Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin13.1%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin11.1%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt6.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$32.2B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$528M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book2.66x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$3.0B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income96.7%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$13.8B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Enterprise Products Partners L.P.
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services; Crude Oil Pipelines & Services; Natural Gas Pipelines & Services; and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing activities. This segment operates natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of approximately 200 tractor-trailer tank trucks that are used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and transports, stores, and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation facilities, including propylene fractionation units and propane dehydrogenation facilities, and related marketing activities; butane isomerization complex and related deisobutanizer operations; and octane enhancement, isobutane dehydrogenation, and high purity isobutylene production facilities. It also operates refined products pipelines and terminals; and ethylene export terminals; and provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas.
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services; Crude Oil Pipelines & Services; Natural Gas Pipelines & Services; and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing activities. This segment operates natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of approximately 200 tractor-trailer tank trucks that are used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and transports, stores, and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation facilities, including propylene fractionation units and propane dehydrogenation facilities, and related marketing activities; butane isomerization complex and related deisobutanizer operations; and octane enhancement, isobutane dehydrogenation, and high purity isobutylene production facilities. It also operates refined products pipelines and terminals; and ethylene export terminals; and provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Enterprise Products Partners L.P. at $36.60.
The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.
At $36.60, the stock trades at a 28% premium to its Graham Number of $28.70. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
13.6%▲
12.8%▼
13.5%▲
11.5%•
N/A
Operating Margin %
13.1%▲
12.3%▼
13.0%▲
11.1%•
N/A
Net Income %
11.1%▲
10.5%▼
11.1%▲
9.4%•
N/A
Diluted EPS
2.66▼
2.69▲
2.52▲
2.50•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$77.9B
$77.2B
$71.0B
$68.1B
N/A
Total Debt
$34.8B▲
$32.3B▲
$29.1B▲
$28.6B•
N/A
Working Capital
$528M▲
-$44M▲
-$883M▲
-$1.7B•
N/A
Years to Pay Debt
5.98
5.47
5.26
5.22
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$3.0B▼
$3.6B▼
$4.3B▼
$6.1B•
N/A
Owner Earnings
$13.8B
$12.6B
$10.9B
$9.4B
N/A
CapEx % of Net Income
96.7%
77.0%
59.0%
35.8%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
9,630,000
9,587,000
9,042,000
8,915,000
Net Income From Continuing Operation Net Minority Interest
5,814,000
5,901,000
5,532,000
5,490,000
Reconciled Depreciation
2,323,000
2,194,000
2,072,000
1,974,000
Reconciled Cost Of Revenue
45,440,000
49,045,000
43,017,000
51,502,000
EBITDA
9,630,000
9,587,000
9,042,000
8,915,000
EBIT
7,307,000
7,393,000
6,970,000
6,941,000
Net Interest Income
-1,371,000
-1,305,000
-1,242,000
-1,233,000
Interest Expense
1,408,000
1,358,000
1,269,000
1,244,000
Interest Income
37,000
53,000
27,000
11,000
Normalized Income
5,814,000
5,901,000
5,532,000
5,490,000
Net Income From Continuing And Discontinued Operation
5,814,000
5,901,000
5,532,000
5,490,000
Total Expenses
45,691,000
49,289,000
43,248,000
51,743,000
Total Operating Income As Reported
7,266,000
7,338,000
6,929,000
6,907,000
Diluted Average Shares
2,188,000
2,192,000
2,194,000
2,199,000
Basic Average Shares
2,161,761
2,165,700
2,168,245
2,170,806
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
5,814,000
5,901,000
5,532,000
5,490,000
Average Dilution Earnings
