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 Margin10.9%
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 Margin5.2%
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
D
Years to Pay Off Debt15.8 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-$65.0B
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$3.3B
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-Book1.88x
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$3.8B
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 Income142.2%
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$16.4B
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 Energy Transfer LP
Energy Transfer LP, together with its subsidiaries, provides energy-related services in the United States. It operates through Intrastate Transportation and Storage; Interstate Transportation and Storage; Midstream; Natural Gas Liquid (NGL) and Refined Products Transportation and Services; Crude Oil Transportation and Services; Investment in Sunoco LP; Investment in USA Compression Partners, LP (USAC); and All Other segments. The company owns and operates natural gas transportation pipelines and storage facilities; and approximately 12,200 miles of intrastate natural gas transportation pipelines and 20,090 miles of interstate natural gas pipelines. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. In addition, the company owns and operates natural gas gathering pipelines, processing plants, and treating and conditioning facilities; and natural gas gathering, compression, treating, dehydration and processing, oil pipeline facilities. Further, it owns 5,700 miles of NGL pipelines; NGL fractionation and storage facilities; and other NGL storage assets and terminals. Additionally, the company provides crude oil transportation, terminalling, trucking, acquisition, and marketing activities; owns and operates approximately 18,000 miles of crude oil trunk and gathering pipelines; and sells and distributes motor fuels and other petroleum products under the Sunoco and EcoMaxx brands. It also offers natural gas compression; wholesale power trading; and carbon dioxide and hydrogen sulfide removal services, as well as management of coal and natural resources properties; sells standing timber; leases coal-related infrastructure facilities; and collects oil and gas royalties. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. Energy Transfer LP was founded in 1996 and is headquartered in Dallas, Texas.
Energy Transfer LP, together with its subsidiaries, provides energy-related services in the United States. It operates through Intrastate Transportation and Storage; Interstate Transportation and Storage; Midstream; Natural Gas Liquid (NGL) and Refined Products Transportation and Services; Crude Oil Transportation and Services; Investment in Sunoco LP; Investment in USA Compression Partners, LP (USAC); and All Other segments. The company owns and operates natural gas transportation pipelines and storage facilities; and approximately 12,200 miles of intrastate natural gas transportation pipelines and 20,090 miles of interstate natural gas pipelines. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. In addition, the company owns and operates natural gas gathering pipelines, processing plants, and treating and conditioning facilities; and natural gas gathering, compression, treating, dehydration and processing, oil pipeline facilities. Further, it owns 5,700 miles of NGL pipelines; NGL fractionation and storage facilities; and other NGL storage assets and terminals. Additionally, the company provides crude oil transportation, terminalling, trucking, acquisition, and marketing activities; owns and operates approximately 18,000 miles of crude oil trunk and gathering pipelines; and sells and distributes motor fuels and other petroleum products under the Sunoco and EcoMaxx brands. It also offers natural gas compression; wholesale power trading; and carbon dioxide and hydrogen sulfide removal services, as well as management of coal and natural resources properties; sells standing timber; leases coal-related infrastructure facilities; and collects oil and gas royalties. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. Energy Transfer LP was founded in 1996 and is headquartered in Dallas, 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 Energy Transfer LP at $18.75.
The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.
