ENBRIDGE INC (ENB) Stock Fundamental Analysis
NYSE:ENB - New York Stock Exchange, Inc. - CA29250N1050 - Common Stock - Currency: USD
Taking everything into account, ENB scores 3 out of 10 in our fundamental rating. ENB was compared to 212 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 is quite expensive at the moment. It does show a decent growth rate. Finally ENB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ENB had positive earnings in the past year.
In the past year ENB had a positive cash flow from operations.
ENB had positive earnings in each of the past 5 years.
Each year in the past 5 years ENB had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.31%, ENB perfoms like the industry average, outperforming 41.51% of the companies in the same industry.
The Return On Equity of ENB (7.67%) is comparable to the rest of the industry.
The Return On Invested Capital of ENB (3.85%) is worse than 65.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 27.42%.
| 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's Profit Margin of 9.45% is in line compared to the rest of the industry. ENB outperforms 53.77% of its industry peers.
ENB's Profit Margin has declined in the last couple of years.
ENB has a Operating Margin (18.31%) which is in line with its industry peers.
ENB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 45.63%, ENB perfoms like the industry average, outperforming 49.06% 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.
The number of shares outstanding for ENB has been increased compared to 1 year ago.
Compared to 5 years ago, ENB has more shares outstanding
Compared to 1 year ago, ENB has a worse debt to assets ratio.
2.2 Solvency
ENB has an Altman-Z score of 0.74. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
ENB has a Altman-Z score of 0.74. This is comparable to the rest of the industry: ENB outperforms 40.09% of its industry peers.
ENB has a debt to FCF ratio of 17.93. This is a negative value and a sign of low solvency as ENB would need 17.93 years to pay back of all of its debts.
ENB has a Debt to FCF ratio of 17.93. This is comparable to the rest of the industry: ENB outperforms 43.40% of its industry peers.
ENB has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
ENB's Debt to Equity ratio of 1.43 is on the low side compared to the rest of the industry. ENB is outperformed by 75.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.44
WACC8.67%
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.
ENB has a worse Current ratio (0.55) than 83.02% of its industry peers.
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.
ENB's Quick ratio of 0.49 is on the low side compared to the rest of the industry. ENB is outperformed by 83.02% of its industry peers.
| 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 0.36% 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 1.11% on average per year.
ENB shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.51%.
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)0.36%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%17.19%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%43.54%
3.2 Future
The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.28% on average over the next years.
EPS Next Y9.83%
EPS Next 2Y8.25%
EPS Next 3Y7.99%
EPS Next 5Y8.26%
Revenue Next Year15.72%
Revenue Next 2Y9.16%
Revenue Next 3Y6.92%
Revenue Next 5Y0.28%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.46 indicates a rather expensive valuation of ENB.
60.38% of the companies in the same industry are cheaper than ENB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ENB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 20.48, the valuation of ENB can be described as rather expensive.
ENB's Price/Forward Earnings ratio is in line with the industry average.
ENB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.46 | ||
| Fwd PE | 20.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than the industry average as 67.92% of the companies are valued more cheaply.
ENB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.21 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.28
PEG (5Y)20.28
EPS Next 2Y8.25%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.00%, ENB is a good candidate for dividend investing.
ENB's Dividend Yield is a higher than the industry average which is at 7.52.
Compared to an average S&P500 Dividend Yield of 2.52, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
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 163.51% of its income as dividend. 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 2Y8.25%
EPS Next 3Y7.99%
45.37
+0.8 (+1.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap98.87B
Analysts71.11
Price Target45.67 (0.66%)
Short Float %1.59%
Short Ratio8.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
Yearly Dividend2.77
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)-1.32%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.67%
EPS beat(4)1
Avg EPS beat(4)-0.15%
Min EPS beat(4)-9.75%
Max EPS beat(4)11.79%
EPS beat(8)2
Avg EPS beat(8)-0.91%
EPS beat(12)3
Avg EPS beat(12)-2.18%
EPS beat(16)6
Avg EPS beat(16)-0.23%
Revenue beat(2)2
Avg Revenue beat(2)113.16%
Min Revenue beat(2)108.58%
Max Revenue beat(2)117.73%
Revenue beat(4)4
Avg Revenue beat(4)82.85%
Min Revenue beat(4)8.67%
Max Revenue beat(4)117.73%
Revenue beat(8)4
Avg Revenue beat(8)33.02%
Revenue beat(12)6
Avg Revenue beat(12)22.01%
Revenue beat(16)9
Avg Revenue beat(16)19.55%
PT rev (1m)1.34%
PT rev (3m)4.25%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)6.13%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)21.34%
Revenue NQ rev (3m)81.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)63.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.46 | ||
| Fwd PE | 20.48 | ||
| P/S | 2.57 | ||
| P/FCF | 24.21 | ||
| P/OCF | 10.89 | ||
| P/B | 2.08 | ||
| P/tB | 5.55 | ||
| EV/EBITDA | 15.82 |
EPS(TTM)2.02
EY4.45%
EPS(NY)2.21
Fwd EY4.88%
FCF(TTM)1.87
FCFY4.13%
OCF(TTM)4.16
OCFY9.18%
SpS17.67
BVpS21.78
TBVpS8.17
PEG (NY)2.28
PEG (5Y)20.28
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 | 0.74 |
F-Score4
WACC8.67%
ROIC/WACC0.44
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)0.36%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%17.19%
EPS Next Y9.83%
EPS Next 2Y8.25%
EPS Next 3Y7.99%
EPS Next 5Y8.26%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%43.54%
Revenue Next Year15.72%
Revenue Next 2Y9.16%
Revenue Next 3Y6.92%
Revenue Next 5Y0.28%
EBIT growth 1Y10%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year75.24%
EBIT Next 3Y24.16%
EBIT Next 5Y16.03%
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%