59,000
60,000
53,000
49,000
Net Income Common Stockholders
5,755,000
5,841,000
5,479,000
5,441,000
Otherunder Preferred Stock Dividend
55,000
56,000
50,000
46,000
Preferred Stock Dividends
4,000
4,000
3,000
3,000
Net Income
5,814,000
5,901,000
5,532,000
5,490,000
Minority Interests
-62,000
-69,000
-125,000
-125,000
Net Income Including Noncontrolling Interests
5,876,000
5,970,000
5,657,000
5,615,000
Net Income Continuous Operations
5,876,000
5,970,000
5,657,000
5,615,000
Tax Provision
23,000
65,000
44,000
82,000
Pretax Income
5,899,000
6,035,000
5,701,000
5,697,000
Other Income Expense
365,000
410,000
476,000
487,000
Other Non Operating Income Expenses
4,000
2,000
14,000
23,000
Earnings From Equity Interest
361,000
408,000
462,000
464,000
Net Non Operating Interest Income Expense
-1,371,000
-1,305,000
-1,242,000
-1,233,000
Total Other Finance Cost
25,400
Interest Expense Non Operating
1,408,000
1,358,000
1,269,000
1,244,000
Interest Income Non Operating
37,000
53,000
27,000
11,000
Operating Income
6,905,000
6,930,000
6,467,000
6,443,000
Operating Expense
251,000
244,000
231,000
241,000
Selling General And Administration
251,000
244,000
231,000
241,000
General And Administrative Expense
251,000
244,000
231,000
241,000
Other Gand A
251,000
244,000
231,000
241,000
Gross Profit
7,156,000
7,174,000
6,698,000
6,684,000
Cost Of Revenue
45,440,000
49,045,000
43,017,000
51,502,000
Total Revenue
52,596,000
56,219,000
49,715,000
58,186,000
Operating Revenue
52,596,000
56,219,000
49,715,000
58,186,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
54,807
Ordinary Shares Number
2,161,761
2,165,700
2,168,245
2,170,806
Share Issued
2,161,761
2,165,700
2,168,245
2,170,806
Net Debt
26,715,000
Total Debt
34,772,000
32,262,000
29,071,000
28,636,000
Tangible Book Value
19,912,000
19,065,000
18,344,000
17,099,000
Invested Capital
64,178,000
60,678,000
56,470,000
54,967,000
Working Capital
528,000
-44,000
-883,000
-1,667,000
Net Tangible Assets
-9,871,000
-9,717,000
-9,378,000
-9,573,000
Capital Lease Obligations
377,000
366,000
323,000
341,000
Common Stock Equity
29,783,000
28,782,000
27,722,000
26,672,000
Total Capitalization
62,553,000
59,528,000
55,170,000
53,223,000
Total Equity Gross Minority Interest
30,614,000
29,639,000
28,808,000
27,751,000
Minority Interest
831,000
857,000
1,086,000
1,079,000
Gains Losses Not Affecting Retained Earnings
336,000
236,000
307,000
365,000
Treasury Stock
1,297,000
1,297,000
1,297,000
1,297,000
Total Partnership Capital
29,783,000
28,782,000
27,722,000
26,672,000
Limited Partnership Capital
29,447,000
28,546,000
27,415,000
26,307,000
Total Liabilities Net Minority Interest
47,288,000
47,529,000
42,174,000
40,357,000
Total Non Current Liabilities Net Minority Interest
34,456,000
32,352,000
29,043,000
28,092,000
Other Non Current Liabilities
45,000
17,000
8,000
8,000
Preferred Securities Outside Stock Equity
44,000
50,000
49,000
49,000
Derivative Product Liabilities
16,000
24,000
106,000
58,000
Non Current Deferred Liabilities
963,000
940,000
937,000
920,000
Non Current Deferred Revenue
261,000
284,000
326,000
320,000
Non Current Deferred Taxes Liabilities
702,000
656,000
611,000
600,000
Long Term Debt And Capital Lease Obligation
33,147,000
31,112,000
27,771,000
26,892,000
Long Term Capital Lease Obligation
377,000
366,000
323,000
341,000
Long Term Debt
32,770,000
30,746,000
27,448,000
26,551,000
Long Term Provisions
285,000
259,000
221,000
214,000
Current Liabilities
12,832,000
15,177,000
13,131,000
12,265,000
Other Current Liabilities
1,220,000
1,289,000
1,071,000
1,132,000
Current Debt And Capital Lease Obligation
1,625,000
1,150,000
1,300,000
1,744,000
Current Debt
1,625,000
1,150,000
1,300,000
1,744,000
Other Current Borrowings
1,625,000
1,150,000
1,300,000
1,744,000
Payables And Accrued Expenses
9,987,000
12,738,000
10,760,000
9,389,000
Current Accrued Expenses
566,000
536,000
455,000
426,000
Interest Payable
566,000
536,000
455,000
426,000
Payables
9,421,000
12,202,000
10,305,000
8,963,000
Other Payable
8,183,000
10,777,000
8,911,000
7,988,000
Dueto Related Parties Current
217,000
198,000
199,000
232,000
Accounts Payable
1,021,000
1,227,000
1,195,000
743,000
Total Assets
77,902,000
77,168,000
70,982,000
68,108,000
Total Non Current Assets
64,542,000
62,035,000
58,734,000
57,510,000
Other Non Current Assets
1,127,000
997,000
1,222,000
1,184,000
Investments And Advances
2,185,000