At $18.75, the stock trades at a 14% premium to its Graham Number of $16.49. 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: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
19.1%▲
18.8%▲
17.4%▲
15.0%•
N/A
Operating Margin %
10.9%▼
11.1%▲
10.6%▲
9.0%•
N/A
Net Income %
5.2%▼
5.8%▲
5.0%▼
5.3%•
N/A
Diluted EPS
1.21▼
1.28▲
1.09▼
1.40•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$141.3B
$125.4B
$113.7B
$105.6B
N/A
Total Debt
$70.1B▲
$60.6B▲
$53.2B▲
$49.1B•
N/A
Working Capital
$3.3B▲
$1.5B▲
$1.2B▼
$1.7B•
N/A
Years to Pay Debt
15.81
12.58
13.53
10.32
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$3.8B▼
$7.3B▲
$6.4B▲
$5.7B•
N/A
Owner Earnings
$16.4B
$14.1B
$11.5B
$12.3B
N/A
CapEx % of Net Income
142.2%
86.5%
79.6%
71.1%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-18,470
39,724
-34,462
-3,125
Tax Rate For Calcs
0
0
Normalized EBITDA
15,533,000
14,874,000
13,197,000
12,635,000
Total Unusual Items
-319,000
522,000
-637,000
-93,000
Total Unusual Items Excluding Goodwill
-319,000
522,000
-637,000
-93,000
Net Income From Continuing Operation Net Minority Interest
4,433,000
4,814,000
3,935,000
4,756,000
Reconciled Depreciation
5,682,000
5,165,000
4,385,000
4,164,000
Reconciled Cost Of Revenue
69,177,000
67,140,000
64,926,000
76,396,000
EBITDA
15,214,000
15,396,000
12,560,000
12,542,000
EBIT
9,532,000
10,231,000
8,175,000
8,378,000
Net Interest Income
-3,474,000
-3,125,000
-2,578,000
-2,306,000
Interest Expense
3,474,000
3,125,000
2,578,000
2,306,000
Normalized Income
4,733,530
4,331,724
4,537,538
4,845,875
Net Income From Continuing And Discontinued Operation
4,433,000
4,814,000
3,935,000
4,756,000
Total Expenses
76,224,000
73,481,000
70,279,000
81,752,000
Total Operating Income As Reported
9,027,000
9,138,000
8,295,000
7,738,000
Diluted Average Shares
3,449,500
3,420,600
3,177,200
3,097,000
Basic Average Shares
3,432,900
3,395,100
3,161,700
3,086,800
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
4,172,000
4,393,000
3,468,000
4,328,000
Average Dilution Earnings
-1,000
-1,000
-1,000
-2,000
Net Income Common Stockholders
4,173,000
4,394,000
3,469,000
4,330,000
Otherunder Preferred Stock Dividend
256,000
416,000
463,000
422,000
Preferred Stock Dividends
4,000
4,000
3,000
4,000
Net Income
4,433,000
4,814,000
3,935,000
4,756,000
Minority Interests
-1,275,000
-1,751,000
-1,359,000
-1,112,000
Net Income Including Noncontrolling Interests
5,708,000
6,565,000
5,294,000
5,868,000
Net Income Continuous Operations
5,708,000
6,565,000
5,294,000
5,868,000
Tax Provision
350,000
541,000
303,000
204,000
Pretax Income
6,058,000
7,106,000
5,597,000
6,072,000
Other Income Expense
220,000
1,041,000
-132,000
254,000
Other Non Operating Income Expenses
120,000
140,000
122,000
90,000
Special Income Charges
-319,000
522,000
-637,000
-386,000
Gain On Sale Of Ppe
0
586,000
0
0
Other Special Charges
34,000
12,000
625,000
38,000
Write Off
386,000
0
Impairment Of Capital Assets
285,000
52,000
12,000
386,000
Earnings From Equity Interest
419,000
379,000
383,000
257,000
Gain On Sale Of Security
6,000
36,000
293,000
61,000
Net Non Operating Interest Income Expense
-3,474,000
-3,125,000
-2,578,000
-2,306,000
Interest Expense Non Operating
3,474,000
3,125,000
2,578,000
2,306,000
Operating Income
9,312,000
9,190,000
8,307,000
8,124,000
Operating Expense
7,047,000
6,341,000
5,353,000
5,356,000
Other Operating Expenses
5,867,000
5,164,000
4,368,000
4,338,000
Selling General And Administration
1,180,000
1,177,000
985,000
1,018,000
Gross Profit
16,359,000
15,531,000
13,660,000
13,480,000
Cost Of Revenue
69,177,000
67,140,000
64,926,000
76,396,000
Total Revenue
85,536,000
82,671,000
78,586,000
89,876,000
Operating Revenue
83,814,000
81,288,000
77,525,000
89,049,000
Balance Sheet
2025
2024
2023
2022
2021
Preferred Shares Number
67,800
67,800
Ordinary Shares Number
3,439,987
3,431,088
3,367,526
