ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENB-PR-V - CA29250N7172
24.68 USD
+0.09 (+0.37%)
ENB-PR-V gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. ENB-PR-V has a medium profitability rating, but doesn't score so well on its financial health evaluation. ENB-PR-V may be a bit undervalued, certainly considering the very reasonable score on growth ENB-PR-V also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ENB-PR-V had positive earnings in the past year.
- In the past year ENB-PR-V had a positive cash flow from operations.
- Each year in the past 5 years ENB-PR-V has been profitable.
- ENB-PR-V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ENB-PR-V has a Return On Assets (2.59%) which is comparable to the rest of the industry.
- ENB-PR-V has a better Return On Equity (8.61%) than 67.96% of its industry peers.
- The Return On Invested Capital of ENB-PR-V (4.12%) is better than 65.05% of its industry peers.
- ENB-PR-V 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 last Return On Invested Capital (4.12%) for ENB-PR-V 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-V's Profit Margin of 8.74% is fine compared to the rest of the industry. ENB-PR-V outperforms 65.05% of its industry peers.
- ENB-PR-V's Profit Margin has declined in the last couple of years.
- ENB-PR-V has a better Operating Margin (16.91%) than 66.50% of its industry peers.
- ENB-PR-V's Operating Margin has improved in the last couple of years.
- ENB-PR-V has a Gross Margin (41.11%) which is comparable to the rest of the industry.
- ENB-PR-V'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
- ENB-PR-V has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ENB-PR-V has been increased compared to 1 year ago.
- Compared to 5 years ago, ENB-PR-V has more shares outstanding
- The debt/assets ratio for ENB-PR-V is higher compared to a year ago.
2.2 Solvency
- ENB-PR-V has an Altman-Z score of 0.53. This is a bad value and indicates that ENB-PR-V is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.53, ENB-PR-V perfoms like the industry average, outperforming 49.03% of the companies in the same industry.
- ENB-PR-V has a debt to FCF ratio of 25.58. This is a negative value and a sign of low solvency as ENB-PR-V would need 25.58 years to pay back of all of its debts.
- ENB-PR-V has a Debt to FCF ratio of 25.58. This is in the better half of the industry: ENB-PR-V outperforms 62.62% of its industry peers.
- ENB-PR-V has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
- ENB-PR-V has a Debt to Equity ratio of 1.56. This is in the lower half of the industry: ENB-PR-V underperforms 68.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.58
WACC7.14%
2.3 Liquidity
- A Current Ratio of 0.80 indicates that ENB-PR-V may have some problems paying its short term obligations.
- ENB-PR-V has a Current ratio (0.80) which is comparable to the rest of the industry.
- A Quick Ratio of 0.68 indicates that ENB-PR-V may have some problems paying its short term obligations.
- ENB-PR-V 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
- ENB-PR-V shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.43%.
- Measured over the past 5 years, ENB-PR-V shows a small growth in Earnings Per Share. The EPS has been growing by 1.11% on average per year.
- The Revenue has grown by 32.29% in the past year. This is a very strong growth!
- Measured over the past years, ENB-PR-V 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
- The Earnings Per Share is expected to grow by 7.06% on average over the next years.
- The Revenue is expected to grow by 7.24% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 8.54, the valuation of ENB-PR-V can be described as very reasonable.
- ENB-PR-V's Price/Earnings ratio is rather cheap when compared to the industry. ENB-PR-V is cheaper than 82.04% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ENB-PR-V to the average of the S&P500 Index (28.60), we can say ENB-PR-V is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.94 indicates a rather cheap valuation of ENB-PR-V.
- 81.55% of the companies in the same industry are more expensive than ENB-PR-V, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. ENB-PR-V is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
- 61.16% of the companies in the same industry are more expensive than ENB-PR-V, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ENB-PR-V is valued a bit cheaper than the industry average as 74.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of ENB-PR-V may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)7.71
EPS Next 2Y5.39%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
- ENB-PR-V has a Yearly Dividend Yield of 5.93%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.29, ENB-PR-V pays a better dividend. On top of this ENB-PR-V pays more dividend than 90.29% of the companies listed in the same industry.
- ENB-PR-V's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
5.2 History
- The dividend of ENB-PR-V has a limited annual growth rate of 4.10%.
- ENB-PR-V has been paying a dividend for at least 10 years, so it has a reliable track record.
- ENB-PR-V 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 Years2
Div Non Decr Years11
5.3 Sustainability
- ENB-PR-V pays out 152.61% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of ENB-PR-V 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 6.7037 PERP / ENB-PR-V.CA FAQ
What is the ChartMill fundamental rating of ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ENB-PR-V.CA.
What is the valuation status of ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA). This can be considered as Undervalued.
How profitable is ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) stock?
ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) has a profitability rating of 6 / 10.
What is the expected EPS growth for ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) stock?
The Earnings per Share (EPS) of ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) is expected to grow by 4.67% in the next year.
How sustainable is the dividend of ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) stock?
The dividend rating of ENBRIDGE INC - ENBCN 6.7037 PERP (ENB-PR-V.CA) is 8 / 10 and the dividend payout ratio is 152.61%.