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How to buy Energy Transfer stock | 5.44

Own Energy Transfer stock in just a few minutes.

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Energy Transfer LP is an oil & gas midstream business based in the US. Energy Transfer shares (ET) are listed on the NYSE and all prices are listed in US Dollars. Energy Transfer employs 12,812 staff and has a trailing 12-month revenue of around USD$46.2 billion.

How to buy shares in Energy Transfer

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Energy Transfer. Find the stock by name or ticker symbol: ET. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Energy Transfer reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$5.44, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Energy Transfer, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Energy Transfer. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Energy Transfer's share price?

Since the stock market crash in March caused by coronavirus, Energy Transfer's share price has had significant negative movement.

Its last market close was USD$5.44, which is 55.19% down on its pre-crash value of USD$12.14 and 45.07% up on the lowest point reached during the March crash when the shares fell as low as USD$3.75.

If you had bought USD$1,000 worth of Energy Transfer shares at the start of February 2020, those shares would have been worth USD$374.24 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$425.03.

Energy Transfer share price

Use our graph to track the performance of ET stocks over time.

Energy Transfer shares at a glance

Information last updated 2020-10-21.
Latest market close USD$5.44
52-week range USD$3.75 - USD$13.86
50-day moving average USD$5.882
200-day moving average USD$6.8009
Wall St. target price USD$10
PE ratio 11.3585
Dividend yield USD$1.22 (20.75%)
Earnings per share (TTM) USD$0.522

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Energy Transfer stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Energy Transfer price performance over time

Historical closes compared with the close of $5.44 from 2020-11-16

1 week (2020-11-20) -10.53%
1 month (2020-10-27) -3.72%
3 months (2020-08-27) -16.69%
6 months (2020-05-27) -34.14%
1 year (2019-11-27) -54.17%
2 years (2018-11-27) -62.46%
3 years (2017-11-27) -66.21%
5 years (2015-11-27) -70.86%

Is Energy Transfer under- or over-valued?

Valuing Energy Transfer stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Energy Transfer's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Energy Transfer's P/E ratio

Energy Transfer's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 11x. In other words, Energy Transfer shares trade at around 11x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Energy Transfer's PEG ratio

Energy Transfer's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.6737. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Energy Transfer's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Energy Transfer's EBITDA

Energy Transfer's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$9.7 billion.

The EBITDA is a measure of a Energy Transfer's overall financial performance and is widely used to measure a its profitability.

Energy Transfer financials

Revenue TTM USD$46.2 billion
Operating margin TTM 13.73%
Gross profit TTM USD$11.4 billion
Return on assets TTM 4.25%
Return on equity TTM 6.89%
Profit margin 3.04%
Book value $7.353
Market capitalisation USD$16 billion

TTM: trailing 12 months

Shorting Energy Transfer shares

There are currently 65.3 million Energy Transfer shares held short by investors – that's known as Energy Transfer's "short interest". This figure is 27.4% up from 51.2 million last month.

There are a few different ways that this level of interest in shorting Energy Transfer shares can be evaluated.

Energy Transfer's "short interest ratio" (SIR)

Energy Transfer's "short interest ratio" (SIR) is the quantity of Energy Transfer shares currently shorted divided by the average quantity of Energy Transfer shares traded daily (recently around 18.1 million). Energy Transfer's SIR currently stands at 3.61. In other words for every 100,000 Energy Transfer shares traded daily on the market, roughly 3610 shares are currently held short.

However Energy Transfer's short interest can also be evaluated against the total number of Energy Transfer shares, or, against the total number of tradable Energy Transfer shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Energy Transfer's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Energy Transfer shares in existence, roughly 20 shares are currently held short) or 0.0281% of the tradable shares (for every 100,000 tradable Energy Transfer shares, roughly 28 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Energy Transfer.

Find out more about how you can short Energy Transfer stock.

Energy Transfer's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Energy Transfer.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Energy Transfer's total ESG risk score

Total ESG risk: 48.6

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Energy Transfer's overall score of 48.6 (as at 10/01/2020) is pretty weak – landing it in it in the 95th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Energy Transfer is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Energy Transfer's environmental score

Environmental score: 1/100

Energy Transfer's environmental score of 1 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Energy Transfer is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Energy Transfer's social score

Social score: 1/100

Energy Transfer's social score of 1 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Energy Transfer is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Energy Transfer's governance score

Governance score: 1/100

Energy Transfer's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that Energy Transfer is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Energy Transfer's controversy score

Controversy score: 5/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Energy Transfer scored a 5 out of 5 for controversy – the lowest score possible, reflecting that Energy Transfer's public profile has been damaged by multiple incidents.

Environmental, social, and governance (ESG) summary

Energy Transfer LP was last rated for ESG on: 2020-10-01.

Total ESG score 48.6
Total ESG percentile 95.28
Environmental score 1
Environmental score percentile 1
Social score 1
Social score percentile 1
Governance score 1
Governance score percentile 1
Level of controversy 5

Energy Transfer share dividends

Dividend payout ratio: 239.22% of net profits

Recently Energy Transfer has paid out, on average, around 239.22% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 20.75% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Energy Transfer shareholders could enjoy a 20.75% return on their shares, in the form of dividend payments. In Energy Transfer's case, that would currently equate to about $1.22 per share.

Energy Transfer's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Energy Transfer's most recent dividend payout was on 19 August 2020. The latest dividend was paid out to all shareholders who bought their shares by 6 August 2020 (the "ex-dividend date").

Have Energy Transfer's shares ever split?

Energy Transfer's shares were split on a 2:1 basis on 27 July 2015. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Energy Transfer shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Energy Transfer shares which in turn could have impacted Energy Transfer's share price.

Energy Transfer share price volatility

Over the last 12 months, Energy Transfer's shares have ranged in value from as little as $3.75 up to $13.86. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Energy Transfer's is 2.5554. This would suggest that Energy Transfer's shares are significantly more volatile than the average for this exchange and represent a higher risk.

Energy Transfer overview

Energy Transfer LP provides energy-related services. The company owns and operates approximately 9,400 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas; and 12,500 miles of interstate natural gas pipelines. It sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. The company also owns and operates natural gas gathering and natural gas liquid (NGL) pipelines, processing plants, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Kansas, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; and a natural gas gathering system in Ohio, as well as transports and supplies water to natural gas producers in Pennsylvania. In addition, it owns approximately 4,515 miles of NGL pipelines; NGL and propane fractionation facilities; NGL storage facilities with working storage capacity of approximately 50 million barrels (MMBbls); and other NGL storage assets and terminals with an aggregate storage capacity of approximately 13 MMBbls. Further, the company sells gasoline, middle distillates, and motor fuel at retail, as well as crude oil, NGLs, and refined products; operates convenience stores; and distributes motor fuels and other petroleum products. Additionally, it provides natural gas compression services; carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalties, and generates electrical power. 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 2002 and is headquartered in Dallas, Texas.

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