3,094,445
Share Issued
3,439,987
3,431,088
3,367,526
3,094,445
Net Debt
67,061,000
59,448,000
52,227,000
48,005,000
Total Debt
70,093,000
60,557,000
53,222,000
49,105,000
Tangible Book Value
21,476,000
25,244,000
26,424,000
25,044,000
Invested Capital
102,699,000
94,878,000
89,070,000
81,287,000
Working Capital
3,278,000
1,546,000
1,156,000
1,713,000
Net Tangible Assets
-12,890,000
-9,874,000
-10,258,000
-7,981,000
Capital Lease Obligations
1,760,000
797,000
834,000
843,000
Common Stock Equity
34,366,000
35,118,000
36,682,000
33,025,000
Total Capitalization
102,674,000
94,870,000
88,062,000
81,285,000
Total Equity Gross Minority Interest
49,260,000
46,434,000
44,717,000
41,152,000
Minority Interest
14,894,000
11,316,000
8,035,000
8,127,000
Gains Losses Not Affecting Retained Earnings
82,000
73,000
28,000
16,000
Total Partnership Capital
34,366,000
35,118,000
36,682,000
33,025,000
General Partnership Capital
-2,000
-2,000
-2,000
-2,000
Limited Partnership Capital
34,286,000
35,047,000
36,656,000
33,011,000
Total Liabilities Net Minority Interest
92,026,000
78,946,000
68,981,000
64,491,000
Total Non Current Liabilities Net Minority Interest
77,071,000
66,290,000
57,704,000
54,123,000
Other Non Current Liabilities
1,941,000
1,618,000
1,611,000
1,341,000
Preferred Securities Outside Stock Equity
783,000
Derivative Product Liabilities
0
4,000
23,000
193,000
Non Current Deferred Liabilities
5,307,000
4,190,000
3,931,000
3,701,000
Non Current Deferred Taxes Liabilities
5,307,000
4,190,000
3,931,000
3,701,000
Long Term Debt And Capital Lease Obligation
69,823,000
60,482,000
52,158,000
49,058,000
Long Term Capital Lease Obligation
1,515,000
730,000
778,000
798,000
Long Term Debt
68,308,000
59,752,000
51,380,000
48,260,000
Current Liabilities
14,955,000
12,656,000
11,277,000
10,368,000
Other Current Liabilities
1,052,000
952,000
683,000
609,000
Current Deferred Liabilities
709,000
682,000
552,000
490,000
Current Deferred Revenue
709,000
682,000
552,000
490,000
Current Debt And Capital Lease Obligation
270,000
75,000
1,064,000
47,000
Current Capital Lease Obligation
245,000
67,000
56,000
45,000
Current Debt
25,000
8,000
1,008,000
2,000
Other Current Borrowings
25,000
8,000
1,008,000
2,000
Payables And Accrued Expenses
12,924,000
10,947,000
8,978,000
9,222,000
Current Accrued Expenses
2,484,000
1,795,000
1,485,000
1,510,000
Interest Payable
878,000
685,000
637,000
559,000
Payables
10,440,000
9,152,000
7,493,000
7,712,000
Other Payable
86,000
90,000
163,000
224,000
Dueto Related Parties Current
41,000
19,000
21,000
17,000
Total Tax Payable
844,000
737,000
646,000
519,000
Accounts Payable
9,469,000
8,306,000
6,663,000
6,952,000
Total Assets
141,286,000
125,380,000
113,698,000
105,643,000
Total Non Current Assets
123,053,000
111,178,000
101,265,000
93,562,000
Other Non Current Assets
2,236,000
1,678,000
1,440,000
1,289,000
Defined Pension Benefit
209,000
188,000
145,000
129,000
Non Current Deferred Assets
146,000
151,000
148,000
140,000
Investments And Advances
3,589,000
3,266,000
3,097,000
2,893,000
Long Term Equity Investment
3,589,000
3,266,000
3,097,000
2,893,000
Investmentsin Associatesat Cost
2,947,000
Goodwill And Other Intangible Assets
12,890,000
9,874,000
10,258,000
7,981,000
Other Intangible Assets
7,438,000
5,971,000
6,239,000
5,415,000
Net PPE
103,983,000
96,021,000
86,177,000
81,130,000
Accumulated Depreciation
-39,141,000
-34,030,000
-29,581,000
-25,685,000
Gross PPE
143,124,000
130,051,000
115,758,000
106,815,000
Construction In Progress
5,841,000
4,633,000
2,315,000
2,405,000
Other Properties
117,385,000
111,186,000
100,088,000
92,163,000
Machinery Furniture Equipment
8,399,000
7,869,000
7,978,000
7,274,000
Buildings And Improvements
8,448,000
4,688,000
3,848,000
3,546,000
Land And Improvements
3,051,000
1,675,000
1,529,000
1,427,000
Current Assets
18,233,000
14,202,000
12,433,000
