EPDNEUTRAL

Return on Equity (ROE)

19.8%

Higher than 73% of Energy sector peers

Updated 24h ago

Sector Performance

73th percentile

EPD

19.8%

Sector Median

11.8%

Sector Avg

6.6%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity; at 19.8%, Enterprise Products Partners L.P. earns about $0.198 for every dollar of equity.

This is well above the Energy sector median of 11.8%, placing the firm in the 73rd percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change is a positive 1.0%, rising from 19.6% to the current 19.8%. A high ROE paired with a slight upward quarterly trend suggests the partnership is maintaining strong profitability relative to its equity base, which reduces the risk of capital inefficiency. This level of performance supports the Neutral verdict by indicating the stock is fairly valued rather than offering a clear buy or sell signal based on this metric alone. The metric does not contradict the Neutral stance, as the ROE is strong but not accelerating dramatically, leaving overall assessment unchanged.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about EPD?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does EPD's Return on Equity (ROE) compare to its sector?

EPD's Return on Equity (ROE) of 19.8% compares to a Energy sector median of 11.8%, placing it in the 73th percentile.

Who are EPD's closest peers by Return on Equity (ROE)?

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), IMO (12.4%), SLB (12.8%), SHEL (10.2%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.