2,259,000
2,330,000
2,352,000
Long Term Equity Investment
2,185,000
2,259,000
2,330,000
2,352,000
Investmentsin Associatesat Cost
2,428,400
Goodwill And Other Intangible Assets
9,871,000
9,717,000
9,378,000
9,573,000
Other Intangible Assets
4,159,000
4,005,000
3,770,000
3,965,000
Goodwill
5,712,000
5,712,000
5,608,000
5,608,000
Net PPE
51,359,000
49,062,000
45,804,000
44,401,000
Accumulated Depreciation
-24,338,000
-22,330,000
-20,462,000
-18,800,000
Gross PPE
75,697,000
71,392,000
66,266,000
63,201,000
Construction In Progress
2,400,000
4,138,000
2,245,000
2,867,000
Other Properties
5,096,000
4,893,000
4,450,000
4,408,000
Machinery Furniture Equipment
67,762,000
61,937,000
59,160,000
55,539,000
Land And Improvements
439,000
424,000
411,000
387,000
Current Assets
13,360,000
15,133,000
12,248,000
10,598,000
Other Current Assets
1,302,000
566,000
457,000
394,000
Hedging Assets Current
434,000
534,000
347,000
469,000
Restricted Cash
276,000
255,000
140,000
130,000
Prepaid Assets
399,400
Inventory
3,884,000
3,955,000
3,352,000
2,554,000
Finished Goods
665,000
652,000
536,000
430,000
Raw Materials
3,219,000
3,303,000
2,816,000
2,124,000
Receivables
6,495,000
9,240,000
7,772,000
6,975,000
Duefrom Related Parties Current
1,000
4,000
7,000
11,000
Accounts Receivable
6,494,000
9,236,000
7,765,000
6,964,000
Allowance For Doubtful Accounts Receivable
-53,000
Gross Accounts Receivable
6,529,000
9,274,000
7,800,000
7,018,000
Cash Cash Equivalents And Short Term Investments
969,000
583,000
180,000
76,000
Cash And Cash Equivalents
969,000
583,000
180,000
76,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
2,965,000
3,571,000
4,303,000
6,075,000
Repurchase Of Capital Stock
-300,000
-219,000
-188,000
-250,000
Repayment Of Debt
-85,771,000
-50,546,000
-89,447,000
-97,395,000
Issuance Of Debt
88,281,000
53,715,000
89,899,000
96,140,000
Capital Expenditure
-5,620,000
-4,544,000
-3,266,000
-1,964,000
Interest Paid Supplemental Data
1,230,700
Income Tax Paid Supplemental Data
18,100
End Cash Position
1,245,000
838,000
320,000
206,000
Beginning Cash Position
838,000
320,000
206,000
2,965,000
Changes In Cash
407,000
518,000
114,000
-2,759,000
Financing Cash Flow
-2,687,000
-2,164,000
-4,258,000
-5,844,000
Cash Flow From Continuing Financing Activities
-2,687,000
-2,164,000
-4,258,000
-5,844,000
Net Other Financing Charges
-219,000
-602,000
-221,000
-244,000
Cash Dividends Paid
-4,678,000
-4,512,000
-4,301,000
-4,095,000
Common Stock Dividend Paid
-4,678,000
-4,512,000
-4,301,000
-4,095,000
Net Common Stock Issuance
-300,000
-219,000
-188,000
-250,000
Common Stock Payments
-300,000
-219,000
-188,000
-250,000
Net Issuance Payments Of Debt
2,510,000
3,169,000
452,000
-1,255,000
Net Long Term Debt Issuance
2,510,000
3,169,000
452,000
-1,255,000
Long Term Debt Payments
-85,771,000
-50,546,000
-89,447,000
-97,395,000
Long Term Debt Issuance
88,281,000
53,715,000
89,899,000
96,140,000
Investing Cash Flow
-5,491,000
-5,433,000
-3,197,000
-4,954,000
Cash Flow From Continuing Investing Activities
-5,491,000
-5,433,000
-3,197,000
-4,954,000
Net Other Investing Changes
57,000
-17,000
29,000
117,000
Dividends Received Cfi
74,000
77,000
42,000
98,000
Net Business Purchase And Sale
-2,000
-949,000
-2,000
-3,205,000
Purchase Of Business
-2,000
-949,000
-2,000
-3,205,000
Capital Expenditure Reported
-5,620,000
-4,544,000
-3,266,000
-1,964,000
Operating Cash Flow
8,585,000
8,115,000
7,569,000
8,039,000
Cash Flow From Continuing Operating Activities
8,585,000
8,115,000
7,569,000
8,039,000
Dividend Received Cfo
364,000
406,000
446,000
446,000
Change In Working Capital
-124,000
-506,000
-555,000
-54,000
Change In Other Current Liabilities
-334,000
-108,000
431,000
161,000
Change In Other Current Assets
58,000
38,000
31,000
-42,000
Change In Payables And Accrued Expense
-2,748,000
1,765,000
1,154,000
-325,000
Change In Accrued Expense
29,000
81,000
29,000
-26,000
Change In Interest Payable
29,000
81,000
29,000
-26,000
Change In Payable
-2,777,000
1,684,000
1,125,000
-299,000
Change In Account Payable
-128,000
-183,000
276,000
-109,000
Change In Prepaid Assets
27,000
-152,000
-651,000
-97,000
Change In Inventory
122,000
-598,000
-714,000
131,000
Change In Receivables
2,751,000
-1,451,000
-806,000
118,000
Changes In Account Receivables
2,751,000
-1,451,000
-806,000
118,000
Other Non Cash Items
409,000
375,000
344,000
330,000
Asset Impairment Charge
