ENBRIDGE INC (ENB.CA) Stock Fundamental Analysis
TSX:ENB - Toronto Stock Exchange - CA29250N1050 - Common Stock - Currency: CAD
ENB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 219 industry peers in the Oil, Gas & Consumable Fuels industry. While ENB is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, ENB is valued expensive at the moment. ENB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ENB was profitable.
ENB had a positive operating cash flow in the past year.
In the past 5 years ENB has always been profitable.
Each year in the past 5 years ENB had a positive operating cash flow.
1.2 Ratios
ENB has a Return On Assets of 2.31%. This is comparable to the rest of the industry: ENB outperforms 54.75% of its industry peers.
ENB's Return On Equity of 7.67% is fine compared to the rest of the industry. ENB outperforms 61.99% of its industry peers.
ENB's Return On Invested Capital of 3.85% is in line compared to the rest of the industry. ENB outperforms 54.30% of its industry peers.
ENB 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 has a better Profit Margin (9.45%) than 62.90% of its industry peers.
In the last couple of years the Profit Margin of ENB has declined.
ENB has a Operating Margin of 18.31%. This is in the better half of the industry: ENB outperforms 61.99% of its industry peers.
In the last couple of years the Operating Margin of ENB has grown nicely.
Looking at the Gross Margin, with a value of 45.63%, ENB is in the better half of the industry, outperforming 60.63% of the companies in the same industry.
ENB'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 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 has more shares outstanding
Compared to 5 years ago, ENB has more shares outstanding
ENB has a worse debt/assets ratio than last year.
2.2 Solvency
ENB has an Altman-Z score of 0.72. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.72, ENB perfoms like the industry average, outperforming 55.20% of the companies in the same industry.
The Debt to FCF ratio of ENB is 17.93, which is on the high side as it means it would take ENB, 17.93 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ENB (17.93) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.43 is on the high side and indicates that ENB has dependencies on debt financing.
ENB has a Debt to Equity ratio of 1.43. This is in the lower half of the industry: ENB underperforms 73.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.56
WACC6.85%
2.3 Liquidity
ENB has a Current Ratio of 0.55. This is a bad value and indicates that ENB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.55, ENB is doing worse than 62.44% of the companies in the same industry.
ENB has a Quick Ratio of 0.55. This is a bad value and indicates that ENB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.49, ENB is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
| 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.
Measured over the past 5 years, ENB shows a small growth in Earnings Per Share. The EPS has been growing by 1.12% on average per year.
The Revenue has grown by 22.51% in the past year. This is a very strong growth!
Measured over the past years, ENB shows a small growth in Revenue. The Revenue has been growing by 1.32% on average per year.
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 will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.10% on average per year.
The Revenue is expected to grow by 1.66% on average over the next years.
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 21.56 indicates a rather expensive valuation of ENB.
Compared to the rest of the industry, the Price/Earnings ratio of ENB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ENB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.56, the valuation of ENB can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENB is on the same level as its industry peers.
ENB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
ENB's Enterprise Value to EBITDA is on the same level as the industry average.
ENB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.2 | ||
| EV/EBITDA | 15.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ENB does not grow enough to justify the current Price/Earnings ratio.
ENB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)19.26
EPS Next 2Y7.87%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.33%, ENB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.94, ENB pays a better dividend. On top of this ENB pays more dividend than 91.40% of the companies listed in the same industry.
ENB'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 has a limited annual growth rate of 4.10%.
ENB has paid a dividend for at least 10 years, which is a reliable track record.
ENB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.1%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
163.51% of the earnings are spent on dividend by ENB. This is not a sustainable payout ratio.
The dividend of ENB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP163.51%
EPS Next 2Y7.87%
EPS Next 3Y7.54%
TSX:ENB (3/7/2025, 7:00:00 PM)
60.38
+0.86 (+1.44%)
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 Cap131.57B
Analysts71.11
Price Target65.18 (7.95%)
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 Years24
Div Non Decr Years24
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)2.63%
PT rev (3m)6.47%
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 | 21.56 | ||
| Fwd PE | 19.56 | ||
| P/S | 2.46 | ||
| P/FCF | 23.2 | ||
| P/OCF | 10.44 | ||
| P/B | 2 | ||
| P/tB | 5.32 | ||
| EV/EBITDA | 15.44 |
EPS(TTM)2.8
EY4.64%
EPS(NY)3.09
Fwd EY5.11%
FCF(TTM)2.6
FCFY4.31%
OCF(TTM)5.78
OCFY9.58%
SpS24.54
BVpS30.24
TBVpS11.34
PEG (NY)2.12
PEG (5Y)19.26
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 | 0.72 |
F-Score4
WACC6.85%
ROIC/WACC0.56
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%