ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENB - CA29250N1050 - Common Stock
45.63 USD
+0.34 (+0.75%)
45.681 USD
+0.05 (+0.11%)
We assign a fundamental rating of 4 out of 10 to ENB. ENB was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. While ENB is still in line with the averages on profitability rating, there are concerns on its financial health. ENB is quite expensive at the moment. 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.
ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENB's Return On Assets of 2.59% is in line compared to the rest of the industry. ENB outperforms 46.15% of its industry peers.
The Return On Equity of ENB (8.61%) is comparable to the rest of the industry.
ENB has a worse Return On Invested Capital (4.12%) than 62.02% of its industry peers.
ENB had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 21.83%.
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
With a Profit Margin value of 8.74%, ENB perfoms like the industry average, outperforming 54.33% 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 in line with its industry peers.
ENB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.11%, ENB is in line with its industry, outperforming 50.00% of the companies in the same 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
ENB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ENB has more shares outstanding than it did 1 year ago.
ENB has more shares outstanding than it did 5 years ago.
ENB has a worse debt/assets ratio than last year.
2.2 Solvency
ENB has an Altman-Z score of 0.87. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
ENB has a Altman-Z score of 0.87. This is comparable to the rest of the industry: ENB outperforms 44.71% 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 44.23% of the companies in the same industry.
ENB has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
ENB has a worse Debt to Equity ratio (1.56) than 74.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.6
WACC6.88%
2.3 Liquidity
A Current Ratio of 0.80 indicates that ENB may have some problems paying its short term obligations.
ENB has a worse Current ratio (0.80) than 68.27% of its industry peers.
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.
With a Quick ratio value of 0.68, ENB is not doing good in the industry: 67.31% 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
The Earnings Per Share has been growing slightly by 7.43% over the past year.
ENB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
Looking at the last year, ENB shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to grow by 7.06% on average over the next years.
ENB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.24% yearly.
EPS Next Y4.84%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
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
The Price/Earnings ratio is 21.94, which indicates a rather expensive current valuation of ENB.
ENB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ENB to the average of the S&P500 Index (27.19), we can say ENB is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.27, ENB is valued on the expensive side.
ENB's Price/Forward Earnings ratio is in line with the industry average.
ENB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than 66.83% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ENB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.09 | ||
| EV/EBITDA | 14.55 |
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)4.54
PEG (5Y)19.81
EPS Next 2Y5.66%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 6.88%, which is a nice return.
ENB's Dividend Yield is a higher than the industry average which is at 3.91.
Compared to an average S&P500 Dividend Yield of 1.92, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
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 152.61% 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.
DP152.61%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
45.63
+0.34 (+0.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners55.5%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap99.53B
Revenue(TTM)64.23B
Net Income(TTM)5.61B
Analysts72.14
Price Target51.47 (12.8%)
Short Float %0.65%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
Yearly Dividend2.77
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)1.98%
PT rev (3m)4.78%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)5.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 20.27 | ||
| P/S | 2.15 | ||
| P/FCF | 34.09 | ||
| P/OCF | 10.78 | ||
| P/B | 2.12 | ||
| P/tB | 5.48 | ||
| EV/EBITDA | 14.55 |
EPS(TTM)2.08
EY4.56%
EPS(NY)2.25
Fwd EY4.93%
FCF(TTM)1.34
FCFY2.93%
OCF(TTM)4.23
OCFY9.28%
SpS21.21
BVpS21.52
TBVpS8.33
PEG (NY)4.54
PEG (5Y)19.81
Graham Number31.74
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 | 0.87 |
F-Score5
WACC6.88%
ROIC/WACC0.6
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 5Y7.06%
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 5Y7.24%
EBIT growth 1Y13.39%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year73.94%
EBIT Next 3Y24.05%
EBIT Next 5Y15.94%
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.
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 4.84% 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%.