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 210 industry peers in the Oil, Gas & Consumable Fuels industry. ENB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year ENB had a positive cash flow from operations.
Each year in the past 5 years ENB has been profitable.
ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENB has a Return On Assets (2.68%) which is in line with its industry peers.
ENB's Return On Equity of 8.64% is fine compared to the rest of the industry. ENB outperforms 62.38% of its industry peers.
The Return On Invested Capital of ENB (4.07%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ENB is below the industry average of 7.31%.
The 3 year average ROIC (3.99%) for ENB is below the current ROIC(4.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 8.64% | ||
| ROIC | 4.07% |
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
With a decent Profit Margin value of 9.67%, ENB is doing good in the industry, outperforming 62.86% of the companies in the same industry.
ENB's Profit Margin has declined in the last couple of years.
The Operating Margin of ENB (17.53%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ENB has grown nicely.
With a Gross Margin value of 42.37%, ENB perfoms like the industry average, outperforming 53.81% of the companies in the same industry.
ENB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.53% | ||
| PM (TTM) | 9.67% | ||
| GM | 42.37% |
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.
ENB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ENB has been increased compared to 5 years ago.
The debt/assets ratio for ENB is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that ENB is in the distress zone and has some risk of bankruptcy.
ENB has a Altman-Z score (0.82) which is comparable to the rest of the industry.
The Debt to FCF ratio of ENB is 20.56, which is on the high side as it means it would take ENB, 20.56 years of fcf income to pay off all of its debts.
ENB's Debt to FCF ratio of 20.56 is in line compared to the rest of the industry. ENB outperforms 56.19% of its industry peers.
A Debt/Equity ratio of 1.44 is on the high side and indicates that ENB has dependencies on debt financing.
The Debt to Equity ratio of ENB (1.44) is worse than 75.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.56
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.73 indicates that ENB may have some problems paying its short term obligations.
ENB has a Current ratio (0.73) which is comparable to the rest of the industry.
A Quick Ratio of 0.66 indicates that ENB may have some problems paying its short term obligations.
The Quick ratio of ENB (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.75%.
ENB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
The Revenue has grown by 43.00% 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)1.75%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%11.96%
Revenue 1Y (TTM)43%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%67.62%
3.2 Future
The Earnings Per Share is expected to grow by 7.83% on average over the next years.
ENB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y7.83%
Revenue Next Year14.97%
Revenue Next 2Y9.15%
Revenue Next 3Y7.36%
Revenue Next 5Y6.39%
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
Based on the Price/Earnings ratio of 20.93, the valuation of ENB can be described as rather expensive.
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 27.45, ENB is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.74, which indicates a rather expensive current valuation of ENB.
ENB's Price/Forward Earnings ratio is in line with the industry average.
ENB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENB is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.47 | ||
| EV/EBITDA | 14.5 |
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 may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)18.9
EPS Next 2Y7.73%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.73%, ENB is a good candidate for dividend investing.
ENB's Dividend Yield is rather good when compared to the industry average which is at 6.19. ENB pays more dividend than 91.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.73% |
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
ENB pays out 142.15% of its income as dividend. This is not a sustainable payout ratio.
ENB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP142.15%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
TSX:ENB (7/3/2025, 7:00:00 PM)
60.91
+0.06 (+0.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.95%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap132.79B
Analysts72.14
Price Target66.76 (9.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.73% |
Yearly Dividend3.84
Dividend Growth(5Y)4.1%
DP142.15%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.86%
Min EPS beat(2)-0.67%
Max EPS beat(2)6.39%
EPS beat(4)1
Avg EPS beat(4)-1.5%
Min EPS beat(4)-9.75%
Max EPS beat(4)6.39%
EPS beat(8)3
Avg EPS beat(8)-0.03%
EPS beat(12)4
Avg EPS beat(12)-1.51%
EPS beat(16)6
Avg EPS beat(16)-0.67%
Revenue beat(2)2
Avg Revenue beat(2)68.68%
Min Revenue beat(2)28.78%
Max Revenue beat(2)108.58%
Revenue beat(4)4
Avg Revenue beat(4)87.88%
Min Revenue beat(4)28.78%
Max Revenue beat(4)117.73%
Revenue beat(8)5
Avg Revenue beat(8)39.78%
Revenue beat(12)6
Avg Revenue beat(12)23.62%
Revenue beat(16)10
Avg Revenue beat(16)21.8%
PT rev (1m)0.85%
PT rev (3m)1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 18.74 | ||
| P/S | 2.18 | ||
| P/FCF | 26.47 | ||
| P/OCF | 10.62 | ||
| P/B | 1.95 | ||
| P/tB | 4.89 | ||
| EV/EBITDA | 14.5 |
EPS(TTM)2.91
EY4.78%
EPS(NY)3.25
Fwd EY5.34%
FCF(TTM)2.3
FCFY3.78%
OCF(TTM)5.73
OCFY9.42%
SpS27.95
BVpS31.31
TBVpS12.45
PEG (NY)2.52
PEG (5Y)18.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 8.64% | ||
| ROCE | 5.31% | ||
| ROIC | 4.07% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 5.17% | ||
| OM | 17.53% | ||
| PM (TTM) | 9.67% | ||
| GM | 42.37% | ||
| FCFM | 8.23% |
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-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Debt/EBITDA | 6.1 | ||
| Cap/Depr | 139.09% | ||
| Cap/Sales | 12.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.81% | ||
| Profit Quality | 85.09% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.82 |
F-Score5
WACC7.22%
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)1.75%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%11.96%
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y7.83%
Revenue 1Y (TTM)43%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%67.62%
Revenue Next Year14.97%
Revenue Next 2Y9.15%
Revenue Next 3Y7.36%
Revenue Next 5Y6.39%
EBIT growth 1Y17.72%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year75.25%
EBIT Next 3Y24.1%
EBIT Next 5Y15.89%
FCF growth 1Y-30.74%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y2.84%
OCF growth 3Y10.83%
OCF growth 5Y6.04%