Energy Transfer LP
🇺🇸 ET · NYSE/NASDAQ · US29273V1008
Energy
USD 19.17 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
14.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 19.17 ÷ 1.36 = 14.1
TTM period through: 2026-03-31
Forward P/E (estimated): 11.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.2
Yield (Fwd)
6.99%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 6.91%
Div. Growth (5Y CAGR)
4.5%
Net Debt/EBITDA (TTM)
4.8x
Latest quarter: 19.0x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 19.0x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
98.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 98.5%
Cash Flow Payout (TTM): 44.7%
FCF Coverage (TTM): 0.77x
ROE
12.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
8.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Energy Transfer is a premier midstream energy infrastructure provider operating an irreplaceable pipeline network that generates massive, fee-based cash flows. Trading at $19.17 with an exceptionally low P/FFO of 5.77x, the stock sits well below our fair value estimate of 12-15x, representing massive upside to fair value. Worth considering for new positions at current levels, as the 6.9% yield is highly secure with an AFFO payout ratio under 26%, providing robust income while waiting for multiple expansion.
Sector Context
Energy Transfer operates a massive midstream network of pipelines, terminals, and storage facilities, functioning essentially as a toll road for transporting oil, natural gas, and natural gas liquids (NGLs). For dividend investors, midstream infrastructure must be evaluated using Price-to-Funds From Operations (P/FFO) and cash flow coverage rather than traditional P/E or EPS payout, as enormous non-cash depreciation charges artificially depress GAAP earnings despite the assets generating highly stable, fee-based cash flows.
Temporary Opportunity Identified
The market continues to apply a severe discount to the equity (evidenced by sub-6x P/FFO) due to the stigma of historical strategic dividend resets, lingering headline noise from legacy class-action settlements, and generalized energy transition fears.
📊 Strategy Analysis
- • Trading at an exceptionally low P/FFO of 5.77x, well below the standard 12-15x fair value range for infrastructure assets, indicating significant undervaluation.
- • The attractive 6.91% dividend yield is highly secure, supported by an excellent cash flow payout ratio of 44.7% and AFFO payout ratio of 25.77%, fully overcoming optical GAAP earnings payout concerns.
- • Operates an irreplaceable, toll-road-like midstream asset base generating massive, fee-based operating cash flows ($3.41B) that are largely insulated from direct commodity price volatility.
- • Historical dividend cuts (2020/2021) were prudent strategic resets to strengthen the balance sheet and move toward a self-funded model, which has drastically improved current fundamental stability.
⚠ What to Watch
- • Net Debt/EBITDA of 4.78x exceeds the strategy's standard conservative 3x threshold, though elevated leverage is customary for asset-heavy midstream partnerships.
- • Long-term structural energy transition risks could gradually impact the terminal value of fossil fuel infrastructure assets over the coming decades.
- • Ongoing environmental litigation and regulatory oversight, including continued DAPL uncertainties and proposed FERC civil penalties, introduce persistent headline noise and compliance costs.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-30
Disclaimer: This information is for educational purposes only. Not financial advice.