ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENB - CA29250N1050 - Common Stock
46.83 USD
+0.2 (+0.43%)
46.99 USD
+0.16 (+0.34%)
Taking everything into account, ENB scores 4 out of 10 in our fundamental rating. ENB was compared to 210 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 valied quite expensively at the moment, while 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.
ENB had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.59%, ENB is in line with its industry, outperforming 46.67% of the companies in the same industry.
With a Return On Equity value of 8.61%, ENB perfoms like the industry average, outperforming 58.10% of the companies in the same industry.
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 21.09%.
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
The Profit Margin of ENB (8.74%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ENB has declined.
Looking at the Operating Margin, with a value of 16.91%, ENB is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ENB has grown nicely.
ENB has a Gross Margin (41.11%) which is in line with 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENB is destroying value.
Compared to 1 year ago, ENB has more shares outstanding
ENB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ENB is higher compared to a year ago.
2.2 Solvency
ENB has an Altman-Z score of 0.88. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.88, ENB is in line with its industry, outperforming 44.76% of the companies in the same industry.
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 of 25.58. This is comparable to the rest of the industry: ENB outperforms 44.29% 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.
ENB has a worse Debt to Equity ratio (1.56) than 75.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.58
WACC7.1%
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 68.10% 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 Quick ratio of 0.68. This is in the lower half of the industry: ENB underperforms 67.62% 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%.
Measured over the past 5 years, ENB shows a small growth in Earnings Per Share. The EPS has been growing by 1.11% on average per year.
Looking at the last year, ENB shows a very strong growth in Revenue. The Revenue has grown by 32.29%.
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
Based on estimates for the next years, ENB will show a small growth in Earnings Per Share. The EPS will grow by 7.51% on average per year.
Based on estimates for the next years, ENB will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
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
A Price/Earnings ratio of 22.30 indicates a rather expensive valuation of ENB.
ENB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ENB to the average of the S&P500 Index (26.61), we can say ENB is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.40, ENB is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENB is on the same level as its industry peers.
ENB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 20.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than 65.71% 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 | 34.69 | ||
| EV/EBITDA | 14.7 |
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)4.61
PEG (5Y)20.14
EPS Next 2Y6.24%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 6.02%, which is a nice return.
ENB's Dividend Yield is a higher than the industry average which is at 3.95.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
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 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.
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%
46.83
+0.2 (+0.43%)
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 Cap102.15B
Revenue(TTM)64.23B
Net Income(TTM)5.61B
Analysts72.14
Price Target50.47 (7.77%)
Short Float %0.72%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
Yearly Dividend2.78
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)2.27%
PT rev (3m)2.21%
EPS NQ rev (1m)0.99%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)1.76%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)5.13%
Revenue NY rev (3m)4.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 20.4 | ||
| P/S | 2.19 | ||
| P/FCF | 34.69 | ||
| P/OCF | 10.97 | ||
| P/B | 2.16 | ||
| P/tB | 5.57 | ||
| EV/EBITDA | 14.7 |
EPS(TTM)2.1
EY4.48%
EPS(NY)2.3
Fwd EY4.9%
FCF(TTM)1.35
FCFY2.88%
OCF(TTM)4.27
OCFY9.12%
SpS21.39
BVpS21.71
TBVpS8.4
PEG (NY)4.61
PEG (5Y)20.14
Graham Number32.03
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 | 0.88 |
F-Score5
WACC7.1%
ROIC/WACC0.58
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 22.3 and the Price/Book (PB) ratio is 2.16.
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.