Considering Energy Transfer's profitability and operating efficiency indicators, Energy Transfer's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Energy Transfer's ability to earn profits and add value for shareholders.
For Energy Transfer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Energy Transfer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Energy Transfer LP utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Energy Transfer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Energy Transfer LP over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Energy Transfer's value and its price as these two are different measures arrived at by different means. Investors typically determine if Energy Transfer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Energy Transfer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Energy Transfer LP Total Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Energy Transfer's current stock value. Our valuation model uses many indicators to compare Energy Transfer value to that of its competitors to determine the firm's financial worth.
Energy Transfer LP is rated below average in operating margin category among its peers. It is rated # 2 in total asset category among its peers fabricating about 1,082,838,095,238 of Total Asset per Operating Margin. As of now, Energy Transfer's Operating Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Energy Transfer's earnings, one of the primary drivers of an investment's value.
Energy Total Asset vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Energy Transfer
Operating Margin
=
Operating Income
Revenue
X
100
=
0.10 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Total Asset is everything that a business owns. It is the sum of current and long-term assets owned by a firm at a given time. These assets are listed on a balance sheet and typically valued based on their purchasing prices, not the current market value.
Energy Transfer
Total Asset
=
Tangible Assets
+
Intangible Assets
=
113.7 B
Total Asset is typically divided on the balance sheet on current asset and long-term asset. Long-term is the value of company property and other capital assets that are expected to be useable for more than one year. Long term assets are reported net of depreciation. On the other hand current assets are assets that are expected to be sold or converted to cash as part of normal business operation.
Energy Total Asset Comparison
Energy Transfer is currently under evaluation in total asset category among its peers.
Energy Transfer Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Energy Transfer, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Energy Transfer will eventually generate negative long term returns. The profitability progress is the general direction of Energy Transfer's change in net profit over the period of time. It can combine multiple indicators of Energy Transfer, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Profitability drivers are factors that can directly affect your investment outlook on Energy Transfer. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Energy Transfer position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Energy Transfer's important profitability drivers and their relationship over time.
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Energy Transfer position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Energy Transfer will appreciate offsetting losses from the drop in the long position's value.
Energy Transfer Pair Trading
Energy Transfer LP Pair Trading Analysis
The ability to find closely correlated positions to Energy Transfer could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Energy Transfer when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Energy Transfer - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Energy Transfer LP to buy it.
The correlation of Energy Transfer is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Energy Transfer moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Energy Transfer LP moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Energy Transfer can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Energy Transfer position
In addition to having Energy Transfer in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
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Munis Funds
Funds or Etfs that invest in fixed income securities issued by states, cities, and towns as well as other public entities. The Munis Funds theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Munis Funds Theme or any other thematic opportunities.
When determining whether Energy Transfer LP is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Energy Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Energy Transfer Lp Stock. Highlighted below are key reports to facilitate an investment decision about Energy Transfer Lp Stock:
You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
To fully project Energy Transfer's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Energy Transfer LP at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Energy Transfer's income statement, its balance sheet, and the statement of cash flows.
Potential Energy Transfer investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Energy Transfer investors may work on each financial statement separately, they are all related. The changes in Energy Transfer's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Energy Transfer's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.