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Energy Transfer LP has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Energy Transfer LP's Interest Coverage for the quarter that ended in Jun. 2026 was 3.83.
Energy Transfer LP's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.51.
As of today, Energy Transfer LP's Altman Z-Score is 1.46.
Energy Transfer LP (NYSE:ET) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Energy Transfer LP has the Financial Strength Rank of 4.
Energy Transfer LP Financial Strength Related Terms
ET vs KMI, EPD, TRGP: Financial Strength Comparison
For the Oil & Gas Midstream subindustry, Energy Transfer LP's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Energy Transfer LP Financial Strength vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Energy Transfer LP's Financial Strength distribution charts can be found below:
* The bar in red indicates where Energy Transfer LP's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Energy Transfer LP has a Z-score of 1.46, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.46 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Energy Transfer LP (ET) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Energy Transfer LP and its competitors. This is near median its historical median of 4.00. Over the past decade, Energy Transfer LP's Financial Strength has ranged from 2.00 to 5.00.
Is Energy Transfer LP's Financial Strength too high?
Energy Transfer LP's current Financial Strength of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 5.00. Overall, Energy Transfer LP has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Energy Transfer LP's Financial Strength compare to KMI and EPD?
Energy Transfer LP's Financial Strength of 4 can be compared against companies in the Oil & Gas industry. Historically, Energy Transfer LP's own Financial Strength has ranged from 2.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Energy Transfer LP and its competitors. Energy Transfer LP's current Financial Strength is 4, which is near median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Transfer LP stock overvalued right now?
Based on GuruFocus' analysis, Energy Transfer LP (ET) is currently considered Fairly Valued. The stock's GF Value™ is $23.05, compared to a current price of $21.50 — trading 6.7% below its estimated fair value. The current Financial Strength is 4, which is near median its 10-year median of 4.00. Energy Transfer LP's overall GF Score™ is 84/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Energy Transfer LP (ET), the current Financial Strength is 4 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Energy Transfer LP (ET) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Transfer LP stock appears to be undervalued.
The current stock price of $21.50 is trading 6.7% below its estimated GF Value™ of $23.05.
GuruFocus considers Energy Transfer LP to be Fairly Valued.
Key valuation signals for ET:
Financial Strength: 4 (near median its 10-year median of 4.00)
GF Value™: $23.05 vs. price of $21.50 (6.7% below fair value)
No single metric tells the full story. See the ET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Transfer is a diversified midstream firm operating from wellhead to consuming demand. It handles natural gas, natural gas liquids, crude oil, and refined products. Commodities are moved through its network of field-level gathering and processing to refineries and demand centers. Operations are concentrated in Texas and the midcontinent United States. It also controls Sunoco and USA Compression through its general partner relationship.
84GF Score
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