50,000
57,000
32,000
53,000
Deferred Tax
46,000
45,000
12,000
60,000
Deferred Income Tax
46,000
45,000
12,000
60,000
Depreciation Amortization Depletion
2,323,000
2,194,000
2,072,000
1,974,000
Depreciation And Amortization
2,323,000
2,194,000
2,072,000
1,974,000
Amortization Cash Flow
216,000
207,000
201,000
177,000
Amortization Of Intangibles
216,000
207,000
201,000
177,000
Depreciation
2,107,000
1,987,000
1,871,000
1,797,000
Operating Gains Losses
-359,000
-426,000
-439,000
-385,000
Earnings Losses From Equity Investments
-361,000
-408,000
-462,000
-464,000
Gain Loss On Investment Securities
16,000
-20,000
33,000
78,000
Net Income From Continuing Operations
5,876,000
5,970,000
5,657,000
5,615,000
4/7
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
$28.70
Margin of Safety
0%
Market Cap / Net Assets
2.6x
Net Assets: $30.6B
Warren's Owner Earnings
$13.8B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/7 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$52.6B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.04x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
✅
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
6.00%
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $2.50 to $2.66 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+6.4% EPS growth
vs > 33% EPS growth
✅
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
13.6x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
2.66x P/B (P/E×P/B: 36.0)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $52.6Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.04xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
✅ Dividend Record — 6.00%vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $2.50 to $2.66 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
✅ Moderate P/E Ratio — 13.6xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what Enterprise Products Partners L.P. is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-15.68
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$35.46
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
8.4%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
96.7%
77.0%
59.0%
35.8%
N/A
Repurchase of Capital Stock
-$300M
-$219M
-$188M
-$250M
N/A
Free Cash Flow
$3.0B▼
$3.6B▼
$4.3B▼
$6.1B•
N/A•
Warren's Owner Earnings
$13.8B
$12.6B
$10.9B
$9.4B
N/A
Peers & Industry
No auto-detected peers for Oil & Gas Midstream. You can manually compare EPD against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
32.98%
High — management has strong skin in the game
Return on Equity (ROE)
19.5%
Excellent — management generates strong returns on equity
Return on Assets (ROA)
7.5%
Strong — management uses assets efficiently
Share Buybacks (Latest Year)
$300M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+7.8% YoY
Debt is roughly stable
Leadership Team
James Teague
Co-CEO & Director of Enterprise Products Holdings LLC
Age 80
Pay: $6,887,598
0.118% of net income
Randall Fowler
Co-CEO & Director of Enterprise Products Holdings LLC
Age 68
Pay: $5,160,063
0.089% of net income
Richard Daniel Boss
Executive VP, Principal Accounting Officer & CFO of Enterprise Products Holdings LLC
Age 50
Pay: $1,608,804
0.028% of net income
Graham Bacon
Executive VP & COO of Enterprise Products Holdings LLC
Age 61
Pay: $2,073,866
0.036% of net income
John Burkhalter
Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Alps Advisors Inc.
2.01%
43,521,097
Invesco Ltd.
1.23%
26,646,255
Morgan Stanley
0.99%
21,419,522
Blackstone Inc
0.98%
21,103,484
Goldman Sachs Group Inc
0.93%
20,090,417
Sarofim, Fayez & Co
0.75%
16,199,184
Tortoise Capital Advisors, LLC
0.69%
14,861,384
Energy Income Partners, LLC
0.64%
13,731,348
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.47
Low volatility — more stable than the market
Short Interest
2.3% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.13x
Moderate leverage
Current Ratio
0.91x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $30.01Current: $36.60High: $40.17
Currently at 65% of 52-week range
Enterprise Products Partners L.P. (EPD) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $28.70. Margin of safety: 0%. Gross profit margin: 13.6%. Operating margin: 13.1%. Net margin: 11.1%. Market cap: $79.2B. Sector: Energy. Industry: Oil & Gas Midstream. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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