ENBRIDGE INC (ENB)

CA29250N1050 - Common Stock

42.98  +0.55 (+1.3%)

After market: 43.0899 +0.11 (+0.26%)

Fundamental Rating

3

Taking everything into account, ENB scores 3 out of 10 in our fundamental rating. ENB was compared to 205 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. ENB has a expensive valuation and it also scores bad on growth. ENB also has an excellent dividend rating.



5

1. Profitability

1.1 Basic Checks

In the past year ENB was profitable.
ENB had a positive operating cash flow in the past year.
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

ENB has a Return On Assets of 3.05%. This is in the lower half of the industry: ENB underperforms 65.17% of its industry peers.
ENB has a Return On Equity (9.55%) which is comparable to the rest of the industry.
ENB has a Return On Invested Capital of 3.61%. This is in the lower half of the industry: ENB underperforms 70.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 29.03%.
Industry RankSector Rank
ROA 3.05%
ROE 9.55%
ROIC 3.61%
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

The Profit Margin of ENB (12.95%) is comparable to the rest of the industry.
ENB's Profit Margin has improved in the last couple of years.
ENB has a Operating Margin of 19.72%. This is comparable to the rest of the industry: ENB outperforms 46.77% of its industry peers.
ENB's Operating Margin has improved in the last couple of years.
ENB's Gross Margin of 48.94% is in line compared to the rest of the industry. ENB outperforms 53.23% of its industry peers.
In the last couple of years the Gross Margin of ENB has grown nicely.
Industry RankSector Rank
OM 19.72%
PM (TTM) 12.95%
GM 48.94%
OM growth 3Y0.93%
OM growth 5Y6.39%
PM growth 3Y20.57%
PM growth 5Y19.79%
GM growth 3Y2.95%
GM growth 5Y6.79%

1

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
ENB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ENB has about the same debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.81, we must say that ENB is in the distress zone and has some risk of bankruptcy.
ENB's Altman-Z score of 0.81 is on the low side compared to the rest of the industry. ENB is outperformed by 64.18% of its industry peers.
The Debt to FCF ratio of ENB is 13.61, which is on the high side as it means it would take ENB, 13.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ENB (13.61) is comparable to the rest of the industry.
ENB has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
ENB has a worse Debt to Equity ratio (1.34) than 78.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 13.61
Altman-Z 0.81
ROIC/WACC0.55
WACC6.62%

2.3 Liquidity

A Current Ratio of 0.62 indicates that ENB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.62, ENB is doing worse than 82.59% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that ENB may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, ENB is not doing good in the industry: 81.59% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.54

3

3. Growth

3.1 Past

ENB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.24%.
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.
The Revenue has been growing slightly by 6.07% in the past year.
The Revenue has been decreasing by -1.21% on average over the past years.
EPS 1Y (TTM)-3.24%
EPS 3Y4.71%
EPS 5Y0.88%
EPS Q2Q%-11.29%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Sales Q2Q%51.18%

3.2 Future

ENB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.53% yearly.
The Revenue is expected to grow by 1.64% on average over the next years.
EPS Next Y0.67%
EPS Next 2Y3.58%
EPS Next 3Y4.8%
EPS Next 5Y6.53%
Revenue Next Year2.34%
Revenue Next 2Y-14.65%
Revenue Next 3Y-5.9%
Revenue Next 5Y1.64%

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.

1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 22.98 indicates a rather expensive valuation of ENB.
ENB's Price/Earnings ratio is a bit more expensive when compared to the industry. ENB is more expensive than 67.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.09, ENB is valued at the same level.
ENB is valuated rather expensively with a Price/Forward Earnings ratio of 20.66.
ENB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ENB is more expensive than 63.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.45. ENB is around the same levels.
Industry RankSector Rank
PE 22.98
Fwd PE 20.66

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than 74.63% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ENB.
Industry RankSector Rank
P/FCF 19.24
EV/EBITDA 15.52

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.
PEG (NY)34.09
PEG (5Y)26.03
EPS Next 2Y3.58%
EPS Next 3Y4.8%

7

5. Dividend

5.1 Amount

ENB has a Yearly Dividend Yield of 6.27%, which is a nice return.
Compared to an average industry Dividend Yield of 6.96, ENB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, ENB pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.27%

5.2 History

On average, the dividend of ENB grows each year by 10.75%, which is quite nice.
ENB has been paying a dividend for at least 10 years, so it has a reliable track record.
ENB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.75%
Div Incr Years24
Div Non Decr Years24

5.3 Sustainability

ENB pays out 129.64% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ENB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP129.64%
EPS Next 2Y3.58%
EPS Next 3Y4.8%

