ENBRIDGE INC (ENB) Stock Fundamental Analysis
NYSE:ENB - New York Stock Exchange, Inc. - CA29250N1050 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to ENB. ENB was compared to 212 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 has a expensive valuation and it also scores bad on growth. Finally ENB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ENB was profitable.
ENB had a positive operating cash flow in the past year.
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 3.05% is on the low side compared to the rest of the industry. ENB is outperformed by 63.59% of its industry peers.
ENB has a Return On Equity (9.55%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.61%, ENB is not doing good in the industry: 69.90% of the companies in the same industry are doing better.
ENB had an Average Return On Invested Capital over the past 3 years of 3.72%. This is significantly below the industry average of 28.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 9.55% | ||
| ROIC | 3.61% |
ROA(3y)2.71%
ROA(5y)2.65%
ROE(3y)7.8%
ROE(5y)7.26%
ROIC(3y)3.72%
ROIC(5y)3.76%
1.3 Margins
ENB has a Profit Margin (12.95%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ENB has grown nicely.
With a Operating Margin value of 19.72%, ENB perfoms like the industry average, outperforming 48.06% of the companies in the same industry.
ENB's Operating Margin has improved in the last couple of years.
ENB has a Gross Margin of 48.94%. This is comparable to the rest of the industry: ENB outperforms 53.88% of its industry peers.
ENB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.72% | ||
| PM (TTM) | 12.95% | ||
| GM | 48.94% |
OM growth 3Y0.93%
OM growth 5Y6.39%
PM growth 3Y20.57%
PM growth 5Y19.79%
GM growth 3Y2.95%
GM growth 5Y6.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENB is destroying value.
ENB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ENB has been increased compared to 5 years ago.
ENB has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that ENB is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.82, ENB is doing worse than 62.14% of the companies in the same industry.
ENB has a debt to FCF ratio of 13.61. This is a negative value and a sign of low solvency as ENB would need 13.61 years to pay back of all of its debts.
ENB has a Debt to FCF ratio of 13.61. This is comparable to the rest of the industry: ENB outperforms 41.26% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that ENB has dependencies on debt financing.
ENB has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: ENB underperforms 78.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 13.61 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.55
WACC6.58%
2.3 Liquidity
A Current Ratio of 0.62 indicates that ENB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.62, ENB is doing worse than 83.01% of the companies in the same industry.
ENB has a Quick Ratio of 0.62. This is a bad value and indicates that ENB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ENB (0.54) is worse than 82.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for ENB have decreased by -3.24% in the last year.
The Earnings Per Share has been growing slightly by 0.88% on average over the past years.
ENB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
Measured over the past years, ENB shows a decrease in Revenue. The Revenue has been decreasing by -1.21% on average per year.
EPS 1Y (TTM)-3.24%
EPS 3Y4.71%
EPS 5Y0.88%
EPS Q2Q%-11.29%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Sales Q2Q%51.18%
3.2 Future
The Earnings Per Share is expected to grow by 5.80% on average over the next years.
The Revenue is expected to grow by 1.98% on average over the next years.
EPS Next Y-0.45%
EPS Next 2Y4.93%
EPS Next 3Y4.79%
EPS Next 5Y5.8%
Revenue Next Year3.29%
Revenue Next 2Y-9.96%
Revenue Next 3Y-4.42%
Revenue Next 5Y1.98%
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
Based on the Price/Earnings ratio of 23.38, the valuation of ENB can be described as rather expensive.
Based on the Price/Earnings ratio, ENB is valued a bit more expensive than 64.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, ENB is valued at the same level.
A Price/Forward Earnings ratio of 20.51 indicates a rather expensive valuation of ENB.
Based on the Price/Forward Earnings ratio, ENB is valued a bit more expensive than 61.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, ENB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.38 | ||
| Fwd PE | 20.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than 73.30% 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 | 19.6 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)26.47
EPS Next 2Y4.93%
EPS Next 3Y4.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.85%, ENB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.57, ENB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
5.2 History
On average, the dividend of ENB grows each year by 10.75%, which is quite nice.
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)10.75%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
129.64% of the earnings are spent on dividend by ENB. This is not a sustainable payout ratio.
