3 Reasons Why Enterprise Product Partners (EPD) is an Attractive Investment Opportunity

Friday, 19 April 2024, 08:46

Discover why investing in Enterprise Product Partners (EPD) stock can be a lucrative opportunity. From its stable and growing business model to an attractive valuation, EPD offers investors a strong potential for returns. With a safe distribution, robust growth prospects, and an undervalued stock price, EPD stands out as a sound investment choice.
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3 Reasons Why Enterprise Product Partners (EPD) is an Attractive Investment Opportunity

Key Highlights:

This high-yielding stock, Enterprise Product Partners (NYSE: EPD), offers attractive qualities for investors. The company's safe and growing distribution, stable business model, and attractive valuation make it a compelling investment choice.

A Safe and Growing Distribution:

  • Yield: Approximately 7%
  • Coverage Ratio: 1.7x for 2023
  • Leverage: 3x

Enterprise's distribution is well covered and poised for growth, making it an appealing income stream for investors.

A Stable and Growing Business:

  • Revenue Mix: 77% fee-based, 17% differentials
  • Growth Opportunities: $6.8 billion in projects underway
  • ROIC: Averaged 12% over the past decade

Enterprise's diversified revenue sources and solid growth prospects position it for long-term success.

An Attractive Valuation:

Trading at a favorable 9x EV/EBITDA multiple, Enterprise is currently undervalued compared to historical levels.

This article explores the compelling reasons to consider investing in Enterprise Product Partners (EPD) stock, highlighting its strong fundamentals and growth potential.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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