12,081,000
Other Current Assets
472,000
327,000
308,000
392,000
Hedging Assets Current
52,000
9,000
66,000
10,000
Prepaid Assets
216,000
150,000
205,000
334,000
Inventory
4,770,000
3,070,000
2,478,000
2,461,000
Finished Goods
3,792,000
2,389,000
1,916,000
2,048,000
Raw Materials
978,000
681,000
562,000
413,000
Receivables
11,451,000
10,334,000
9,215,000
8,627,000
Duefrom Related Parties Current
119,000
87,000
101,000
93,000
Taxes Receivable
57,000
56,000
67,000
68,000
Accounts Receivable
11,275,000
10,191,000
9,047,000
8,466,000
Cash Cash Equivalents And Short Term Investments
1,272,000
312,000
161,000
257,000
Cash And Cash Equivalents
1,272,000
312,000
161,000
257,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
3,846,000
7,342,000
6,421,000
5,670,000
Repurchase Of Capital Stock
-500,000
-3,466,000
0
0
Repayment Of Debt
-28,052,000
-29,409,000
-31,416,000
-29,681,000
Issuance Of Debt
32,870,000
34,150,000
32,130,000
28,838,000
Issuance Of Capital Stock
1,473,000
0
0
0
Capital Expenditure
-6,303,000
-4,164,000
-3,134,000
-3,381,000
Interest Paid Supplemental Data
3,136,000
2,884,000
2,298,000
2,167,000
Income Tax Paid Supplemental Data
206,000
103,000
54,000
41,000
End Cash Position
1,272,000
312,000
161,000
257,000
Beginning Cash Position
312,000
161,000
257,000
336,000
Changes In Cash
960,000
151,000
-96,000
-79,000
Financing Cash Flow
-816,000
-5,451,000
-5,326,000
-5,108,000
Cash Flow From Continuing Financing Activities
-816,000
-5,451,000
-5,326,000
-5,108,000
Net Other Financing Charges
-1,882,000
-2,103,000
-1,792,000
-1,218,000
Cash Dividends Paid
-4,725,000
-4,623,000
-4,248,000
-3,047,000
Common Stock Dividend Paid
-4,725,000
-4,623,000
-4,248,000
-3,047,000
Net Preferred Stock Issuance
973,000
-3,466,000
0
0
Preferred Stock Payments
-500,000
-3,466,000
0
0
Preferred Stock Issuance
1,473,000
0
0
Net Common Stock Issuance
0
0
858,000
Common Stock Payments
0
0
-31,000
Common Stock Issuance
0
0
889,000
Net Issuance Payments Of Debt
4,818,000
4,741,000
714,000
-843,000
Net Long Term Debt Issuance
4,818,000
4,741,000
714,000
-843,000
Long Term Debt Payments
-28,052,000
-29,409,000
-31,416,000
-29,681,000
Long Term Debt Issuance
32,870,000
34,150,000
32,130,000
28,838,000
Investing Cash Flow
-8,373,000
-5,904,000
-4,325,000
-4,022,000
Cash Flow From Continuing Investing Activities
-8,373,000
-5,904,000
-4,325,000
-4,022,000
Dividends Received Cfi
61,000
75,000
63,000
62,000
Net Investment Purchase And Sale
0
-84,000
0
0
Purchase Of Investment
0
-84,000
0
0
Net Business Purchase And Sale
-2,271,000
-2,827,000
-1,335,000
-839,000
Sale Of Business
0
27,000
0
302,000
Purchase Of Business
-2,271,000
-2,854,000
-1,335,000
-1,141,000
Capital Expenditure Reported
-6,303,000
-4,164,000
-3,134,000
-3,381,000
Operating Cash Flow
10,149,000
11,506,000
9,555,000
9,051,000
Cash Flow From Continuing Operating Activities
10,149,000
11,506,000
9,555,000
9,051,000
Dividend Received Cfo
382,000
356,000
353,000
232,000
Change In Working Capital
-1,976,000
-196,000
-451,000
-1,502,000
Change In Other Working Capital
-48,000
60,000
-43,000
-349,000
Change In Other Current Liabilities
-523,000
-123,000
-33,000
66,000
Change In Other Current Assets
-200,000
-84,000
96,000
-180,000
Change In Payables And Accrued Expense
-442,000
1,446,000
-330,000
162,000
Change In Accrued Expense
-96,000
166,000
209,000
131,000
Change In Payable
-346,000
1,280,000
-539,000
31,000
Change In Account Payable
-346,000
1,280,000
-539,000
31,000
Change In Inventory
-717,000
-735,000
35,000
-361,000
Change In Receivables
-46,000
-760,000
-176,000
-840,000
Changes In Account Receivables
-46,000
-760,000
-176,000
-840,000
Other Non Cash Items
179,000
149,000
82,000
-69,000
Stock Based Compensation
148,000
151,000
130,000
115,000
Asset Impairment Charge
285,000
52,000
12,000
386,000
Deferred Tax
178,000
276,000
203,000
