ENBRIDGE INC - ENBCN 6.696 PERP (ENB-PR-N.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENB-PR-N - CA29250N7743
24.36 CAD
+0.01 (+0.04%)
Taking everything into account, ENB-PR-N scores 5 out of 10 in our fundamental rating. ENB-PR-N was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. ENB-PR-N scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ENB-PR-N. Finally ENB-PR-N also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ENB-PR-N was profitable.
- ENB-PR-N had a positive operating cash flow in the past year.
- Each year in the past 5 years ENB-PR-N has been profitable.
- Each year in the past 5 years ENB-PR-N had a positive operating cash flow.
1.2 Ratios
- ENB-PR-N has a Return On Assets of 2.59%. This is in the better half of the industry: ENB-PR-N outperforms 60.75% of its industry peers.
- The Return On Equity of ENB-PR-N (8.61%) is better than 68.69% of its industry peers.
- The Return On Invested Capital of ENB-PR-N (4.12%) is better than 66.36% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ENB-PR-N is below the industry average of 6.53%.
- The last Return On Invested Capital (4.12%) for ENB-PR-N is above the 3 year average (3.99%), which is a sign of increasing profitability.
| 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-PR-N has a better Profit Margin (8.74%) than 65.42% of its industry peers.
- In the last couple of years the Profit Margin of ENB-PR-N has declined.
- ENB-PR-N has a better Operating Margin (16.91%) than 67.29% of its industry peers.
- ENB-PR-N's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 41.11%, ENB-PR-N is doing good in the industry, outperforming 60.28% of the companies in the same industry.
- ENB-PR-N's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENB-PR-N is destroying value.
- ENB-PR-N has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ENB-PR-N has more shares outstanding
- The debt/assets ratio for ENB-PR-N is higher compared to a year ago.
2.2 Solvency
- ENB-PR-N has an Altman-Z score of 0.53. This is a bad value and indicates that ENB-PR-N is not financially healthy and even has some risk of bankruptcy.
- ENB-PR-N has a Altman-Z score (0.53) which is in line with its industry peers.
- ENB-PR-N has a debt to FCF ratio of 25.58. This is a negative value and a sign of low solvency as ENB-PR-N would need 25.58 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 25.58, ENB-PR-N is in the better half of the industry, outperforming 64.02% of the companies in the same industry.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that ENB-PR-N has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.56, ENB-PR-N is not doing good in the industry: 67.29% of the companies in the same industry are doing better.
| 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-PR-N may have some problems paying its short term obligations.
- ENB-PR-N has a Current ratio of 0.80. This is comparable to the rest of the industry: ENB-PR-N outperforms 50.93% of its industry peers.
- A Quick Ratio of 0.68 indicates that ENB-PR-N may have some problems paying its short term obligations.
- ENB-PR-N 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.
- Measured over the past 5 years, ENB-PR-N shows a small growth in Earnings Per Share. The EPS has been growing by 1.11% on average per year.
- ENB-PR-N shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.29%.
- ENB-PR-N 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
- Based on estimates for the next years, ENB-PR-N will show a small growth in Earnings Per Share. The EPS will grow by 7.06% on average per year.
- ENB-PR-N is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.24% yearly.
EPS Next Y4.84%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
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
- ENB-PR-N is valuated reasonably with a Price/Earnings ratio of 8.43.
- Based on the Price/Earnings ratio, ENB-PR-N is valued cheaper than 81.78% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. ENB-PR-N is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 7.79, the valuation of ENB-PR-N can be described as very cheap.
- Based on the Price/Forward Earnings ratio, ENB-PR-N is valued cheaper than 81.78% of the companies in the same industry.
- ENB-PR-N's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.43 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
- ENB-PR-N's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ENB-PR-N is cheaper than 62.15% of the companies in the same industry.
- 74.77% of the companies in the same industry are more expensive than ENB-PR-N, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | 9.38 |
4.3 Compensation for Growth
- ENB-PR-N's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ENB-PR-N may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)7.61
EPS Next 2Y5.66%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
- ENB-PR-N has a Yearly Dividend Yield of 5.26%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.82, ENB-PR-N pays a better dividend. On top of this ENB-PR-N pays more dividend than 84.11% of the companies listed in the same industry.
- ENB-PR-N's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
5.2 History
- The dividend of ENB-PR-N has a limited annual growth rate of 4.10%.
- ENB-PR-N has been paying a dividend for at least 10 years, so it has a reliable track record.
- ENB-PR-N 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 Years1
Div Non Decr Years12
5.3 Sustainability
- ENB-PR-N pays out 152.61% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of ENB-PR-N is growing, but earnings are growing more, so the dividend growth is sustainable.
DP152.61%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
ENBRIDGE INC - ENBCN 6.696 PERP / ENB-PR-N.CA FAQ
What is the ChartMill fundamental rating of ENBRIDGE INC - ENBCN 6.696 PERP (ENB-PR-N.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ENB-PR-N.CA.
Can you provide the valuation status for ENBRIDGE INC - ENBCN 6.696 PERP?
ChartMill assigns a valuation rating of 7 / 10 to ENBRIDGE INC - ENBCN 6.696 PERP (ENB-PR-N.CA). This can be considered as Undervalued.
How profitable is ENBRIDGE INC - ENBCN 6.696 PERP (ENB-PR-N.CA) stock?
ENBRIDGE INC - ENBCN 6.696 PERP (ENB-PR-N.CA) has a profitability rating of 7 / 10.
What is the earnings growth outlook for ENBRIDGE INC - ENBCN 6.696 PERP?
The Earnings per Share (EPS) of ENBRIDGE INC - ENBCN 6.696 PERP (ENB-PR-N.CA) is expected to grow by 4.84% in the next year.
Can you provide the dividend sustainability for ENB-PR-N stock?
The dividend rating of ENBRIDGE INC - ENBCN 6.696 PERP (ENB-PR-N.CA) is 8 / 10 and the dividend payout ratio is 152.61%.