ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - NYSE:ENB - CA29250N1050 - Common Stock
47.88 USD
-0.38 (-0.79%)
47.87 USD
-0.01 (-0.02%)
We assign a fundamental rating of 4 out of 10 to ENB. ENB was compared to 210 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.
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 (8.61%) which is in line with its industry peers.
ENB's Return On Invested Capital of 4.12% is on the low side compared to the rest of the industry. ENB is outperformed by 62.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 21.72%.
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
ENB's Profit Margin of 8.74% is in line compared to the rest of the industry. ENB outperforms 53.81% of its industry peers.
ENB's Profit Margin has declined in the last couple of years.
ENB's Operating Margin of 16.91% is in line compared to the rest of the industry. ENB outperforms 49.52% of 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 comparable to the rest of the industry.
ENB's Gross Margin has improved in the last couple of years.
| 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
Compared to 5 years ago, ENB has more shares outstanding
The debt/assets ratio for ENB is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that ENB is in the distress zone and has some risk of bankruptcy.
ENB has a Altman-Z score of 0.90. This is comparable to the rest of the industry: ENB outperforms 44.29% of 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.
Looking at the Debt to FCF ratio, with a value of 25.58, ENB is in line with its industry, outperforming 43.81% of the companies in the same industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that ENB has dependencies on debt financing.
ENB has a worse Debt to Equity ratio (1.56) than 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.59
WACC6.92%
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.
Looking at the Current ratio, with a value of 0.80, ENB is doing worse than 66.19% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that ENB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.68, ENB is doing worse than 69.05% of the companies in the same industry.
| 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 7.65%.
The Earnings Per Share has been growing slightly by 1.11% on average over the past years.
ENB shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.29%.
ENB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)7.65%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%-15.33%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%0.8%
3.2 Future
The Earnings Per Share is expected to grow by 8.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.83% on average over the next years.
EPS Next Y7.76%
EPS Next 2Y7.08%
EPS Next 3Y7.08%
EPS Next 5Y8%
Revenue Next Year26.64%
Revenue Next 2Y11.77%
Revenue Next 3Y10.37%
Revenue Next 5Y6.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.13 indicates a rather expensive valuation of ENB.
The rest of the industry has a similar Price/Earnings ratio as ENB.
When comparing the Price/Earnings ratio of ENB to the average of the S&P500 Index (25.89), we can say ENB is valued inline with the index average.
The Price/Forward Earnings ratio is 20.91, which indicates a rather expensive current valuation of ENB.
ENB's Price/Forward Earnings ratio is in line with the industry average.
ENB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.13 | ||
| Fwd PE | 20.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENB indicates a slightly more expensive valuation: ENB is more expensive than 65.24% of the companies listed in the same industry.
ENB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.11 | ||
| EV/EBITDA | 15.05 |
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)2.98
PEG (5Y)20.89
EPS Next 2Y7.08%
EPS Next 3Y7.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.07%, ENB is a good candidate for dividend investing.
ENB's Dividend Yield is a higher than the industry average which is at 5.87.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
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 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 2Y7.08%
EPS Next 3Y7.08%
47.88
-0.38 (-0.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners56.25%
Inst Owner Change-2.47%
Ins Owners0.05%
Ins Owner Change0%
Market Cap104.42B
Revenue(TTM)64.23B
Net Income(TTM)5.61B
Analysts72.14
Price Target49.35 (3.07%)
Short Float %0.86%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
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)0.98%
Min EPS beat(2)-10.35%
Max EPS beat(2)12.31%
EPS beat(4)2
Avg EPS beat(4)1.92%
Min EPS beat(4)-10.35%
Max EPS beat(4)12.31%
EPS beat(8)3
Avg EPS beat(8)0.09%
EPS beat(12)4
Avg EPS beat(12)-1.13%
EPS beat(16)5
Avg EPS beat(16)-1.82%
Revenue beat(2)2
Avg Revenue beat(2)14.49%
Min Revenue beat(2)4.4%
Max Revenue beat(2)24.58%
Revenue beat(4)4
Avg Revenue beat(4)41.59%
Min Revenue beat(4)4.4%
Max Revenue beat(4)108.58%
Revenue beat(8)7
Avg Revenue beat(8)46.65%
Revenue beat(12)7
Avg Revenue beat(12)26.49%
Revenue beat(16)10
Avg Revenue beat(16)20.74%
PT rev (1m)0.46%
PT rev (3m)-0.09%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.71%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.13 | ||
| Fwd PE | 20.91 | ||
| P/S | 2.28 | ||
| P/FCF | 36.11 | ||
| P/OCF | 11.42 | ||
| P/B | 2.25 | ||
| P/tB | 5.8 | ||
| EV/EBITDA | 15.05 |
EPS(TTM)2.07
EY4.32%
EPS(NY)2.29
Fwd EY4.78%
FCF(TTM)1.33
FCFY2.77%
OCF(TTM)4.19
OCFY8.76%
SpS21.01
BVpS21.32
TBVpS8.25
PEG (NY)2.98
PEG (5Y)20.89
Graham Number31.51
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 | 0.9 |
F-Score5
WACC6.92%
ROIC/WACC0.59
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)7.65%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%-15.33%
EPS Next Y7.76%
EPS Next 2Y7.08%
EPS Next 3Y7.08%
EPS Next 5Y8%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%0.8%
Revenue Next Year26.64%
Revenue Next 2Y11.77%
Revenue Next 3Y10.37%
Revenue Next 5Y6.83%
EBIT growth 1Y13.39%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year74.86%
EBIT Next 3Y24.11%
EBIT Next 5Y16.29%
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 23.13 and the Price/Book (PB) ratio is 2.25.
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.