Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 17 Aug 2026
EPD· Energy
Enterprise Products Partners L.P.
Enterprise Products Partners L.P.'s low ROIC and high leverage make it unattractive despite a strong dividend yield.
Buffett fit
Weak fit
Owner
18
Durability
82
Management
42
Price
57
Score updated 23 Oct 2026 · analysis from 17 Aug 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Energy stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Enterprise Products Partners, we'd focus on improving the , which at 10.7% is below the sector's top-quintile.
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The business has shown profitability over the last five years, but its of 9.4% over the same period is below the sector's top-quintile.
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The share count has been stable with a CAGR of 0.06%, and the yield is negligible at 0.29%.
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The ratio of 13.7 and an yield of 3.72% suggest the stock is not a bargain.
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- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Dividend yield of 5.94% provides steady income.
- 2 of 13.9% reflects operational efficiency.
- 3Stable share count with a 5-year CAGR of 0.06%.
- 4Consistent profitability over the last five years.
Concerns
5- 1 of 10.7% is below the sector's top-quintile of 11.8%.
- 2Net debt/EBITDA ratio of 3.37 suggests high .
- 3Interest coverage ratio of 4.9 is below the preferred 5x.
- 4Current ratio of 0.91 indicates potential liquidity issues.
Price history
$36.52+61.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Enterprise Products Partners L.P. provides midstream energy services, operating through segments like NGL Pipelines & Services and Crude Oil Pipelines & Services. It earns revenue by transporting and storing natural gas, crude oil, and petrochemicals. With a market cap of $84B and revenue of $52.6B, its is 13.9%. The unit economics are challenged by high capital requirements and industry cyclicality.
How this analysis has moved
The call has held across 4 reviews.
Sep 27, 2026 → Oct 16, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Energy
Questions about Enterprise Products Partners L.P.
- Is Enterprise Products Partners L.P. undervalued?
- Would Buffett buy Enterprise Products Partners L.P.?
- How strong is Enterprise Products Partners L.P.'s competitive advantage?
- Is Enterprise Products Partners L.P. financially healthy?
- Is Enterprise Products Partners L.P.'s dividend safe?
- Is Enterprise Products Partners L.P. halal?
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