ENBRIDGE INC - ENBCN 5.85792 PERP (ENB-PF-U.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENB-PF-U - CA29250N7909
24.25 USD
+0.01 (+0.04%)
We assign a fundamental rating of 5 out of 10 to ENB-PF-U. ENB-PF-U was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. ENB-PF-U scores excellent on profitability, but there are concerns on its financial health. ENB-PF-U scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ENB-PF-U also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ENB-PF-U was profitable.
- In the past year ENB-PF-U had a positive cash flow from operations.
- ENB-PF-U had positive earnings in each of the past 5 years.
- In the past 5 years ENB-PF-U always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.59%, ENB-PF-U is in the better half of the industry, outperforming 60.68% of the companies in the same industry.
- ENB-PF-U has a Return On Equity of 8.61%. This is in the better half of the industry: ENB-PF-U outperforms 68.93% of its industry peers.
- ENB-PF-U has a better Return On Invested Capital (4.12%) than 66.02% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ENB-PF-U is below the industry average of 6.62%.
- The 3 year average ROIC (3.99%) for ENB-PF-U is below the current ROIC(4.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 8.61% | ||
| ROIC | 4.12% |
ROA(3y)2.33%
ROA(5y)2.46%
ROE(3y)7.16%
ROE(5y)7.18%
ROIC(3y)3.99%
ROIC(5y)4.01%
1.3 Margins
- ENB-PF-U has a better Profit Margin (8.74%) than 66.02% of its industry peers.
- ENB-PF-U's Profit Margin has declined in the last couple of years.
- ENB-PF-U has a better Operating Margin (16.91%) than 67.48% of its industry peers.
- In the last couple of years the Operating Margin of ENB-PF-U has grown nicely.
- ENB-PF-U has a better Gross Margin (41.11%) than 60.68% of its industry peers.
- In the last couple of years the Gross Margin of ENB-PF-U has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.91% | ||
| PM (TTM) | 8.74% | ||
| GM | 41.11% |
OM growth 3Y2.88%
OM growth 5Y2.35%
PM growth 3Y-8.55%
PM growth 5Y-2.33%
GM growth 3Y5.15%
GM growth 5Y4.19%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENB-PF-U is destroying value.
- ENB-PF-U has more shares outstanding than it did 1 year ago.
- ENB-PF-U has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ENB-PF-U is higher compared to a year ago.
2.2 Solvency
- ENB-PF-U has an Altman-Z score of 0.53. This is a bad value and indicates that ENB-PF-U is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of ENB-PF-U (0.53) is comparable to the rest of the industry.
- The Debt to FCF ratio of ENB-PF-U is 25.58, which is on the high side as it means it would take ENB-PF-U, 25.58 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 25.58, ENB-PF-U is doing good in the industry, outperforming 63.59% of the companies in the same industry.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that ENB-PF-U has dependencies on debt financing.
- ENB-PF-U has a worse Debt to Equity ratio (1.56) than 67.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.58
WACC7.13%
2.3 Liquidity
- ENB-PF-U has a Current Ratio of 0.80. This is a bad value and indicates that ENB-PF-U is not financially healthy enough and could expect problems in meeting its short term obligations.
- ENB-PF-U's Current ratio of 0.80 is in line compared to the rest of the industry. ENB-PF-U outperforms 50.49% of its industry peers.
- ENB-PF-U has a Quick Ratio of 0.80. This is a bad value and indicates that ENB-PF-U is not financially healthy enough and could expect problems in meeting its short term obligations.
- ENB-PF-U has a Quick ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.43% over the past year.
- ENB-PF-U shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
- ENB-PF-U shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.29%.
- ENB-PF-U shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)7.43%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%-16.36%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%-1.63%
3.2 Future
- The Earnings Per Share is expected to grow by 7.06% on average over the next years.
- ENB-PF-U is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.24% yearly.
EPS Next Y4.67%
EPS Next 2Y5.39%
EPS Next 3Y6.44%
EPS Next 5Y7.06%
Revenue Next Year34.15%
Revenue Next 2Y15.77%
Revenue Next 3Y11.41%
Revenue Next 5Y7.24%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ENB-PF-U is valuated reasonably with a Price/Earnings ratio of 8.39.
- Based on the Price/Earnings ratio, ENB-PF-U is valued cheaply inside the industry as 83.01% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ENB-PF-U is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.80, the valuation of ENB-PF-U can be described as very cheap.
- ENB-PF-U's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENB-PF-U is cheaper than 83.01% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ENB-PF-U is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 7.8 |
4.2 Price Multiples
- 62.62% of the companies in the same industry are more expensive than ENB-PF-U, based on the Enterprise Value to EBITDA ratio.
- 75.24% of the companies in the same industry are more expensive than ENB-PF-U, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
- ENB-PF-U's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ENB-PF-U may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)7.58
EPS Next 2Y5.39%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.93%, ENB-PF-U is a good candidate for dividend investing.
- ENB-PF-U's Dividend Yield is rather good when compared to the industry average which is at 3.29. ENB-PF-U pays more dividend than 89.32% of the companies in the same industry.
- ENB-PF-U's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
5.2 History
- The dividend of ENB-PF-U has a limited annual growth rate of 4.10%.
- ENB-PF-U has been paying a dividend for at least 10 years, so it has a reliable track record.
- ENB-PF-U has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.1%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
- ENB-PF-U pays out 152.61% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of ENB-PF-U is growing, but earnings are growing more, so the dividend growth is sustainable.
DP152.61%
EPS Next 2Y5.39%
EPS Next 3Y6.44%
ENBRIDGE INC - ENBCN 5.85792 PERP / ENB-PF-U.CA FAQ
What is the ChartMill fundamental rating of ENBRIDGE INC - ENBCN 5.85792 PERP (ENB-PF-U.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ENB-PF-U.CA.
What is the valuation status of ENBRIDGE INC - ENBCN 5.85792 PERP (ENB-PF-U.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to ENBRIDGE INC - ENBCN 5.85792 PERP (ENB-PF-U.CA). This can be considered as Undervalued.
How profitable is ENBRIDGE INC - ENBCN 5.85792 PERP (ENB-PF-U.CA) stock?
ENBRIDGE INC - ENBCN 5.85792 PERP (ENB-PF-U.CA) has a profitability rating of 7 / 10.
What is the valuation of ENBRIDGE INC - ENBCN 5.85792 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ENBRIDGE INC - ENBCN 5.85792 PERP (ENB-PF-U.CA) is 8.39 and the Price/Book (PB) ratio is 0.81.
Can you provide the financial health for ENB-PF-U stock?
The financial health rating of ENBRIDGE INC - ENBCN 5.85792 PERP (ENB-PF-U.CA) is 2 / 10.