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 Margin10.7%
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 Margin4.5%
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 Debt56.7 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-$66.1B
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$3.2B
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-Book1.87x
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$1.5B
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 Income152.8%
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$4.8B
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 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 111% premium to its Graham Number of $8.88. 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
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
18.1%▲
17.4%•
N/A
Operating Margin %
10.7%▲
9.3%•
N/A
Net Income %
4.5%▲
3.7%•
N/A
Diluted EPS
0.35▲
0.25•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$147.5B
$141.3B
N/A
Total Debt
$71.1B▲
$70.1B•
N/A
Working Capital
$3.2B▼
$3.3B•
N/A
Years to Pay Debt
56.70
75.53
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$1.5B▲
-$225M•
N/A
Owner Earnings
$4.8B
N/A
N/A
CapEx % of Net Income
152.8%
228.8%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
-448
-28,993
Tax Rate For Calcs
0
0
Normalized EBITDA
4,648,000
4,062,000
Total Unusual Items
-7,000
-280,000
Total Unusual Items Excluding Goodwill
-7,000
-280,000
Net Income From Continuing Operation Net Minority Interest
1,254,000
928,000
Reconciled Depreciation
1,583,000
1,491,000
Reconciled Cost Of Revenue
22,732,000
20,907,000
EBITDA
4,641,000
3,782,000
EBIT
3,058,000
2,291,000
Net Interest Income
-947,000
-910,000
Interest Expense
947,000
910,000
Normalized Income
1,260,552
1,179,007
Net Income From Continuing And Discontinued Operation
1,254,000
928,000
Total Expenses
24,788,000
22,967,000
Total Operating Income As Reported
2,983,000
2,076,000
Diluted Average Shares
3,457,400
3,449,300
Basic Average Shares
3,440,600
3,434,800
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
1,194,000
867,000
Average Dilution Earnings
0
-1,000
Net Income Common Stockholders
1,194,000
868,000
Otherunder Preferred Stock Dividend
59,000
59,000
Preferred Stock Dividends
1,000
1,000
Net Income
1,254,000
928,000
Minority Interests
-722,000
-310,000
Net Income Including Noncontrolling Interests
1,976,000
1,238,000
Net Income Continuous Operations
1,976,000
1,238,000
Tax Provision
135,000
143,000
Pretax Income
2,111,000
1,381,000
Other Income Expense
75,000
-62,000
Other Non Operating Income Expenses
-28,000
112,000
Special Income Charges
-7,000
-280,000
Gain On Sale Of Ppe
0
-12,000
Other Special Charges
7,000
3,000
Write Off
0
Impairment Of Capital Assets
Earnings From Equity Interest
110,000
106,000
Gain On Sale Of Security
0
Net Non Operating Interest Income Expense
-947,000
-910,000
Interest Expense Non Operating
947,000
910,000
Operating Income
2,983,000
2,353,000
Operating Expense
2,056,000
2,060,000
Other Operating Expenses
1,695,000
1,693,000
Selling General And Administration
361,000
367,000
Gross Profit
5,039,000
4,413,000
Cost Of Revenue
22,732,000
20,907,000
Total Revenue
27,771,000
25,320,000
Operating Revenue
27,133,000
24,766,000
Balance Sheet
2026
2025
2024
Ordinary Shares Number
3,441,100
3,439,987
Share Issued
3,441,100
3,439,987
Net Debt
68,385,000
67,061,000
Total Debt
71,106,000
70,093,000
Tangible Book Value
21,563,000
21,476,000
Invested Capital
103,798,000
102,699,000
Working Capital
3,220,000
3,278,000
Net Tangible Assets
-12,899,000
-12,890,000
Capital Lease Obligations
1,770,000
1,760,000
Common Stock Equity
34,462,000
34,366,000
Total Capitalization
103,779,000
102,674,000
Total Equity Gross Minority Interest
49,989,000
49,260,000
Minority Interest
15,527,000
14,894,000
Gains Losses Not Affecting Retained Earnings
72,000
82,000
Total Partnership Capital
34,462,000
34,366,000
General Partnership Capital
-2,000
-2,000
Limited Partnership Capital
34,392,000
34,286,000
Total Liabilities Net Minority Interest
97,493,000
92,026,000
Total Non Current Liabilities Net Minority Interest
78,450,000
77,071,000
Other Non Current Liabilities
1,973,000
1,941,000
Non Current Deferred Liabilities
5,591,000
5,307,000
Non Current Deferred Taxes Liabilities
5,591,000
5,307,000
Long Term Debt And Capital Lease Obligation
70,886,000
69,823,000
Long Term Capital Lease Obligation
1,569,000
1,515,000
Long Term Debt
69,317,000
68,308,000
Current Liabilities
19,043,000
14,955,000
Other Current Liabilities
36,000
1,052,000
Current Deferred Liabilities
709,000
682,000
Current Deferred Revenue
709,000
682,000
Current Debt And Capital Lease Obligation
220,000
270,000
Current Capital Lease Obligation
201,000
245,000
Current Debt
19,000
25,000
Other Current Borrowings
19,000
25,000
Payables And Accrued Expenses
18,787,000
12,924,000
Current Accrued Expenses
5,635,000
2,484,000
Interest Payable
878,000
685,000
Payables
13,152,000
10,440,000
Other Payable
86,000
90,000
Dueto Related Parties Current
17,000
41,000
Total Tax Payable
844,000
737,000
Accounts Payable
13,135,000
9,469,000
Total Assets
147,482,000
141,286,000
Total Non Current Assets
