ENBRIDGE INC - ENBCN 5 1/2 PERP (ENB-PR-A.CA) Stock Fundamental Analysis
TSX:ENB-PR-A - Toronto Stock Exchange - CA29250N2041 - Currency: CAD
We assign a fundamental rating of 5 out of 10 to ENB-PR-A. ENB-PR-A was compared to 219 industry peers in the Oil, Gas & Consumable Fuels industry. While ENB-PR-A is still in line with the averages on profitability rating, there are concerns on its financial health. ENB-PR-A is valued quite cheap, while showing a decent growth score. This is a good combination! Finally ENB-PR-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ENB-PR-A was profitable.
ENB-PR-A had a positive operating cash flow in the past year.
Each year in the past 5 years ENB-PR-A has been profitable.
ENB-PR-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.31%, ENB-PR-A is in line with its industry, outperforming 56.16% of the companies in the same industry.
ENB-PR-A's Return On Equity of 7.67% is fine compared to the rest of the industry. ENB-PR-A outperforms 63.93% of its industry peers.
The Return On Invested Capital of ENB-PR-A (3.85%) is comparable to the rest of the industry.
ENB-PR-A had an Average Return On Invested Capital over the past 3 years of 3.99%. This is below the industry average of 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 7.67% | ||
| ROIC | 3.85% |
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-PR-A has a better Profit Margin (9.45%) than 64.38% of its industry peers.
ENB-PR-A's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 18.31%, ENB-PR-A is doing good in the industry, outperforming 63.47% of the companies in the same industry.
In the last couple of years the Operating Margin of ENB-PR-A has grown nicely.
ENB-PR-A has a better Gross Margin (45.63%) than 62.10% of its industry peers.
ENB-PR-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.31% | ||
| PM (TTM) | 9.45% | ||
| GM | 45.63% |
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-PR-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ENB-PR-A has more shares outstanding than it did 1 year ago.
ENB-PR-A has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ENB-PR-A has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.41, we must say that ENB-PR-A is in the distress zone and has some risk of bankruptcy.
ENB-PR-A has a Altman-Z score (0.41) which is in line with its industry peers.
ENB-PR-A has a debt to FCF ratio of 17.93. This is a negative value and a sign of low solvency as ENB-PR-A would need 17.93 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 17.93, ENB-PR-A is doing good in the industry, outperforming 61.19% of the companies in the same industry.
ENB-PR-A has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
ENB-PR-A has a Debt to Equity ratio of 1.43. This is in the lower half of the industry: ENB-PR-A underperforms 73.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.59
WACC6.56%
2.3 Liquidity
ENB-PR-A has a Current Ratio of 0.55. This is a bad value and indicates that ENB-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ENB-PR-A (0.55) is worse than 61.19% of its industry peers.
ENB-PR-A has a Quick Ratio of 0.55. This is a bad value and indicates that ENB-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ENB-PR-A (0.49) is worse than 63.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.42% over the past year.
The Earnings Per Share has been growing slightly by 1.12% on average over the past years.
The Revenue has grown by 22.51% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 1.32% on average over the past years.
EPS 1Y (TTM)0.42%
EPS 3Y0.62%
EPS 5Y1.12%
EPS Q2Q%17.46%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%45.52%
3.2 Future
Based on estimates for the next years, ENB-PR-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.10% on average per year.
ENB-PR-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.66% yearly.
EPS Next Y10.18%
EPS Next 2Y7.87%
EPS Next 3Y7.54%
EPS Next 5Y8.1%
Revenue Next Year15.72%
Revenue Next 2Y9.16%
Revenue Next 3Y6.92%
Revenue Next 5Y1.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 8.39 indicates a reasonable valuation of ENB-PR-A.
Based on the Price/Earnings ratio, ENB-PR-A is valued a bit cheaper than 73.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ENB-PR-A is valued rather cheaply.
The Price/Forward Earnings ratio is 7.61, which indicates a rather cheap valuation of ENB-PR-A.
ENB-PR-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ENB-PR-A is cheaper than 69.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, ENB-PR-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENB-PR-A.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENB-PR-A indicates a somewhat cheap valuation: ENB-PR-A is cheaper than 73.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.03 | ||
| EV/EBITDA | 10.06 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ENB-PR-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.82
PEG (5Y)7.49
EPS Next 2Y7.87%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.33%, ENB-PR-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.94, ENB-PR-A pays a better dividend. On top of this ENB-PR-A pays more dividend than 88.58% of the companies listed in the same industry.
