ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENB - CA29250N1050 - Common Stock
48.09 USD
-0.05 (-0.1%)
48.09 USD
0 (0%)
ENB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 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. While showing a medium growth rate, ENB is valued expensive at the moment. 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.
Each year in the past 5 years ENB has been profitable.
Each year in the past 5 years ENB had a positive operating cash flow.
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.
ENB has a worse Return On Invested Capital (4.12%) than 63.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 20.88%.
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
The Profit Margin of ENB (8.74%) is comparable to the rest of the industry.
ENB's Profit Margin has declined in the last couple of years.
ENB has a Operating Margin (16.91%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ENB has grown nicely.
ENB's Gross Margin of 41.11% is in line compared to the rest of the industry. ENB outperforms 49.28% of its industry peers.
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.
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.
ENB has a worse debt/assets ratio than last year.
2.2 Solvency
ENB has an Altman-Z score of 0.90. 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 (0.90) which is in line with 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's Debt to FCF ratio of 25.58 is in line compared to the rest of the industry. ENB outperforms 43.54% of its industry peers.
ENB has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.56, ENB is not doing good in the industry: 76.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.57
WACC7.18%
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.
ENB has a worse Current ratio (0.80) than 68.42% 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.
ENB has a worse Quick ratio (0.68) than 68.90% of its industry peers.
| 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%.
ENB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
The Revenue has grown by 32.29% 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)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.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y4.84%
EPS Next 2Y6.24%
EPS Next 3Y7.32%
EPS Next 5Y7.51%
Revenue Next Year33.14%
Revenue Next 2Y15.47%
Revenue Next 3Y11.16%
Revenue Next 5Y7.45%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 23.23, ENB is valued on the expensive side.
ENB's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.49, ENB is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.21, the valuation of ENB can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ENB.
ENB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 21.21 |
4.2 Price Multiples
ENB's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ENB is more expensive than 66.51% 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 | 36.06 | ||
| EV/EBITDA | 15.04 |
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)4.8
PEG (5Y)20.98
EPS Next 2Y6.24%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 5.77%, which is a nice return.
ENB's Dividend Yield is a higher than the industry average which is at 5.71.
Compared to an average S&P500 Dividend Yield of 2.31, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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 2Y6.24%
EPS Next 3Y7.32%
48.09
-0.05 (-0.1%)
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 Cap104.90B
Revenue(TTM)64.23B
Net Income(TTM)5.61B
Analysts72.14
Price Target50.47 (4.95%)
Short Float %2.15%
Short Ratio11.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
Yearly Dividend2.76
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)1.62%
PT rev (3m)2.98%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-2.16%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)5.69%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)5.13%
Revenue NY rev (3m)4.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 21.21 | ||
| P/S | 2.28 | ||
| P/FCF | 36.06 | ||
| P/OCF | 11.4 | ||
| P/B | 2.24 | ||
| P/tB | 5.79 | ||
| EV/EBITDA | 15.04 |
EPS(TTM)2.07
EY4.3%
EPS(NY)2.27
Fwd EY4.72%
FCF(TTM)1.33
FCFY2.77%
OCF(TTM)4.22
OCFY8.77%
SpS21.13
BVpS21.44
TBVpS8.3
PEG (NY)4.8
PEG (5Y)20.98
Graham Number31.6
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
WACC7.18%
ROIC/WACC0.57
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 2Y6.24%
EPS Next 3Y7.32%
EPS Next 5Y7.51%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%-1.63%
Revenue Next Year33.14%
Revenue Next 2Y15.47%
Revenue Next 3Y11.16%
Revenue Next 5Y7.45%
EBIT growth 1Y13.39%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year74.02%
EBIT Next 3Y24.16%
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 23.23 and the Price/Book (PB) ratio is 2.24.
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.