ENBRIDGE INC - ENBCN 5.672 PERP (ENB-PF-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENB-PF-A - CA29250N6265
22.91 CAD
+0.04 (+0.17%)
Overall ENB-PF-A gets a fundamental rating of 5 out of 10. We evaluated ENB-PF-A against 214 industry peers in the Oil, Gas & Consumable Fuels industry. ENB-PF-A has an excellent profitability rating, but there are concerns on its financial health. ENB-PF-A scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ENB-PF-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ENB-PF-A was profitable.
- ENB-PF-A had a positive operating cash flow in the past year.
- ENB-PF-A had positive earnings in each of the past 5 years.
- ENB-PF-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ENB-PF-A has a Return On Assets of 2.59%. This is in the better half of the industry: ENB-PF-A outperforms 62.62% of its industry peers.
- Looking at the Return On Equity, with a value of 8.61%, ENB-PF-A is in the better half of the industry, outperforming 70.56% of the companies in the same industry.
- ENB-PF-A has a better Return On Invested Capital (4.12%) than 68.22% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ENB-PF-A is below the industry average of 6.53%.
- The last Return On Invested Capital (4.12%) for ENB-PF-A 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
- ENB-PF-A has a Profit Margin of 8.74%. This is in the better half of the industry: ENB-PF-A outperforms 67.29% of its industry peers.
- ENB-PF-A's Profit Margin has declined in the last couple of years.
- ENB-PF-A has a Operating Margin of 16.91%. This is in the better half of the industry: ENB-PF-A outperforms 69.16% of its industry peers.
- In the last couple of years the Operating Margin of ENB-PF-A has grown nicely.
- ENB-PF-A's Gross Margin of 41.11% is fine compared to the rest of the industry. ENB-PF-A outperforms 62.15% of its industry peers.
- In the last couple of years the Gross Margin of ENB-PF-A has grown nicely.
| 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-PF-A is destroying value.
- ENB-PF-A has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for ENB-PF-A has been increased compared to 5 years ago.
- The debt/assets ratio for ENB-PF-A is higher compared to a year ago.
2.2 Solvency
- ENB-PF-A has an Altman-Z score of 0.52. This is a bad value and indicates that ENB-PF-A is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of ENB-PF-A (0.52) is comparable to the rest of the industry.
- The Debt to FCF ratio of ENB-PF-A is 25.58, which is on the high side as it means it would take ENB-PF-A, 25.58 years of fcf income to pay off all of its debts.
- ENB-PF-A has a better Debt to FCF ratio (25.58) than 65.89% of its industry peers.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that ENB-PF-A has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.56, ENB-PF-A is not doing good in the industry: 65.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.59
WACC6.99%
2.3 Liquidity
- ENB-PF-A has a Current Ratio of 0.80. This is a bad value and indicates that ENB-PF-A is not financially healthy enough and could expect problems in meeting its short term obligations.
- ENB-PF-A's Current ratio of 0.80 is in line compared to the rest of the industry. ENB-PF-A outperforms 52.80% of its industry peers.
- ENB-PF-A has a Quick Ratio of 0.80. This is a bad value and indicates that ENB-PF-A is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.68, ENB-PF-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.43% over the past year.
- ENB-PF-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
- Looking at the last year, ENB-PF-A shows a very strong growth in Revenue. The Revenue has grown by 32.29%.
- Measured over the past years, ENB-PF-A shows a small growth in Revenue. The Revenue has been growing by 1.32% on average per year.
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-PF-A will show a small growth in Earnings Per Share. The EPS will grow by 7.06% on average per year.
- Based on estimates for the next years, ENB-PF-A will show a small growth in Revenue. The Revenue will grow by 7.24% on average per year.
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
- 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 7.93, the valuation of ENB-PF-A can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of ENB-PF-A indicates a rather cheap valuation: ENB-PF-A is cheaper than 84.58% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, ENB-PF-A is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.33, the valuation of ENB-PF-A can be described as very cheap.
- 85.51% of the companies in the same industry are more expensive than ENB-PF-A, based on the Price/Forward Earnings ratio.
- ENB-PF-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.33 |
4.2 Price Multiples
- ENB-PF-A's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ENB-PF-A is cheaper than 65.42% of the companies in the same industry.
- ENB-PF-A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ENB-PF-A is cheaper than 78.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.33 | ||
| EV/EBITDA | 9.18 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ENB-PF-A may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)7.16
EPS Next 2Y5.66%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
- ENB-PF-A has a Yearly Dividend Yield of 5.26%, which is a nice return.
- ENB-PF-A's Dividend Yield is rather good when compared to the industry average which is at 2.82. ENB-PF-A pays more dividend than 82.24% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ENB-PF-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
5.2 History
- The dividend of ENB-PF-A has a limited annual growth rate of 4.10%.
- ENB-PF-A has been paying a dividend for at least 10 years, so it has a reliable track record.
- ENB-PF-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.1%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- ENB-PF-A pays out 152.61% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of ENB-PF-A 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 - ENBCN 5.672 PERP / ENB-PF-A.CA FAQ
What is the fundamental rating for ENB-PF-A stock?
ChartMill assigns a fundamental rating of 5 / 10 to ENB-PF-A.CA.
What is the valuation status of ENBRIDGE INC - ENBCN 5.672 PERP (ENB-PF-A.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to ENBRIDGE INC - ENBCN 5.672 PERP (ENB-PF-A.CA). This can be considered as Undervalued.
Can you provide the profitability details for ENBRIDGE INC - ENBCN 5.672 PERP?
ENBRIDGE INC - ENBCN 5.672 PERP (ENB-PF-A.CA) has a profitability rating of 7 / 10.
What is the valuation of ENBRIDGE INC - ENBCN 5.672 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ENBRIDGE INC - ENBCN 5.672 PERP (ENB-PF-A.CA) is 7.93 and the Price/Book (PB) ratio is 0.77.
What is the financial health of ENBRIDGE INC - ENBCN 5.672 PERP (ENB-PF-A.CA) stock?
The financial health rating of ENBRIDGE INC - ENBCN 5.672 PERP (ENB-PF-A.CA) is 2 / 10.