ENBRIDGE INC - ENBCN 5.395 PERP (ENB-PF-E.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENB-PF-E - CA29250N5762
22.75 CAD
+0.04 (+0.18%)
Taking everything into account, ENB-PF-E scores 5 out of 10 in our fundamental rating. ENB-PF-E was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. While ENB-PF-E belongs to the best of the industry regarding profitability, there are concerns on its financial health. ENB-PF-E scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ENB-PF-E also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ENB-PF-E was profitable.
- In the past year ENB-PF-E had a positive cash flow from operations.
- Each year in the past 5 years ENB-PF-E has been profitable.
- In the past 5 years ENB-PF-E always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 2.59%, ENB-PF-E is doing good in the industry, outperforming 63.59% of the companies in the same industry.
- ENB-PF-E has a better Return On Equity (8.61%) than 71.84% of its industry peers.
- ENB-PF-E's Return On Invested Capital of 4.12% is fine compared to the rest of the industry. ENB-PF-E outperforms 68.93% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ENB-PF-E is below the industry average of 6.62%.
- The last Return On Invested Capital (4.12%) for ENB-PF-E 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
- Looking at the Profit Margin, with a value of 8.74%, ENB-PF-E is in the better half of the industry, outperforming 68.93% of the companies in the same industry.
- In the last couple of years the Profit Margin of ENB-PF-E has declined.
- The Operating Margin of ENB-PF-E (16.91%) is better than 70.39% of its industry peers.
- ENB-PF-E's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 41.11%, ENB-PF-E is doing good in the industry, outperforming 63.59% of the companies in the same industry.
- ENB-PF-E'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-PF-E is destroying value.
- Compared to 1 year ago, ENB-PF-E has more shares outstanding
- ENB-PF-E has more shares outstanding than it did 5 years ago.
- ENB-PF-E has a worse debt/assets ratio than last year.
2.2 Solvency
- ENB-PF-E has an Altman-Z score of 0.52. This is a bad value and indicates that ENB-PF-E is not financially healthy and even has some risk of bankruptcy.
- ENB-PF-E has a Altman-Z score of 0.52. This is comparable to the rest of the industry: ENB-PF-E outperforms 45.15% of its industry peers.
- ENB-PF-E has a debt to FCF ratio of 25.58. This is a negative value and a sign of low solvency as ENB-PF-E would need 25.58 years to pay back of all of its debts.
- ENB-PF-E's Debt to FCF ratio of 25.58 is fine compared to the rest of the industry. ENB-PF-E outperforms 66.50% of its industry peers.
- ENB-PF-E has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.56, ENB-PF-E is not doing good in the industry: 64.56% 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/WACC0.58
WACC7.12%
2.3 Liquidity
- A Current Ratio of 0.80 indicates that ENB-PF-E may have some problems paying its short term obligations.
- ENB-PF-E has a Current ratio (0.80) which is comparable to the rest of the industry.
- ENB-PF-E has a Quick Ratio of 0.80. This is a bad value and indicates that ENB-PF-E is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.68, ENB-PF-E is in line with its industry, outperforming 50.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- ENB-PF-E shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.43%.
- ENB-PF-E shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
- The Revenue has grown by 32.29% in the past year. This is a very strong growth!
- 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-PF-E 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-E will show a small growth in Revenue. The Revenue will grow by 7.24% on average per year.
EPS Next Y4.67%
EPS Next 2Y5.39%
EPS Next 3Y6.44%
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
- Based on the Price/Earnings ratio of 7.87, the valuation of ENB-PF-E can be described as very cheap.
- Based on the Price/Earnings ratio, ENB-PF-E is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
- ENB-PF-E's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- ENB-PF-E is valuated cheaply with a Price/Forward Earnings ratio of 7.32.
- ENB-PF-E's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENB-PF-E is cheaper than 87.38% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, ENB-PF-E is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 7.32 |
4.2 Price Multiples
- ENB-PF-E's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ENB-PF-E is cheaper than 66.02% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ENB-PF-E is valued a bit cheaper than 79.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.24 | ||
| EV/EBITDA | 9.16 |
4.3 Compensation for Growth
- ENB-PF-E's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ENB-PF-E has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.69
PEG (5Y)7.11
EPS Next 2Y5.39%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
- ENB-PF-E has a Yearly Dividend Yield of 5.93%, which is a nice return.
- ENB-PF-E's Dividend Yield is rather good when compared to the industry average which is at 3.29. ENB-PF-E pays more dividend than 86.41% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ENB-PF-E pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
5.2 History
- The dividend of ENB-PF-E has a limited annual growth rate of 4.10%.
- ENB-PF-E has paid a dividend for at least 10 years, which is a reliable track record.
- ENB-PF-E has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.1%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 152.61% of the earnings are spent on dividend by ENB-PF-E. This is not a sustainable payout ratio.
- ENB-PF-E's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP152.61%
EPS Next 2Y5.39%
EPS Next 3Y6.44%
ENBRIDGE INC - ENBCN 5.395 PERP / ENB-PF-E.CA FAQ
What is the fundamental rating for ENB-PF-E stock?
ChartMill assigns a fundamental rating of 5 / 10 to ENB-PF-E.CA.
What is the valuation status for ENB-PF-E stock?
ChartMill assigns a valuation rating of 7 / 10 to ENBRIDGE INC - ENBCN 5.395 PERP (ENB-PF-E.CA). This can be considered as Undervalued.
How profitable is ENBRIDGE INC - ENBCN 5.395 PERP (ENB-PF-E.CA) stock?
ENBRIDGE INC - ENBCN 5.395 PERP (ENB-PF-E.CA) has a profitability rating of 7 / 10.
What is the financial health of ENBRIDGE INC - ENBCN 5.395 PERP (ENB-PF-E.CA) stock?
The financial health rating of ENBRIDGE INC - ENBCN 5.395 PERP (ENB-PF-E.CA) is 2 / 10.
Is the dividend of ENBRIDGE INC - ENBCN 5.395 PERP sustainable?
The dividend rating of ENBRIDGE INC - ENBCN 5.395 PERP (ENB-PF-E.CA) is 7 / 10 and the dividend payout ratio is 152.61%.