125,219,000
123,053,000
Other Non Current Assets
2,689,000
2,236,000
Defined Pension Benefit
209,000
188,000
Non Current Deferred Assets
146,000
151,000
Investments And Advances
3,646,000
3,589,000
Long Term Equity Investment
3,646,000
3,589,000
Goodwill And Other Intangible Assets
12,899,000
12,890,000
Other Intangible Assets
7,294,000
7,438,000
Goodwill
5,605,000
5,452,000
Net PPE
105,985,000
103,983,000
Accumulated Depreciation
-40,633,000
-39,141,000
Gross PPE
146,618,000
143,124,000
Construction In Progress
5,841,000
4,633,000
Other Properties
146,618,000
117,385,000
Machinery Furniture Equipment
8,399,000
7,869,000
Buildings And Improvements
8,448,000
4,688,000
Land And Improvements
3,051,000
1,675,000
Current Assets
22,263,000
18,233,000
Other Current Assets
757,000
472,000
Hedging Assets Current
20,000
52,000
Prepaid Assets
216,000
150,000
Inventory
4,645,000
4,770,000
Finished Goods
3,609,000
3,792,000
Raw Materials
1,036,000
978,000
Receivables
15,890,000
11,451,000
Duefrom Related Parties Current
166,000
119,000
Taxes Receivable
38,000
57,000
Accounts Receivable
15,686,000
11,275,000
Cash Cash Equivalents And Short Term Investments
951,000
1,272,000
Cash And Cash Equivalents
951,000
1,272,000
Cash Flow
2026
2025
2024
Free Cash Flow
1,462,000
-225,000
Repurchase Of Capital Stock
0
0
Repayment Of Debt
-11,616,000
-4,585,000
Issuance Of Debt
12,216,000
5,995,000
Capital Expenditure
-1,916,000
-2,123,000
End Cash Position
951,000
1,272,000
Beginning Cash Position
1,272,000
3,574,000
Changes In Cash
-321,000
-2,302,000
Financing Cash Flow
-1,165,000
-254,000
Cash Flow From Continuing Financing Activities
-1,165,000
-254,000
Net Other Financing Charges
-597,000
-443,000
Cash Dividends Paid
-1,168,000
-1,221,000
Net Preferred Stock Issuance
0
0
Preferred Stock Payments
0
0
Net Issuance Payments Of Debt
600,000
1,410,000
Net Long Term Debt Issuance
600,000
1,410,000
Long Term Debt Payments
-11,616,000
-4,585,000
Long Term Debt Issuance
12,216,000
5,995,000
Investing Cash Flow
-2,534,000
-3,946,000
Cash Flow From Continuing Investing Activities
-2,534,000
-3,946,000
Net Other Investing Changes
54,000
94,000
Dividends Received Cfi
39,000
-16,000
Net Business Purchase And Sale
-711,000
-1,901,000
Sale Of Business
0
Purchase Of Business
-711,000
-1,901,000
Capital Expenditure Reported
-1,916,000
-2,123,000
Operating Cash Flow
3,378,000
1,898,000
Cash Flow From Continuing Operating Activities
3,378,000
1,898,000
Dividend Received Cfo
39,000
146,000
Change In Working Capital
216,000
-1,493,000
Change In Other Working Capital
58,000
-37,000
Change In Other Current Liabilities
13,000
-519,000
Change In Other Current Assets
52,000
-162,000
Change In Payables And Accrued Expense
3,922,000
32,000
Change In Accrued Expense
289,000
-606,000
Change In Payable
3,633,000
638,000
Change In Account Payable
3,633,000
638,000
Change In Inventory
578,000
-517,000
Change In Receivables
-4,407,000
-290,000
Changes In Account Receivables
-4,407,000
-290,000
Other Non Cash Items
-455,000
207,000
Stock Based Compensation
42,000
38,000
Asset Impairment Charge
0
277,000
Deferred Tax
93,000
110,000
Deferred Income Tax
93,000
110,000
Depreciation Amortization Depletion
1,583,000
Operating Gains Losses
-116,000
-116,000
Earnings Losses From Equity Investments
-110,000
-106,000
Gain Loss On Investment Securities
-13,000
-13,000
Gain Loss On Sale Of Business
0
12,000
Net Income From Continuing Operations
1,976,000
1,238,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $21.0B▲ $27.8B+32.1%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 19.4%▲ 18.1%-1.3pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 14.2%▲ 10.7%-3.4pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 6.3%▼ 4.5%-1.8pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$27.8B/qtr (≈$111.1B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.17x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$1.5B
vs Positive
Operating Cash Flow
$3.4B
Latest quarter · Buffett's cash reality check
ROIC
1.8%
Based on latest annual operating income
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.
Market Cap / Net Assets
1.3x
Net Assets: $50.0B
Asset Context — Oil & Gas Midstream
Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
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)
3.6%
Weak — poor returns on equity
Return on Assets (ROA)
0.9%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$500M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+1.4% YoY
Debt is roughly stable
Leadership Team
Marshall McCrea III
Co-CEO & Director of LE GP, LLC
Age 66
Pay: $4,297,267
0.343% of net income
Thomas Long CPA
Co-CEO & Director of LE GP, LLC
Age 68
Pay: $4,296,767
0.343% of net income
Dylan Bramhall
Executive VP & Group Chief Financial Officer of LE GP, LLC
Age 48
Pay: $1,682,356
0.134% of net income
Kelcy Warren
Executive Chairman of LE GP, LLC
Age 69
Pay: $6,392
0.001% 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: $8.88. Margin of safety: 0%. Gross profit margin: 18.1%. Operating margin: 10.7%. Net margin: 4.5%. 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.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.