ENBRIDGE INC (ENB) Stock Fundamental Analysis
NYSE:ENB - New York Stock Exchange, Inc. - CA29250N1050 - Common Stock - Currency: USD
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. 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. 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.
In the past 5 years ENB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.68%, ENB is in line with its industry, outperforming 45.71% of the companies in the same industry.
With a Return On Equity value of 8.64%, ENB perfoms like the industry average, outperforming 53.81% of the companies in the same industry.
ENB has a Return On Invested Capital of 4.07%. This is in the lower half of the industry: ENB underperforms 63.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ENB is significantly below the industry average of 23.80%.
The 3 year average ROIC (3.99%) for ENB is below the current ROIC(4.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 8.64% | ||
| ROIC | 4.07% |
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
Looking at the Profit Margin, with a value of 9.67%, ENB is in line with its industry, outperforming 55.24% of the companies in the same industry.
In the last couple of years the Profit Margin of ENB has declined.
The Operating Margin of ENB (17.53%) is comparable to the rest of the industry.
ENB's Operating Margin has improved in the last couple of years.
The Gross Margin of ENB (42.37%) is comparable to the rest of the industry.
ENB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.53% | ||
| PM (TTM) | 9.67% | ||
| GM | 42.37% |
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
The number of shares outstanding for ENB has been increased compared to 5 years ago.
Compared to 1 year ago, ENB has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that ENB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.83, ENB perfoms like the industry average, outperforming 41.43% of the companies in the same industry.
ENB has a debt to FCF ratio of 20.56. This is a negative value and a sign of low solvency as ENB would need 20.56 years to pay back of all of its debts.
ENB has a Debt to FCF ratio (20.56) which is in line with its industry peers.
ENB has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
ENB has a worse Debt to Equity ratio (1.44) than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.53
WACC7.7%
2.3 Liquidity
ENB has a Current Ratio of 0.73. 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 0.73, ENB is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.66 indicates that ENB may have some problems paying its short term obligations.
ENB has a Quick ratio of 0.66. This is in the lower half of the industry: ENB underperforms 70.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.75%.
The Earnings Per Share has been growing slightly by 1.11% on average over the past years.
Looking at the last year, ENB shows a very strong growth in Revenue. The Revenue has grown by 43.00%.
ENB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)1.75%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%11.96%
Revenue 1Y (TTM)43%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%67.62%
3.2 Future
The Earnings Per Share is expected to grow by 7.83% on average over the next years.
The Revenue is expected to grow by 6.39% on average over the next years.
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y7.83%
Revenue Next Year14.97%
Revenue Next 2Y9.15%
Revenue Next 3Y7.36%
Revenue Next 5Y6.39%
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 21.37 indicates a rather expensive valuation of ENB.
ENB's Price/Earnings ratio is in line with the industry average.
ENB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
Based on the Price/Forward Earnings ratio of 19.10, the valuation of ENB can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENB is on the same level as its industry peers.
ENB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than 63.81% 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 | 26.98 | ||
| EV/EBITDA | 14.59 |
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)2.57
PEG (5Y)19.3
EPS Next 2Y7.73%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 6.60%, which is a nice return.
ENB's Dividend Yield is a higher than the industry average which is at 6.41.
Compared to an average S&P500 Dividend Yield of 2.35, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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 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
ENB pays out 142.15% 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.
DP142.15%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
45.09
+0.33 (+0.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.95%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap98.31B
Analysts72.14
Price Target48.71 (8.03%)
Short Float %1.46%
Short Ratio8.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
Yearly Dividend2.8
Dividend Growth(5Y)4.1%
DP142.15%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.86%
Min EPS beat(2)-0.67%
Max EPS beat(2)6.39%
EPS beat(4)1
Avg EPS beat(4)-1.5%
Min EPS beat(4)-9.75%
Max EPS beat(4)6.39%
EPS beat(8)3
Avg EPS beat(8)-0.03%
EPS beat(12)4
Avg EPS beat(12)-1.51%
EPS beat(16)6
Avg EPS beat(16)-0.67%
Revenue beat(2)2
Avg Revenue beat(2)68.68%
Min Revenue beat(2)28.78%
Max Revenue beat(2)108.58%
Revenue beat(4)4
Avg Revenue beat(4)87.88%
Min Revenue beat(4)28.78%
Max Revenue beat(4)117.73%
Revenue beat(8)5
Avg Revenue beat(8)39.78%
Revenue beat(12)6
Avg Revenue beat(12)23.62%
Revenue beat(16)10
Avg Revenue beat(16)21.8%
PT rev (1m)0.72%
PT rev (3m)6.66%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-12.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)5.3%
Revenue NQ rev (3m)-8.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 19.1 | ||
| P/S | 2.22 | ||
| P/FCF | 26.98 | ||
| P/OCF | 10.82 | ||
| P/B | 1.98 | ||
| P/tB | 4.99 | ||
| EV/EBITDA | 14.59 |
EPS(TTM)2.11
EY4.68%
EPS(NY)2.36
Fwd EY5.24%
FCF(TTM)1.67
FCFY3.71%
OCF(TTM)4.17
OCFY9.24%
SpS20.31
BVpS22.74
TBVpS9.04
PEG (NY)2.57
PEG (5Y)19.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 8.64% | ||
| ROCE | 5.31% | ||
| ROIC | 4.07% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 5.17% | ||
| OM | 17.53% | ||
| PM (TTM) | 9.67% | ||
| GM | 42.37% | ||
| FCFM | 8.23% |
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%
ROICexcg growth 3Y-2.31%
ROICexcg 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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Debt/EBITDA | 6.1 | ||
| Cap/Depr | 139.09% | ||
| Cap/Sales | 12.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.81% | ||
| Profit Quality | 85.09% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.83 |
F-Score5
WACC7.7%
ROIC/WACC0.53
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)1.75%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%11.96%
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y7.83%
Revenue 1Y (TTM)43%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%67.62%
Revenue Next Year14.97%
Revenue Next 2Y9.15%
Revenue Next 3Y7.36%
Revenue Next 5Y6.39%
EBIT growth 1Y17.72%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year75.25%
EBIT Next 3Y24.1%
EBIT Next 5Y15.89%
FCF growth 1Y-30.74%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y2.84%
OCF growth 3Y10.83%
OCF growth 5Y6.04%