ENB-PR-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
5.2 History
The dividend of ENB-PR-A has a limited annual growth rate of 4.10%.
ENB-PR-A has been paying a dividend for at least 10 years, so it has a reliable track record.
ENB-PR-A has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.1%
Div Incr Years0
Div Non Decr Years25
5.3 Sustainability
163.51% of the earnings are spent on dividend by ENB-PR-A. This is not a sustainable payout ratio.
The dividend of ENB-PR-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP163.51%
EPS Next 2Y7.87%
EPS Next 3Y7.54%
ENBRIDGE INC - ENBCN 5 1/2 PERP
TSX:ENB-PR-A (3/7/2025, 7:00:00 PM)
23.5
+0.1 (+0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap51.21B
Analysts71.11
Price Target24.59 (4.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
Yearly Dividend3.84
Dividend Growth(5Y)4.1%
DP163.51%
Div Incr Years0
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.04%
EPS beat(4)1
Avg EPS beat(4)0.01%
Min EPS beat(4)-9.75%
Max EPS beat(4)11.79%
EPS beat(8)2
Avg EPS beat(8)-0.83%
EPS beat(12)3
Avg EPS beat(12)-2.13%
EPS beat(16)6
Avg EPS beat(16)-0.19%
Revenue beat(2)2
Avg Revenue beat(2)114.59%
Min Revenue beat(2)111.46%
Max Revenue beat(2)117.73%
Revenue beat(4)4
Avg Revenue beat(4)83.57%
Min Revenue beat(4)8.67%
Max Revenue beat(4)117.73%
Revenue beat(8)4
Avg Revenue beat(8)33.38%
Revenue beat(12)6
Avg Revenue beat(12)22.25%
Revenue beat(16)9
Avg Revenue beat(16)19.73%
PT rev (1m)7.19%
PT rev (3m)9.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.96%
EPS NY rev (1m)0.5%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)47.43%
Revenue NY rev (3m)64.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 7.61 | ||
| P/S | 0.96 | ||
| P/FCF | 9.03 | ||
| P/OCF | 4.06 | ||
| P/B | 0.78 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 10.06 |
EPS(TTM)2.8
EY11.91%
EPS(NY)3.09
Fwd EY13.14%
FCF(TTM)2.6
FCFY11.07%
OCF(TTM)5.78
OCFY24.61%
SpS24.54
BVpS30.24
TBVpS11.34
PEG (NY)0.82
PEG (5Y)7.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 7.67% | ||
| ROCE | 5.02% | ||
| ROIC | 3.85% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 4.94% | ||
| OM | 18.31% | ||
| PM (TTM) | 9.45% | ||
| GM | 45.63% | ||
| FCFM | 10.6% |
ROA(3y)2.33%
ROA(5y)2.46%
ROE(3y)7.16%
ROE(5y)7.18%
ROIC(3y)3.99%
ROIC(5y)4.01%
ROICexc(3y)4.07%
ROICexc(5y)4.06%
ROICexgc(3y)5.22%
ROICexgc(5y)5.26%
ROCE(3y)5.22%
ROCE(5y)5.24%
ROICexcg growth 3Y-2.31%
ROICexcg growth 5Y-2.5%
ROICexc growth 3Y-1.04%
ROICexc growth 5Y-1.82%
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%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Debt/EBITDA | 6.28 | ||
| Cap/Depr | 134.12% | ||
| Cap/Sales | 12.96% | ||
| Interest Coverage | 2.37 | ||
| Cash Conversion | 84.22% | ||
| Profit Quality | 112.21% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.41 |
F-Score4
WACC6.56%
ROIC/WACC0.59
Cap/Depr(3y)117.17%
Cap/Depr(5y)142.6%
Cap/Sales(3y)11.06%
Cap/Sales(5y)12.95%
Profit Quality(3y)173.15%
Profit Quality(5y)135.79%
High Growth Momentum
Growth
EPS 1Y (TTM)0.42%
EPS 3Y0.62%
EPS 5Y1.12%
EPS Q2Q%17.46%
EPS Next Y10.18%
EPS Next 2Y7.87%
EPS Next 3Y7.54%
EPS Next 5Y8.1%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%45.52%
Revenue Next Year15.72%
Revenue Next 2Y9.16%
Revenue Next 3Y6.92%
Revenue Next 5Y1.66%
EBIT growth 1Y10%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year70.34%
EBIT Next 3Y23.67%
EBIT Next 5Y16.85%
FCF growth 1Y-39.2%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y-11.27%
OCF growth 3Y10.83%
OCF growth 5Y6.04%