Enterprise Products Partners (EPD) has quietly ground higher over the past year, delivering about 7% total return while many energy names swung around. That steady climb has investors revisiting whether the units still offer value.
See our latest analysis for Enterprise Products Partners.
At around $32.13 per unit, Enterprise’s 1 year total shareholder return of about 7% and powerful 5 year total shareholder return above 120% point to slow but persistent momentum, as investors steadily price in its disciplined growth and perceived lower risk profile.
If EPD’s steady climb appeals to you, this might be a good moment to broaden your search and explore fast growing stocks with high insider ownership for other potential standouts.
With units trading below analyst targets yet boasting a long record of steady growth, investors now face a familiar dilemma: is Enterprise Products Partners quietly undervalued, or is the market already factoring in years of expansion ahead?
With Enterprise Products Partners closing at $32.13 against a narrative fair value of about $35.67, the current price implies modest upside rooted in measured assumptions.
The completion of two gas processing plants in the Permian, along with several key pipeline and export terminal projects, is expected to enhance Enterprise Products Partners’ infrastructure, potentially driving revenue growth from increased volume handling and exports. With no major planned downtimes for the PDH plants after recent maintenance, Enterprise is poised to capture additional EBITDA that was previously lost to unplanned outages, suggesting potential earnings improvement.
Curious how modest top line expectations can still support a richer earnings profile and higher multiple than the sector norm? The narrative leans on improving margins, disciplined capital deployment, and a future valuation usually reserved for faster growing names. Want to see exactly how those moving pieces add up to today’s fair value call?
Result: Fair Value of $35.67 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering operational hiccups at PDH facilities or a sharper pullback in Permian drilling could quickly undermine those upbeat margin and valuation assumptions.
Find out about the key risks to this Enterprise Products Partners narrative.
If the story above does not quite match your view or you would rather lean on your own analysis, you can build a fresh perspective in just a few minutes, Do it your way.
A great starting point for your Enterprise Products Partners research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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