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 has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ENB-PF-U. Finally ENB-PF-U also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ENB-PF-U had positive earnings in the past year.
- In the past year ENB-PF-U had a positive cash flow from operations.
- Each year in the past 5 years ENB-PF-U has been profitable.
- ENB-PF-U had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ENB-PF-U has a better Return On Assets (2.59%) than 60.75% of its industry peers.
- Looking at the Return On Equity, with a value of 8.61%, ENB-PF-U is in the better half of the industry, outperforming 68.69% of the companies in the same industry.
- ENB-PF-U has a better Return On Invested Capital (4.12%) than 66.36% of its industry peers.
- ENB-PF-U had an Average Return On Invested Capital over the past 3 years of 3.99%. This 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
- Looking at the Profit Margin, with a value of 8.74%, ENB-PF-U is in the better half of the industry, outperforming 65.42% of the companies in the same industry.
- In the last couple of years the Profit Margin of ENB-PF-U has declined.
- ENB-PF-U's Operating Margin of 16.91% is fine compared to the rest of the industry. ENB-PF-U outperforms 67.29% of its industry peers.
- ENB-PF-U's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 41.11%, ENB-PF-U is doing good in the industry, outperforming 60.28% of the companies in the same industry.
- 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
- ENB-PF-U has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ENB-PF-U has more shares outstanding
- ENB-PF-U has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ENB-PF-U has a worse debt to assets ratio.
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.
- ENB-PF-U has a debt to FCF ratio of 25.58. This is a negative value and a sign of low solvency as ENB-PF-U would need 25.58 years to pay back of all of its debts.
- ENB-PF-U has a better Debt to FCF ratio (25.58) than 64.02% of its industry peers.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that ENB-PF-U has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.56, ENB-PF-U is doing worse than 67.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.59
WACC6.99%
2.3 Liquidity
- A Current Ratio of 0.80 indicates that ENB-PF-U may have some problems paying its short term obligations.
- The Current ratio of ENB-PF-U (0.80) is comparable to the rest of the industry.
- 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 comparable to the rest of the industry.
| 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.
- The Revenue has grown by 32.29% in the past year. This is a very strong growth!
- Measured over the past years, ENB-PF-U shows a small growth in Revenue. The Revenue has been growing by 1.32% on average per year.
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
- ENB-PF-U is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.06% yearly.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.39, which indicates a very decent valuation of ENB-PF-U.
- ENB-PF-U's Price/Earnings ratio is rather cheap when compared to the industry. ENB-PF-U is cheaper than 82.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ENB-PF-U to the average of the S&P500 Index (27.21), we can say ENB-PF-U is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.80, which indicates a rather cheap valuation of ENB-PF-U.
- ENB-PF-U's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENB-PF-U is cheaper than 82.71% 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
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENB-PF-U indicates a somewhat cheap valuation: ENB-PF-U is cheaper than 62.62% of the companies listed in the same industry.
- ENB-PF-U's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ENB-PF-U is cheaper than 74.77% of the companies in the same industry.
| 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.
- ENB-PF-U has a very decent profitability rating, which 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.
- Compared to an average industry Dividend Yield of 3.29, ENB-PF-U pays a better dividend. On top of this ENB-PF-U pays more dividend than 89.25% of the companies listed 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.
- As ENB-PF-U did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.1%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
- 152.61% of the earnings are spent on dividend by ENB-PF-U. This is not a sustainable payout ratio.
- ENB-PF-U's earnings are growing more than its dividend. This makes the dividend growth 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.