ENBRIDGE INC

NYSE:ENB (1/2/2025, 8:25:25 PM)

After market: 43.0899 +0.11 (+0.26%)

42.98

+0.55 (+1.3%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)02-07 2025-02-07/amc
Inst Owners54.84%
Inst Owner Change0.55%
Ins Owners0.05%
Ins Owner Change0%
Market Cap93.62B
Analysts71.54
Price Target43.8 (1.91%)
Short Float %0.87%
Short Ratio4.65
Dividend
Industry RankSector Rank
Dividend Yield 6.27%
Dividend Growth(5Y)10.75%
DP129.64%
Div Incr Years24
Div Non Decr Years24
Ex-Date02-14 2025-02-14 (0.9425)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.86%
Min EPS beat(2)-9.75%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-1.75%
Min EPS beat(4)-9.75%
Max EPS beat(4)11.79%
EPS beat(8)2
Avg EPS beat(8)-2.66%
EPS beat(12)3
Avg EPS beat(12)-3.06%
EPS beat(16)6
Avg EPS beat(16)-0.74%
Revenue beat(2)2
Avg Revenue beat(2)107.08%
Min Revenue beat(2)96.43%
Max Revenue beat(2)117.73%
Revenue beat(4)3
Avg Revenue beat(4)51.72%
Min Revenue beat(4)-15.94%
Max Revenue beat(4)117.73%
Revenue beat(8)3
Avg Revenue beat(8)18.94%
Revenue beat(12)6
Avg Revenue beat(12)13.79%
Revenue beat(16)8
Avg Revenue beat(16)11.98%
PT rev (1m)0.92%
PT rev (3m)5.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-40.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)19.88%
Valuation
Industry RankSector Rank
PE 22.98
Fwd PE 20.66
P/S 2.77
P/FCF 19.24
P/OCF 10.57
P/B 2.05
P/tB 5.08
EV/EBITDA 15.52
EPS(TTM)1.87
EY4.35%
EPS(NY)2.08
Fwd EY4.84%
FCF(TTM)2.23
FCFY5.2%
OCF(TTM)4.07
OCFY9.46%
SpS15.49
BVpS20.99
TBVpS8.46
PEG (NY)34.09
PEG (5Y)26.03
Profitability
Industry RankSector Rank
ROA 3.05%
ROE 9.55%
ROCE 5.13%
ROIC 3.61%
ROICexc 3.65%
ROICexgc 4.63%
OM 19.72%
PM (TTM) 12.95%
GM 48.94%
FCFM 14.42%
ROA(3y)2.71%
ROA(5y)2.65%
ROE(3y)7.8%
ROE(5y)7.26%
ROIC(3y)3.72%
ROIC(5y)3.76%
ROICexc(3y)3.78%
ROICexc(5y)3.8%
ROICexgc(3y)4.91%
ROICexgc(5y)4.96%
ROCE(3y)5.3%
ROCE(5y)5.35%
ROICexcg growth 3Y1.83%
ROICexcg growth 5Y4.01%
ROICexc growth 3Y2.35%
ROICexc growth 5Y4.46%
OM growth 3Y0.93%
OM growth 5Y6.39%
PM growth 3Y20.57%
PM growth 5Y19.79%
GM growth 3Y2.95%
GM growth 5Y6.79%
F-Score5
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 13.61
Debt/EBITDA 6.08
Cap/Depr 116.17%
Cap/Sales 11.84%
Interest Coverage 250
Cash Conversion 87.77%
Profit Quality 111.37%
Current Ratio 0.62
Quick Ratio 0.54
Altman-Z 0.81
F-Score5
WACC6.62%
ROIC/WACC0.55
Cap/Depr(3y)142.49%
Cap/Depr(5y)149.35%
Cap/Sales(3y)12.47%
Cap/Sales(5y)12.63%
Profit Quality(3y)142.42%
Profit Quality(5y)127.27%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.24%
EPS 3Y4.71%
EPS 5Y0.88%
EPS Q2Q%-11.29%
EPS Next Y0.67%
EPS Next 2Y3.58%
EPS Next 3Y4.8%
EPS Next 5Y6.53%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Sales Q2Q%51.18%
Revenue Next Year2.34%
Revenue Next 2Y-14.65%
Revenue Next 3Y-5.9%
Revenue Next 5Y1.64%
EBIT growth 1Y6.29%
EBIT growth 3Y4.71%
EBIT growth 5Y5.11%
EBIT Next Year71%
EBIT Next 3Y23.69%
EBIT Next 5Y16.76%
FCF growth 1Y68.66%
FCF growth 3Y30.86%
FCF growth 5Y24.19%
OCF growth 1Y34.11%
OCF growth 3Y13.23%
OCF growth 5Y6.22%