187,000
Deferred Income Tax
178,000
276,000
203,000
187,000
Depreciation Amortization Depletion
5,682,000
5,165,000
4,385,000
4,164,000
Operating Gains Losses
-437,000
-1,012,000
-453,000
-330,000
Earnings Losses From Equity Investments
-419,000
-379,000
-383,000
-257,000
Gain Loss On Investment Securities
-52,000
-59,000
-68,000
-73,000
Gain Loss On Sale Of Business
0
-586,000
0
0
Net Income From Continuing Operations
5,708,000
6,565,000
5,294,000
5,868,000
3/7
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
$16.49
Margin of Safety
0%
Market Cap / Net Assets
1.3x
Net Assets: $49.3B
Warren's Owner Earnings
$16.4B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/7 — Speculative 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.
$85.5B
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.
1.22x
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.
7.12%
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $1.40 to $1.21 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.
-13.6% 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.
15.6x
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.
1.88x P/B (P/E×P/B: 29.3)
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 — $85.5Bvs > $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 — 1.22xvs 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 — 7.12%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 $1.40 to $1.21 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 — 15.6xvs 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 Energy Transfer LP 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
$-21.44
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
$30.07
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
5.8%
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
142.2%
86.5%
79.6%
71.1%
N/A
Repurchase of Capital Stock
-$500M
-$3.5B
$0M
$0M
N/A
Free Cash Flow
$3.8B▼
$7.3B▲
$6.4B▲
$5.7B•
N/A•
Warren's Owner Earnings
$16.4B
$14.1B
$11.5B
$12.3B
N/A
Peers & Industry
No auto-detected peers for Oil & Gas Midstream. You can manually compare ET 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
10.30%
High — management has strong skin in the game
Return on Equity (ROE)
12.9%
Adequate — returns are moderate
Return on Assets (ROA)
3.1%
Fair — average asset utilization
Share Buybacks (Latest Year)
$500M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+15.7% YoY
Debt is growing — management is leveraging up
Leadership Team
Marshall McCrea III
Co-CEO & Director of LE GP, LLC
Age 66
Pay: $4,297,267
0.097% of net income
Thomas Long CPA
Co-CEO & Director of LE GP, LLC
Age 68
Pay: $4,296,767
0.097% of net income
Dylan Bramhall
Executive VP & Group Chief Financial Officer of LE GP, LLC
Age 48
Pay: $1,682,356
0.038% of net income
Kelcy Warren
Executive Chairman of LE GP, LLC
Age 69
Pay: $6,392
0.000% of net income
Daniel Wentworth
Executive Vice President of Operations
Top Institutional Holders
Institution
% Owned
Shares
Morgan Stanley
2.53%
87,230,414
Alps Advisors Inc.
2.50%
85,957,579
JPMORGAN CHASE & CO
2.10%
72,210,991
Goldman Sachs Group Inc
1.76%
60,419,647
Invesco Ltd.
1.63%
56,091,478
Tortoise Capital Advisors, LLC
1.15%
39,462,878
UBS Group AG
0.90%
30,973,018
Blackstone Inc
0.90%
31,120,745
Risk Analysis
Beta (Market Risk)
0.54
Low volatility — more stable than the market
Short Interest
1.0% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.42x
Moderate leverage
Current Ratio
1.17x
Adequate liquidity
52-Week Price Range
Low: $16.18Current: $18.75High: $20.70
Currently at 57% of 52-week range
Energy Transfer LP (ET) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $16.49. Margin of safety: 0%. Gross profit margin: 19.1%. Operating margin: 10.9%. Net margin: 5.2%. Market cap: $64.5B. 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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