debt levels and negative free cash flow raise questions about its ability to fund future growth and maintain its distributions without increasing leverage or diluting existing unitholders. While the valuation appears attractive on a relative basis, these financial headwinds suggest that the market is already pricing in some level of risk, making a more bullish stance unwarranted at this time.
Business Strategy & Overview
Enterprise Products Partners L.P. operates as a critical link in the North American energy value chain, providing midstream services for natural gas, NGLs, crude oil, petrochemicals, and refined products. The partnership's business model is predicated on fee-based revenues generated from the transportation, processing, storage, and fractionation of these commodities. This model aims to provide stable and predictable cash flows, insulating the partnership from direct commodity price volatility, although indirect exposure remains through volume fluctuations.
EPD's strategic positioning revolves around owning and operating a vast network of pipelines, processing plants, and storage facilities concentrated in key producing regions, particularly the Permian Basin and the Gulf Coast. This extensive infrastructure provides a competitive advantage by offering producers and consumers a comprehensive suite of midstream services, reducing the need to contract with multiple providers. The partnership continually invests in expanding and upgrading its infrastructure to meet growing demand and enhance operational efficiency.
The company's four operating segments – NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services – are strategically integrated to capture value across the midstream value chain. For example, the NGL Pipelines & Services segment benefits from increased natural gas production, which in turn drives demand for processing and fractionation services. Similarly, the Crude Oil Pipelines & Services segment supports the transportation and storage needs of crude oil producers, while the Petrochemical & Refined Products Services segment caters to the downstream market.
EPD's growth strategy focuses on organic expansion projects, strategic acquisitions, and optimization of its existing asset base. The partnership prioritizes projects that generate attractive returns on invested capital and enhance its competitive position. Acquisitions are typically targeted at complementary assets that can be integrated into EPD's existing network to create synergies and expand its service offerings. A key aspect of their strategy is to maintain a strong balance sheet and financial flexibility to fund future growth opportunities.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-10.8%
Sector: 20.1%
-154% VS SCTR
Economic Moat Analysis
Enterprise Products Partners possesses a Narrow economic moat, primarily derived from its cost advantages and, to a lesser extent, its efficient scale. The partnership's extensive network of pipelines and processing facilities creates a significant barrier to entry for potential competitors. Replicating this infrastructure would require substantial capital investment and regulatory approvals, making it difficult for new entrants to compete effectively.
The cost advantages stem from EPD's scale and operational efficiency. The partnership's large asset base allows it to spread fixed costs over a greater volume of throughput, resulting in lower per-unit operating expenses. Furthermore, EPD's integrated network enables it to optimize its operations and reduce transportation costs, providing a competitive edge over smaller, less integrated players. These cost advantages allow EPD to offer competitive pricing while maintaining healthy margins.
Efficient scale also contributes to EPD's moat. In certain markets, the demand for midstream services may not be sufficient to support multiple large-scale operators. EPD's established presence and extensive infrastructure give it a significant advantage in these markets, making it difficult for new entrants to gain a foothold. This is particularly true in regions with limited pipeline capacity or specialized processing requirements.
However, the moat is not considered Wide due to the presence of other large, well-capitalized midstream companies and the potential for regulatory changes to impact the competitive landscape. While EPD's infrastructure provides a significant advantage, it is not insurmountable, and competitors can still gain market share through strategic acquisitions or the development of new infrastructure projects. Furthermore, changes in government regulations or environmental policies could impact the demand for midstream services and erode EPD's competitive position.
The partnership's ability to maintain and expand its moat will depend on its continued investment in infrastructure, its ability to adapt to changing market conditions, and its success in navigating the regulatory environment. While EPD's existing assets provide a solid foundation, the partnership must remain vigilant in protecting its competitive advantages and pursuing growth opportunities.
Financial Health & Profitability
Enterprise Products Partners' financial health presents a mixed picture. While the partnership boasts a strong balance sheet and attractive profitability metrics relative to the utilities sector, concerns regarding negative free cash flow and declining revenue growth warrant careful consideration. The company's debt-to-equity ratio of 155.00 is comparable to the sector average of 165.00, indicating a moderate level of leverage. However, the partnership's total debt of $33.58 billion is substantial and requires careful management.
The partnership's profitability metrics are generally favorable. The return on equity (ROE) of 18.5% significantly exceeds the sector average of 10.0%, indicating efficient utilization of equity capital. However, the gross margin of 26.4% and operating margin of 13.5% are lower than the sector averages of 53.3% and 21.7%, respectively, suggesting that EPD's cost structure may be less efficient than its peers. The net margin of 10.9% is also slightly below the sector average of 12.8%.
A key concern is the partnership's negative free cash flow of -$2.19 billion. This indicates that EPD is not generating sufficient cash from its operations to cover its capital expenditures and distributions. This shortfall could necessitate increased borrowing or asset sales to fund future growth and maintain its distributions. The trend in revenue growth is also concerning. The company's revenue declined by 10.8% year-over-year, while the sector experienced revenue growth of 20.1%. This suggests that EPD is losing market share or facing headwinds in its core business segments.