ENB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP129.64%
EPS Next 2Y4.93%
EPS Next 3Y4.79%
ENBRIDGE INC
NYSE:ENB (2/4/2025, 8:04:00 PM)
Premarket: 44.19 +0.47 (+1.08%)43.72
+0.8 (+1.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners54.84%
Inst Owner Change-0.58%
Ins Owners0.05%
Ins Owner Change0%
Market Cap95.23B
Analysts71.54
Price Target44.19 (1.08%)
Short Float %1.08%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
Yearly Dividend3.45
Dividend Growth(5Y)10.75%
DP129.64%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.86%
Min EPS beat(2)-9.75%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-1.75%
Min EPS beat(4)-9.75%
Max EPS beat(4)11.79%
EPS beat(8)2
Avg EPS beat(8)-2.66%
EPS beat(12)3
Avg EPS beat(12)-3.06%
EPS beat(16)6
Avg EPS beat(16)-0.74%
Revenue beat(2)2
Avg Revenue beat(2)107.08%
Min Revenue beat(2)96.43%
Max Revenue beat(2)117.73%
Revenue beat(4)3
Avg Revenue beat(4)51.72%
Min Revenue beat(4)-15.94%
Max Revenue beat(4)117.73%
Revenue beat(8)3
Avg Revenue beat(8)18.94%
Revenue beat(12)6
Avg Revenue beat(12)13.79%
Revenue beat(16)8
Avg Revenue beat(16)11.98%
PT rev (1m)0.87%
PT rev (3m)6.77%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)-40.45%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)19.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.38 | ||
| Fwd PE | 20.51 | ||
| P/S | 2.83 | ||
| P/FCF | 19.6 | ||
| P/OCF | 10.76 | ||
| P/B | 2.09 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 15.82 |
EPS(TTM)1.87
EY4.28%
EPS(NY)2.13
Fwd EY4.88%
FCF(TTM)2.23
FCFY5.1%
OCF(TTM)4.06
OCFY9.29%
SpS15.47
BVpS20.96
TBVpS8.45
PEG (NY)N/A
PEG (5Y)26.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 9.55% | ||
| ROCE | 5.13% | ||
| ROIC | 3.61% | ||
| ROICexc | 3.65% | ||
| ROICexgc | 4.63% | ||
| OM | 19.72% | ||
| PM (TTM) | 12.95% | ||
| GM | 48.94% | ||
| FCFM | 14.42% |
ROA(3y)2.71%
ROA(5y)2.65%
ROE(3y)7.8%
ROE(5y)7.26%
ROIC(3y)3.72%
ROIC(5y)3.76%
ROICexc(3y)3.78%
ROICexc(5y)3.8%
ROICexgc(3y)4.91%
ROICexgc(5y)4.96%
ROCE(3y)5.3%
ROCE(5y)5.35%
ROICexcg growth 3Y1.83%
ROICexcg growth 5Y4.01%
ROICexc growth 3Y2.35%
ROICexc growth 5Y4.46%
OM growth 3Y0.93%
OM growth 5Y6.39%
PM growth 3Y20.57%
PM growth 5Y19.79%
GM growth 3Y2.95%
GM growth 5Y6.79%
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 13.61 | ||
| Debt/EBITDA | 6.08 | ||
| Cap/Depr | 116.17% | ||
| Cap/Sales | 11.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.77% | ||
| Profit Quality | 111.37% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.82 |
F-Score5
WACC6.58%
ROIC/WACC0.55
Cap/Depr(3y)142.49%
Cap/Depr(5y)149.35%
Cap/Sales(3y)12.47%
Cap/Sales(5y)12.63%
Profit Quality(3y)142.42%
Profit Quality(5y)127.27%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.24%
EPS 3Y4.71%
EPS 5Y0.88%
EPS Q2Q%-11.29%
EPS Next Y-0.45%
EPS Next 2Y4.93%
EPS Next 3Y4.79%
EPS Next 5Y5.8%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Sales Q2Q%51.18%
Revenue Next Year3.29%
Revenue Next 2Y-9.96%
Revenue Next 3Y-4.42%
Revenue Next 5Y1.98%
EBIT growth 1Y6.29%
EBIT growth 3Y4.71%
EBIT growth 5Y5.11%
EBIT Next Year71%
EBIT Next 3Y23.69%
EBIT Next 5Y16.27%
FCF growth 1Y68.66%
FCF growth 3Y30.86%
FCF growth 5Y24.19%
OCF growth 1Y34.11%
OCF growth 3Y13.23%
OCF growth 5Y6.22%