ENBRIDGE INC (ENB.CA)
CA29250N1050 - Common Stock
Taking everything into account, ENB scores 4 out of 10 in our fundamental rating. ENB was compared to 220 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ENB while its profitability can be described as average. ENB does not seem to be growing, but still is valued expensively. Finally 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.
Each year in the past 5 years ENB has been profitable.
Each year in the past 5 years ENB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ENB (2.75%) is comparable to the rest of the industry.
ENB has a Return On Equity (8.22%) which is in line with its industry peers.
ENB has a Return On Invested Capital (3.41%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ENB is below the industry average of 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 8.22% | ||
| ROIC | 3.41% |
ROA(3y)2.71%
ROA(5y)2.65%
ROE(3y)7.8%
ROE(5y)7.26%
ROIC(3y)3.72%
ROIC(5y)3.76%
1.3 Margins
Looking at the Profit Margin, with a value of 12.70%, ENB is in the better half of the industry, outperforming 60.75% of the companies in the same industry.
ENB's Profit Margin has improved in the last couple of years.
ENB's Operating Margin of 20.50% is in line compared to the rest of the industry. ENB outperforms 57.94% of its industry peers.
In the last couple of years the Operating Margin of ENB has grown nicely.
ENB has a Gross Margin of 52.28%. This is comparable to the rest of the industry: ENB outperforms 59.81% of its industry peers.
In the last couple of years the Gross Margin of ENB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.5% | ||
| PM (TTM) | 12.7% | ||
| GM | 52.28% |
OM growth 3Y0.93%
OM growth 5Y6.39%
PM growth 3Y20.57%
PM growth 5Y19.79%
GM growth 3Y2.95%
GM growth 5Y6.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENB is destroying value.
Compared to 1 year ago, ENB has less shares outstanding
The number of shares outstanding for ENB has been increased compared to 5 years ago.
Compared to 1 year ago, ENB has about the same debt to assets ratio.
2.2 Solvency
ENB has an Altman-Z score of 0.77. 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 0.77, ENB perfoms like the industry average, outperforming 50.93% of the companies in the same industry.
The Debt to FCF ratio of ENB is 12.19, which is on the high side as it means it would take ENB, 12.19 years of fcf income to pay off all of its debts.
ENB has a Debt to FCF ratio of 12.19. This is comparable to the rest of the industry: ENB outperforms 59.81% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that ENB has dependencies on debt financing.
ENB has a Debt to Equity ratio of 1.27. This is amonst the worse of the industry: ENB underperforms 82.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 12.19 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.57
WACC5.99%
2.3 Liquidity
ENB has a Current Ratio of 0.77. This is a bad value and indicates that ENB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ENB (0.77) is comparable to the rest of the industry.
A Quick Ratio of 0.68 indicates that ENB may have some problems paying its short term obligations.
The Quick ratio of ENB (0.68) is worse than 66.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
ENB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.47%.
Measured over the past 5 years, ENB shows a small growth in Earnings Per Share. The EPS has been growing by 0.88% on average per year.
ENB shows a decrease in Revenue. In the last year, the revenue decreased by -8.40%.
The Revenue has been decreasing by -1.21% on average over the past years.
EPS 1Y (TTM)-2.47%
EPS 3Y4.71%
EPS 5Y0.88%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)-8.4%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Sales Q2Q%10.17%
3.2 Future
The Earnings Per Share is expected to grow by 8.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.93% on average over the next years.
EPS Next Y2.85%
EPS Next 2Y4.93%
EPS Next 3Y6.28%
EPS Next 5Y8.55%
Revenue Next Year-17.05%
Revenue Next 2Y-15.73%
Revenue Next 3Y-7.53%
Revenue Next 5Y5.93%
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.
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
ENB is valuated rather expensively with a Price/Earnings ratio of 19.99.
ENB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.45, ENB is valued a bit cheaper.
ENB is valuated rather expensively with a Price/Forward Earnings ratio of 17.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENB is on the same level as its industry peers.
ENB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENB.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENB indicates a somewhat cheap valuation: ENB is cheaper than 63.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.9 | ||
| EV/EBITDA | 15.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ENB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.01
PEG (5Y)22.64
EPS Next 2Y4.93%
EPS Next 3Y6.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.66%, ENB is a good candidate for dividend investing.
ENB's Dividend Yield is rather good when compared to the industry average which is at 6.47. ENB pays more dividend than 89.72% of the companies in the same industry.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.66% |
5.2 History
The dividend of ENB is nicely growing with an annual growth rate of 10.75%!
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)10.75%
Div Incr Years23
Div Non Decr Years23
5.3 Sustainability
ENB pays out 143.71% of its income as dividend. This is not a sustainable payout ratio.
ENB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP143.71%
EPS Next 2Y4.93%
EPS Next 3Y6.28%
ENBRIDGE INC
TSX:ENB (9/18/2024, 7:00:00 PM)
55.18
-0.78 (-1.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap120.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)7.01
PEG (5Y)22.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 8.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.5% | ||
| PM (TTM) | 12.7% | ||
| GM | 52.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.47%
EPS 3Y4.71%
EPS 5Y
EPS Q2Q%
EPS Next Y2.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.4%
Revenue growth 3Y3.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y