ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENB - CA29250N1050 - Common Stock
48.2 USD
+0.72 (+1.52%)
48 USD
-0.2 (-0.41%)
We assign a fundamental rating of 4 out of 10 to ENB. ENB was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ENB while its profitability can be described as average. While showing a medium growth rate, ENB is valued expensive at the moment. 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.
- In the past 5 years ENB always reported a positive cash flow from operatings.
1.2 Ratios
- ENB has a Return On Assets of 2.59%. This is comparable to the rest of the industry: ENB outperforms 45.89% of its industry peers.
- With a Return On Equity value of 8.61%, ENB perfoms like the industry average, outperforming 57.00% of the companies in the same industry.
- With a Return On Invested Capital value of 4.12%, ENB is not doing good in the industry: 61.84% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 21.94%.
- 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 54.59% of the companies in the same industry.
- ENB's Profit Margin has declined in the last couple of years.
- ENB's Operating Margin of 16.91% is in line compared to the rest of the industry. ENB outperforms 51.21% of its industry peers.
- In the last couple of years the Operating Margin of ENB has grown nicely.
- Looking at the Gross Margin, with a value of 41.11%, ENB is in line with its industry, outperforming 50.24% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENB is destroying value.
- The number of shares outstanding for ENB has been increased compared to 1 year ago.
- The number of shares outstanding for ENB has been increased compared to 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 0.89. 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 (0.89) which is in line with 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.
- ENB's Debt to FCF ratio of 25.58 is in line compared to the rest of the industry. ENB outperforms 43.96% of its industry peers.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that ENB has dependencies on debt financing.
- ENB has a Debt to Equity ratio of 1.56. This is in the lower half of the industry: ENB underperforms 74.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.58
WACC7.13%
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.
- The Current ratio of ENB (0.80) is worse than 68.60% 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.
- The Quick ratio of ENB (0.68) is worse than 67.63% 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%.
- 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
- 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
- ENB is valuated rather expensively with a Price/Earnings ratio of 23.06.
- 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 (27.21), we can say ENB is valued inline with the index average.
- With a Price/Forward Earnings ratio of 21.30, ENB is valued on the expensive side.
- ENB's Price/Forward Earnings is on the same level as the industry average.
- ENB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 21.3 |
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 66.18% 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 | 35.83 | ||
| EV/EBITDA | 14.85 |
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)4.77
PEG (5Y)20.83
EPS Next 2Y5.66%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
- ENB has a Yearly Dividend Yield of 5.26%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.75, ENB pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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 2Y5.66%
EPS Next 3Y6.96%
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%.