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 209 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. 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
In the past year ENB was profitable.
ENB had a positive operating cash flow in the past year.
In the past 5 years ENB has always been profitable.
ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ENB (2.31%) is worse than 61.90% of its industry peers.
ENB has a Return On Equity of 7.67%. This is comparable to the rest of the industry: ENB outperforms 43.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.85%, ENB is doing worse than 67.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 27.48%.
| 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 has a Profit Margin (9.45%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ENB has declined.
ENB has a Operating Margin of 18.31%. This is comparable to the rest of the industry: ENB outperforms 49.05% of its industry peers.
In the last couple of years the Operating Margin of ENB has grown nicely.
ENB's Gross Margin of 45.63% is in line compared to the rest of the industry. ENB outperforms 50.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENB is destroying value.
The number of shares outstanding for ENB has been increased compared to 1 year ago.
ENB has more shares outstanding than it did 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 0.72, we must say that ENB is in the distress zone and has some risk of bankruptcy.
ENB's Altman-Z score of 0.72 is on the low side compared to the rest of the industry. ENB is outperformed by 60.95% 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.
The Debt to FCF ratio of ENB (17.93) is comparable to the rest of the industry.
ENB has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.43, ENB is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.56
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.55 indicates that ENB may have some problems paying its short term obligations.
ENB has a worse Current ratio (0.55) than 83.33% 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.
Looking at the Quick ratio, with a value of 0.49, ENB is doing worse than 83.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.42%.
Measured over the past 5 years, ENB shows a small growth in Earnings Per Share. The EPS has been growing by 1.12% on average per year.
The Revenue has grown by 22.51% 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)0.42%
EPS 3Y0.62%
EPS 5Y1.12%
EPS Q2Q%17.46%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%45.52%
3.2 Future
Based on estimates for the next years, ENB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.10% on average per year.
Based on estimates for the next years, ENB will show a small growth in Revenue. The Revenue will grow by 1.66% on average per year.
EPS Next Y10.18%
EPS Next 2Y7.87%
EPS Next 3Y7.54%
EPS Next 5Y8.1%
Revenue Next Year15.72%
Revenue Next 2Y9.16%
Revenue Next 3Y6.92%
Revenue Next 5Y1.66%
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
Based on the Price/Earnings ratio of 21.54, the valuation of ENB can be described as rather expensive.
ENB's Price/Earnings ratio is a bit more expensive when compared to the industry. ENB is more expensive than 61.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. ENB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.51, the valuation of ENB can be described as rather expensive.
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 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 19.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than 68.10% of the companies in the same industry.
ENB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 15.41 |
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)2.12
PEG (5Y)19.23
EPS Next 2Y7.87%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 6.33%, which is a nice return.
ENB's Dividend Yield is a higher than the industry average which is at 7.12.
Compared to an average S&P500 Dividend Yield of 2.33, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
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.
ENB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP163.51%
EPS Next 2Y7.87%
EPS Next 3Y7.54%
42
+0.4 (+0.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner Change-0.57%
Ins Owners0.05%
Ins Owner Change0%
Market Cap91.52B
Analysts71.11
Price Target45.06 (7.29%)
Short Float %3.54%
Short Ratio18.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
Yearly Dividend2.68
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%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.04%
EPS beat(4)1
Avg EPS beat(4)0.01%
Min EPS beat(4)-9.75%
Max EPS beat(4)11.79%
EPS beat(8)2
Avg EPS beat(8)-0.83%
EPS beat(12)3
Avg EPS beat(12)-2.13%
EPS beat(16)6
Avg EPS beat(16)-0.19%
Revenue beat(2)2
Avg Revenue beat(2)114.59%
Min Revenue beat(2)111.46%
Max Revenue beat(2)117.73%
Revenue beat(4)4
Avg Revenue beat(4)83.57%
Min Revenue beat(4)8.67%
Max Revenue beat(4)117.73%
Revenue beat(8)4
Avg Revenue beat(8)33.38%
Revenue beat(12)6
Avg Revenue beat(12)22.25%
Revenue beat(16)9
Avg Revenue beat(16)19.73%
PT rev (1m)1.98%
PT rev (3m)2.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.96%
EPS NY rev (1m)0.5%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)47.43%
Revenue NY rev (3m)64.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 19.51 | ||
| P/S | 2.45 | ||
| P/FCF | 23.14 | ||
| P/OCF | 10.41 | ||
| P/B | 1.99 | ||
| P/tB | 5.31 | ||
| EV/EBITDA | 15.41 |
EPS(TTM)1.95
EY4.64%
EPS(NY)2.15
Fwd EY5.13%
FCF(TTM)1.81
FCFY4.32%
OCF(TTM)4.03
OCFY9.6%
SpS17.12
BVpS21.09
TBVpS7.91
PEG (NY)2.12
PEG (5Y)19.23
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 | 0.72 |
F-Score4
WACC6.85%
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)0.42%
EPS 3Y0.62%
EPS 5Y1.12%
EPS Q2Q%17.46%
EPS Next Y10.18%
EPS Next 2Y7.87%
EPS Next 3Y7.54%
EPS Next 5Y8.1%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%45.52%
Revenue Next Year15.72%
Revenue Next 2Y9.16%
Revenue Next 3Y6.92%
Revenue Next 5Y1.66%
EBIT growth 1Y10%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year70.34%
EBIT Next 3Y23.67%
EBIT Next 5Y16.85%
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%