ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENB - CA29250N1050 - Common Stock
48.2 USD
+0.72 (+1.52%)
48 USD
-0.2 (-0.41%)
We assign a fundamental rating of 4 out of 10 to ENB. ENB was compared to 207 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 quite expensive at the moment. 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.
- Each year in the past 5 years ENB has been profitable.
- ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ENB has a Return On Assets of 2.59%. This is comparable to the rest of the industry: ENB outperforms 45.89% of its industry peers.
- ENB has a Return On Equity of 8.61%. This is comparable to the rest of the industry: ENB outperforms 57.00% of its industry peers.
- With a Return On Invested Capital value of 4.12%, ENB is not doing good in the industry: 61.84% of the companies in the same industry are doing better.
- ENB had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 21.94%.
- 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
- ENB has a Profit Margin (8.74%) 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 16.91%. This is comparable to the rest of the industry: ENB outperforms 51.21% of its industry peers.
- In the last couple of years the Operating Margin of ENB has grown nicely.
- With a Gross Margin value of 41.11%, ENB perfoms like the industry average, outperforming 50.24% of the companies in the same industry.
- 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
- Compared to 5 years ago, ENB has more shares outstanding
- ENB has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.89, we must say that ENB is in the distress zone and has some risk of bankruptcy.
- ENB has a Altman-Z score of 0.89. This is comparable to the rest of the industry: ENB outperforms 42.03% of its industry peers.
- The Debt to FCF ratio of ENB is 25.58, which is on the high side as it means it would take ENB, 25.58 years of fcf income to pay off all of its debts.
- ENB has a Debt to FCF ratio (25.58) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that ENB has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.56, ENB is not doing good in the industry: 74.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.56
WACC7.29%
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: 68.60% 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: 67.63% 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%.
- 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)7.43%
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
- ENB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.06% yearly.
- Based on estimates for the next years, ENB will show a small growth in Revenue. The Revenue will grow by 7.24% on average per year.
EPS Next Y4.67%
EPS Next 2Y5.39%
EPS Next 3Y6.44%
EPS Next 5Y7.06%
Revenue Next Year34.15%
Revenue Next 2Y15.77%
Revenue Next 3Y11.41%
Revenue Next 5Y7.24%
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
- Based on the Price/Earnings ratio of 22.95, the valuation of ENB can be described as rather expensive.
- 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 27.21, ENB is valued at the same level.
- ENB is valuated rather expensively with a Price/Forward Earnings ratio of 21.33.
- The rest of the industry has a similar Price/Forward Earnings ratio as ENB.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ENB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 21.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than the industry average as 66.18% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.69 | ||
| EV/EBITDA | 14.95 |
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)4.92
PEG (5Y)20.73
EPS Next 2Y5.39%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
- ENB has a Yearly Dividend Yield of 5.93%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.73, ENB pays a bit more dividend than its industry peers.
- ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
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 2Y5.39%
EPS Next 3Y6.44%
ENBRIDGE INC / ENB FAQ
What is the fundamental rating for ENB stock?
ChartMill assigns a fundamental rating of 4 / 10 to ENB.
What is the valuation status for ENB stock?
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.
What is the expected EPS growth for ENBRIDGE INC (ENB) stock?
The Earnings per Share (EPS) of ENBRIDGE INC (ENB) is expected to grow by 4.67% in the next year.
Is the dividend of ENBRIDGE INC sustainable?
The dividend rating of ENBRIDGE INC (ENB) is 7 / 10 and the dividend payout ratio is 152.61%.