ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENB - CA29250N1050 - Common Stock
48.78 USD
+0.74 (+1.54%)
48.73 USD
-0.05 (-0.1%)
ENB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 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 valied quite expensively at the moment, while 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.
ENB had a positive operating cash flow in the past year.
ENB had positive earnings in each of the past 5 years.
ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ENB (2.59%) is comparable to the rest of the industry.
ENB has a Return On Equity (8.61%) which is in line with its industry peers.
ENB has a worse Return On Invested Capital (4.12%) than 62.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ENB is significantly below the industry average of 21.49%.
The last Return On Invested Capital (4.12%) for ENB is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 8.61% | ||
| ROIC | 4.12% |
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
Looking at the Profit Margin, with a value of 8.74%, ENB is in line with its industry, outperforming 54.55% of the companies in the same industry.
ENB's Profit Margin has declined in the last couple of years.
ENB has a Operating Margin (16.91%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ENB has grown nicely.
ENB has a Gross Margin (41.11%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ENB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.91% | ||
| PM (TTM) | 8.74% | ||
| GM | 41.11% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENB is destroying value.
The number of shares outstanding for ENB has been increased compared to 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 0.91, we must say that ENB is in the distress zone and has some risk of bankruptcy.
ENB has a Altman-Z score (0.91) which is in line with its industry peers.
ENB has a debt to FCF ratio of 25.58. This is a negative value and a sign of low solvency as ENB would need 25.58 years to pay back of all of its debts.
ENB has a Debt to FCF ratio of 25.58. This is comparable to the rest of the industry: ENB outperforms 43.54% of its industry peers.
A Debt/Equity ratio of 1.56 is on the high side and indicates that ENB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.56, ENB is doing worse than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.57
WACC7.18%
2.3 Liquidity
A Current Ratio of 0.80 indicates that ENB may have some problems paying its short term obligations.
With a Current ratio value of 0.80, ENB is not doing good in the industry: 67.46% of the companies in the same industry are doing better.
ENB has a Quick Ratio of 0.80. 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 Quick ratio, with a value of 0.68, ENB is doing worse than 68.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.43% over the past year.
The Earnings Per Share has been growing slightly by 1.11% on average over the past years.
Looking at the last year, ENB shows a very strong growth in Revenue. The Revenue has grown by 32.29%.
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)7.43%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%-16.36%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%-1.63%
3.2 Future
Based on estimates for the next years, ENB will show a small growth in Earnings Per Share. The EPS will grow by 7.51% on average per year.
Based on estimates for the next years, ENB will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y7.76%
EPS Next 2Y7.08%
EPS Next 3Y7.08%
EPS Next 5Y7.51%
Revenue Next Year26.64%
Revenue Next 2Y11.77%
Revenue Next 3Y10.37%
Revenue Next 5Y7.45%
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 23.68 indicates a rather expensive valuation of ENB.
ENB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ENB to the average of the S&P500 Index (26.31), we can say ENB is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.29, ENB is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as ENB.
ENB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 21.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than the industry average as 66.99% of the companies are valued more cheaply.
ENB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.78 | ||
| EV/EBITDA | 15.22 |
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)3.05
PEG (5Y)21.39
EPS Next 2Y7.08%
EPS Next 3Y7.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.59%, ENB is a good candidate for dividend investing.
ENB's Dividend Yield is a higher than the industry average which is at 5.93.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
5.2 History
The dividend of ENB has a limited annual growth rate of 4.10%.
ENB has been paying a dividend for at least 10 years, so it has 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
152.61% 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.
DP152.61%
EPS Next 2Y7.08%
EPS Next 3Y7.08%
48.78
+0.74 (+1.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners56.25%
Inst Owner Change-2.42%
Ins Owners0.05%
Ins Owner Change0%
Market Cap106.40B
Revenue(TTM)64.23B
Net Income(TTM)5.61B
Analysts72.14
Price Target50.02 (2.54%)
Short Float %1.11%
Short Ratio6.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
Yearly Dividend2.74
Dividend Growth(5Y)4.1%
DP152.61%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.44%
Min EPS beat(2)-11.44%
Max EPS beat(2)12.31%
EPS beat(4)2
Avg EPS beat(4)1.65%
Min EPS beat(4)-11.44%
Max EPS beat(4)12.31%
EPS beat(8)3
Avg EPS beat(8)-0.05%
EPS beat(12)4
Avg EPS beat(12)-1.22%
EPS beat(16)5
Avg EPS beat(16)-1.89%
Revenue beat(2)2
Avg Revenue beat(2)13.23%
Min Revenue beat(2)1.89%
Max Revenue beat(2)24.58%
Revenue beat(4)4
Avg Revenue beat(4)40.96%
Min Revenue beat(4)1.89%
Max Revenue beat(4)108.58%
Revenue beat(8)7
Avg Revenue beat(8)46.34%
Revenue beat(12)7
Avg Revenue beat(12)26.28%
Revenue beat(16)10
Avg Revenue beat(16)20.58%
PT rev (1m)1.82%
PT rev (3m)2.05%
EPS NQ rev (1m)-1.64%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)5.69%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 21.29 | ||
| P/S | 2.32 | ||
| P/FCF | 36.78 | ||
| P/OCF | 11.63 | ||
| P/B | 2.29 | ||
| P/tB | 5.91 | ||
| EV/EBITDA | 15.22 |
EPS(TTM)2.06
EY4.22%
EPS(NY)2.29
Fwd EY4.7%
FCF(TTM)1.33
FCFY2.72%
OCF(TTM)4.19
OCFY8.6%
SpS21.01
BVpS21.32
TBVpS8.25
PEG (NY)3.05
PEG (5Y)21.39
Graham Number31.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 8.61% | ||
| ROCE | 5.38% | ||
| ROIC | 4.12% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 5.17% | ||
| OM | 16.91% | ||
| PM (TTM) | 8.74% | ||
| GM | 41.11% | ||
| FCFM | 6.31% |
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%
ROICexgc growth 3Y-2.31%
ROICexgc 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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Debt/EBITDA | 6.2 | ||
| Cap/Depr | 157.09% | ||
| Cap/Sales | 13.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.99% | ||
| Profit Quality | 72.23% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.91 |
F-Score5
WACC7.18%
ROIC/WACC0.57
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)7.43%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%-16.36%
EPS Next Y7.76%
EPS Next 2Y7.08%
EPS Next 3Y7.08%
EPS Next 5Y7.51%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%-1.63%
Revenue Next Year26.64%
Revenue Next 2Y11.77%
Revenue Next 3Y10.37%
Revenue Next 5Y7.45%
EBIT growth 1Y13.39%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year74.86%
EBIT Next 3Y24.11%
EBIT Next 5Y16.05%
FCF growth 1Y-55.29%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y-8.43%
OCF growth 3Y10.83%
OCF growth 5Y6.04%
ENBRIDGE INC / ENB FAQ
What is the fundamental rating for ENB stock?
ChartMill assigns a fundamental rating of 4 / 10 to ENB.
Can you provide the valuation status for ENBRIDGE INC?
ChartMill assigns a valuation rating of 2 / 10 to ENBRIDGE INC (ENB). This can be considered as Overvalued.
What is the profitability of ENB stock?
ENBRIDGE INC (ENB) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for ENB stock?
The Price/Earnings (PE) ratio for ENBRIDGE INC (ENB) is 23.68 and the Price/Book (PB) ratio is 2.29.
What is the earnings growth outlook for ENBRIDGE INC?
The Earnings per Share (EPS) of ENBRIDGE INC (ENB) is expected to grow by 7.76% in the next year.