ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENB - CA29250N1050 - Common Stock
47.53 USD
+0.08 (+0.17%)
47.59 USD
+0.06 (+0.13%)
Taking everything into account, ENB scores 4 out of 10 in our fundamental rating. ENB was compared to 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. 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.
ENB had positive earnings in each of the past 5 years.
In the past 5 years ENB always reported a positive cash flow from operatings.
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 of 8.61%. This is comparable to the rest of the industry: ENB outperforms 57.89% of its industry peers.
The Return On Invested Capital of ENB (4.12%) is worse than 62.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 21.18%.
The 3 year average ROIC (3.99%) for ENB is below the current ROIC(4.12%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of ENB has declined.
ENB has a Operating Margin (16.91%) which is comparable to the rest of the industry.
ENB's Operating Margin has improved in the last couple of years.
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.
Compared to 1 year ago, ENB has more shares outstanding
ENB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ENB has a worse debt to assets ratio.
2.2 Solvency
ENB has an Altman-Z score of 0.88. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.88, ENB is in line with its industry, outperforming 44.50% of the companies in the same industry.
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 (25.58) which is in line with its industry peers.
ENB has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
ENB has a Debt to Equity ratio of 1.56. This is in the lower half of the industry: ENB underperforms 75.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.58
WACC7.11%
2.3 Liquidity
ENB has a Current 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.
With a Current ratio value of 0.80, ENB is not doing good in the industry: 67.94% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that ENB may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, ENB is not doing good in the industry: 67.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.43%.
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 32.29%.
The Revenue has been growing slightly by 1.32% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.51% on average over the next years.
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 Y4.84%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
EPS Next 5Y7.51%
Revenue Next Year34.15%
Revenue Next 2Y15.77%
Revenue Next 3Y11.41%
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
ENB is valuated rather expensively with a Price/Earnings ratio of 22.53.
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 26.92, ENB is valued at the same level.
With a Price/Forward Earnings ratio of 20.81, ENB is valued on the expensive side.
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 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 20.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than 66.03% 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 | 34.99 | ||
| EV/EBITDA | 14.77 |
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)4.66
PEG (5Y)20.34
EPS Next 2Y5.66%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 5.98%, which is a nice return.
ENB's Dividend Yield is a higher than the industry average which is at 3.93.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y5.66%
EPS Next 3Y6.96%
47.53
+0.08 (+0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners55.47%
Inst Owner Change-2.4%
Ins Owners0.05%
Ins Owner Change0%
Market Cap103.68B
Revenue(TTM)64.23B
Net Income(TTM)5.61B
Analysts72.14
Price Target51.47 (8.29%)
Short Float %0.72%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
Yearly Dividend2.81
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)2.9%
PT rev (3m)4.24%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)5.94%
Revenue NY rev (3m)4.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 20.81 | ||
| P/S | 2.21 | ||
| P/FCF | 34.99 | ||
| P/OCF | 11.06 | ||
| P/B | 2.18 | ||
| P/tB | 5.62 | ||
| EV/EBITDA | 14.77 |
EPS(TTM)2.11
EY4.44%
EPS(NY)2.28
Fwd EY4.81%
FCF(TTM)1.36
FCFY2.86%
OCF(TTM)4.3
OCFY9.04%
SpS21.52
BVpS21.84
TBVpS8.46
PEG (NY)4.66
PEG (5Y)20.34
Graham Number32.2
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 | 0.88 |
F-Score5
WACC7.11%
ROIC/WACC0.58
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 Y4.84%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
EPS Next 5Y7.51%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%-1.63%
Revenue Next Year34.15%
Revenue Next 2Y15.77%
Revenue Next 3Y11.41%
Revenue Next 5Y7.45%
EBIT growth 1Y13.39%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year73.94%
EBIT Next 3Y24.05%
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 22.53 and the Price/Book (PB) ratio is 2.18.
What is the earnings growth outlook for ENBRIDGE INC?
The Earnings per Share (EPS) of ENBRIDGE INC (ENB) is expected to grow by 4.84% in the next year.