Analyzing the quarterly financial history reveals a fluctuating revenue pattern. While gross margins and operating margins have remained relatively stable, revenue has varied significantly from quarter to quarter. This volatility could be attributed to fluctuations in commodity prices, changes in demand for midstream services, or the timing of capital projects. The partnership's current ratio of 1.04 indicates adequate liquidity to meet its short-term obligations.
Overall, EPD's financial health is stable but requires close monitoring. The partnership's strong balance sheet and attractive profitability metrics provide a degree of downside protection, but the negative free cash flow and declining revenue growth are cause for concern. Management must address these issues to ensure the long-term sustainability of the partnership's business model.
Valuation Assessment
Enterprise Products Partners' valuation appears attractive relative to its sector, but the negative free cash flow and declining revenue growth temper our enthusiasm. The partnership's P/E ratio of 14.4x is significantly lower than the sector average of 22.7x, suggesting that the stock is undervalued. Similarly, the EV/EBITDA ratio of 2.8x is well below the sector average of 4.8x, further indicating a potential undervaluation. However, these multiples do not fully reflect the risks associated with the partnership's financial performance.
The negative free cash flow raises questions about the sustainability of the partnership's distributions. While the current distribution yield may appear attractive, it is important to consider the source of the funds used to pay the distributions. If the partnership is consistently funding its distributions with debt or asset sales, the long-term sustainability of the distributions is questionable. A more conservative valuation approach would discount the distribution yield to account for this risk.
The declining revenue growth also warrants a lower valuation multiple. The partnership's revenue declined by 10.8% year-over-year, while the sector experienced revenue growth of 20.1%. This suggests that EPD is facing headwinds in its core business segments and may not be able to sustain its historical growth rate. A lower growth rate would justify a lower valuation multiple.
Considering these factors, we believe that EPD's valuation is fair but not compelling. While the partnership's valuation multiples are attractive relative to its sector, the negative free cash flow and declining revenue growth suggest that the market is already pricing in some level of risk. A more bullish stance would require evidence of improved financial performance and a clear path to sustainable free cash flow generation.
A discounted cash flow (DCF) analysis, which is not possible with the provided data, would be necessary to determine a more precise intrinsic value. However, based on the available information, we believe that the current market price reflects a fair valuation of the partnership's assets and future prospects.
Risk & Uncertainty
Enterprise Products Partners faces several key risks that could impact its financial performance and valuation. One of the most significant risks is regulatory uncertainty. Changes in government regulations or environmental policies could impact the demand for midstream services and increase the partnership's operating costs. For example, stricter regulations on pipeline construction or emissions could delay or prevent new projects from coming online, while changes in tax laws could impact the partnership's profitability.
Another key risk is competition. The midstream energy sector is highly competitive, with numerous large, well-capitalized companies vying for market share. Increased competition could lead to lower prices for midstream services and reduced profitability for EPD. Furthermore, competitors could develop new technologies or business models that disrupt the existing market and erode EPD's competitive advantages.
The partnership also faces risks related to commodity price volatility. While EPD's business model is predicated on fee-based revenues, it is still indirectly exposed to commodity price fluctuations. Lower commodity prices could reduce production volumes, which in turn would decrease demand for midstream services. Furthermore, lower commodity prices could make it more difficult for producers to invest in new projects, which would limit EPD's growth opportunities.
Leverage is another significant risk. The partnership's high debt levels increase its financial vulnerability and limit its flexibility to respond to changing market conditions. A significant decline in revenue or profitability could make it difficult for EPD to service its debt obligations, potentially leading to financial distress. The negative free cash flow exacerbates this risk, as it necessitates increased borrowing or asset sales to fund future growth and maintain distributions.
Finally, concentration risk is a concern. EPD's operations are concentrated in certain geographic regions, particularly the Permian Basin and the Gulf Coast. Any disruption to energy production or infrastructure in these regions could have a significant impact on the partnership's financial performance. This could include natural disasters, terrorist attacks, or political instability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEnterprise Products Partners' extensive asset base and strategic positioning in key producing regions provide a stable and predictable cash flow stream, making it an attractive investment for income-seeking investors.
BULL VIEWThe partnership's attractive valuation multiples relative to the utilities sector suggest that the stock is undervalued and offers significant upside potential as the market recognizes its intrinsic value.
BULL VIEWEPD's management team has a proven track record of disciplined capital allocation and operational excellence, which should enable the partnership to navigate the current challenges and deliver long-term value to unitholders.
The Bear Case
BEAR VIEWEnterprise Products Partners' negative free cash flow and declining revenue growth raise serious concerns about the sustainability of its distributions and its ability to fund future growth without increasing leverage.
BEAR VIEWThe partnership's high debt levels and exposure to commodity price volatility make it vulnerable to economic downturns and regulatory changes, potentially leading to financial distress.
BEAR VIEWEPD's competitive advantages are not insurmountable, and increased competition from other large midstream companies could erode its market share and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score EPD and 4,400+ other equities.
ENTERPRISE PRODUCTS PARTNERS L.P. exhibits a 58% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.2%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
26.4%
Sector: 53.1%
Operating Margin
Core business profitability
13.5%
Sector: 21.5%
Net Margin
Bottom-line profitability
10.9%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.83%
Yield Delta+146%
Income Projection audit
A $10,000 investment would generate approximately $696 annually in dividends at the current trailing rate.
