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Enterprise Products Partners LP (NYSE:EPD)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Enterprise Products Partners LP has an F-score of 5 indicating the company's financial situation is typical for a stable company.

EPD' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 0

3
7

During the past 13 years, the highest Piotroski F-Score of Enterprise Products Partners LP was 7. The lowest was 3. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 798.8 + 637.7 + 691.1 + 659.8 = $2,787 Mil.
Cash Flow from Operations was 1404.1 + 467.8 + 832.5 + 0 = $2,704 Mil.
Revenue was 12909.9 + 12520.8 + 12330.2 + 10190.3 = $47,951 Mil.
Gross Profit was 1029.4 + 881.7 + 915.4 + 840.6 = $3,667 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(40138.7 + 40990.5 + 41571.3 + 42905.5 + 0) / 5 = $33121.2 Mil.
Total Assets at the begining of this year (Dec13) was $40,139 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was 753.5 + 552.5 + 592 + 698.9 = $2,597 Mil.

Revenue was 11383.1 + 11149.3 + 12093.3 + 13101.3 = $47,727 Mil.
Gross Profit was 962.7 + 782.1 + 819.8 + 923.7 = $3,488 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(35934.4 + 38101.4 + 37876.9 + 40125 + 40138.7) / 5 = $38435.28 Mil.
Total Assets at the begining of last year (Dec12) was $35,934 Mil.
Long-Term Debt was $16,227 Mil.
Total Current Assets was $7,023 Mil.
Total Current Liabilities was $8,239 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Enterprise Products Partners LP's current net income (TTM) was 2,787. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Enterprise Products Partners LP's current cash flow from operations (TTM) was 2,704. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Dec13)
=2787.4/40138.7
=0.0694442

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=2596.9/35934.4
=0.0722678

Enterprise Products Partners LP's return on assets of this year was 0.0694442. Enterprise Products Partners LP's return on assets of last year was 0.0722678. ==> Last year is higher ==> Score 0.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Enterprise Products Partners LP's current net income (TTM) was 2,787. Enterprise Products Partners LP's current cash flow from operations (TTM) was 2,704. ==> 2,704 <= 2,787 ==> CFROA <= ROA ==> Score 0.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=0/33121.2
=0

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=16226.5/38435.28
=0.42217723

Enterprise Products Partners LP's gearing of this year was 0. Enterprise Products Partners LP's gearing of last year was 0.42217723. ==> This year is lower or equal to last year. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Dec14)=Total Current Assets/Total Current Liabilities
=0/0
=

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=7023.4/8238.7
=0.85248886

Enterprise Products Partners LP's current ratio of this year was . Enterprise Products Partners LP's current ratio of last year was 0.85248886. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Enterprise Products Partners LP's number of shares in issue this year was 0. Enterprise Products Partners LP's number of shares in issue last year was 2035.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3667.1/47951.2
=0.07647567

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3488.3/47727
=0.07308861

Enterprise Products Partners LP's gross margin of this year was 0.07647567. Enterprise Products Partners LP's gross margin of last year was 0.07308861. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Dec13)
=47951.2/40138.7
=1.19463759

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=47727/35934.4
=1.32817022

Enterprise Products Partners LP's asset turnover of this year was 1.19463759. Enterprise Products Partners LP's asset turnover of last year was 1.32817022. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+0+1+0+1+1+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Enterprise Products Partners LP has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Enterprise Products Partners LP Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Q1 111111111
Q2 111111111
Q3 010100101
Q4 111111011
Q5 110010110
Q6 100101001
Q7 000110000
Q8 110010010
Q9 011101101
F-score 674765556

Enterprise Products Partners LP Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Q1 111111111
Q2 111111111
Q3 100001000
Q4 011111111
Q5 110001111
Q6 001111001
Q7 000000000
Q8 111110000
Q9 000011110
F-score 5555675550
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