ENBRIDGE INC - ENBCN 5 1/2 PERP (ENB-PR-A.CA) Stock Fundamental Analysis
TSX:ENB-PR-A - Toronto Stock Exchange - CA29250N2041 - Currency: CAD
We assign a fundamental rating of 5 out of 10 to ENB-PR-A. ENB-PR-A was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ENB-PR-A while its profitability can be described as average. ENB-PR-A is valued quite cheap, while showing a decent growth score. This is a good combination! Finally ENB-PR-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ENB-PR-A was profitable.
In the past year ENB-PR-A had a positive cash flow from operations.
ENB-PR-A had positive earnings in each of the past 5 years.
ENB-PR-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENB-PR-A's Return On Assets of 2.31% is in line compared to the rest of the industry. ENB-PR-A outperforms 58.88% of its industry peers.
Looking at the Return On Equity, with a value of 7.67%, ENB-PR-A is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
ENB-PR-A has a Return On Invested Capital (3.85%) which is comparable to the rest of the industry.
ENB-PR-A had an Average Return On Invested Capital over the past 3 years of 3.99%. This is below the industry average of 7.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 7.67% | ||
| ROIC | 3.85% |
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-PR-A has a better Profit Margin (9.45%) than 66.36% of its industry peers.
In the last couple of years the Profit Margin of ENB-PR-A has declined.
ENB-PR-A has a better Operating Margin (18.31%) than 63.08% of its industry peers.
In the last couple of years the Operating Margin of ENB-PR-A has grown nicely.
Looking at the Gross Margin, with a value of 45.63%, ENB-PR-A is in the better half of the industry, outperforming 61.68% of the companies in the same industry.
ENB-PR-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.31% | ||
| PM (TTM) | 9.45% | ||
| GM | 45.63% |
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-PR-A is destroying value.
Compared to 1 year ago, ENB-PR-A has more shares outstanding
ENB-PR-A has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ENB-PR-A is higher compared to a year ago.
2.2 Solvency
ENB-PR-A has an Altman-Z score of 0.40. This is a bad value and indicates that ENB-PR-A is not financially healthy and even has some risk of bankruptcy.
ENB-PR-A has a Altman-Z score of 0.40. This is comparable to the rest of the industry: ENB-PR-A outperforms 50.47% of its industry peers.
The Debt to FCF ratio of ENB-PR-A is 17.93, which is on the high side as it means it would take ENB-PR-A, 17.93 years of fcf income to pay off all of its debts.
ENB-PR-A has a better Debt to FCF ratio (17.93) than 60.75% of its industry peers.
ENB-PR-A has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.43, ENB-PR-A is doing worse than 75.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Altman-Z | 0.4 |
ROIC/WACC0.52
WACC7.42%
2.3 Liquidity
A Current Ratio of 0.55 indicates that ENB-PR-A may have some problems paying its short term obligations.
The Current ratio of ENB-PR-A (0.55) is worse than 69.63% of its industry peers.
A Quick Ratio of 0.49 indicates that ENB-PR-A may have some problems paying its short term obligations.
With a Quick ratio value of 0.49, ENB-PR-A is not doing good in the industry: 71.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
ENB-PR-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.36%.
ENB-PR-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
ENB-PR-A shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.51%.
ENB-PR-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)0.36%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%17.19%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%43.54%
3.2 Future
The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
ENB-PR-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.28% yearly.
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y8.26%
Revenue Next Year14.85%
Revenue Next 2Y9.07%
Revenue Next 3Y7.26%
Revenue Next 5Y0.28%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.20, the valuation of ENB-PR-A can be described as very reasonable.
74.30% of the companies in the same industry are more expensive than ENB-PR-A, based on the Price/Earnings ratio.
ENB-PR-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
With a Price/Forward Earnings ratio of 7.57, the valuation of ENB-PR-A can be described as very cheap.
Based on the Price/Forward Earnings ratio, ENB-PR-A is valued a bit cheaper than the industry average as 71.03% of the companies are valued more expensively.
ENB-PR-A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.2 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENB-PR-A.
73.83% of the companies in the same industry are more expensive than ENB-PR-A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 9.98 |
4.3 Compensation for Growth
ENB-PR-A's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ENB-PR-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)7.4
EPS Next 2Y7.73%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.85%, ENB-PR-A is a good candidate for dividend investing.
ENB-PR-A's Dividend Yield is rather good when compared to the industry average which is at 7.64. ENB-PR-A pays more dividend than 88.78% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, ENB-PR-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
5.2 History
The dividend of ENB-PR-A has a limited annual growth rate of 4.10%.
ENB-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
ENB-PR-A 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 Years0
Div Non Decr Years25
5.3 Sustainability
ENB-PR-A pays out 163.51% of its income as dividend. This is not a sustainable payout ratio.
ENB-PR-A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP163.51%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
ENBRIDGE INC - ENBCN 5 1/2 PERP
TSX:ENB-PR-A (5/2/2025, 7:00:00 PM)
22.95
+0.05 (+0.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap50.03B
Analysts72.14
Price Target24.12 (5.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
Yearly Dividend3.84
Dividend Growth(5Y)4.1%
DP163.51%
Div Incr Years0
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.32%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.67%
EPS beat(4)1
Avg EPS beat(4)-0.15%
Min EPS beat(4)-9.75%
Max EPS beat(4)11.79%
EPS beat(8)2
Avg EPS beat(8)-0.91%
EPS beat(12)3
Avg EPS beat(12)-2.18%
EPS beat(16)6
Avg EPS beat(16)-0.23%
Revenue beat(2)2
Avg Revenue beat(2)113.16%
Min Revenue beat(2)108.58%
Max Revenue beat(2)117.73%
Revenue beat(4)4
Avg Revenue beat(4)82.85%
Min Revenue beat(4)8.67%
Max Revenue beat(4)117.73%
Revenue beat(8)4
Avg Revenue beat(8)33.02%
Revenue beat(12)6
Avg Revenue beat(12)22.01%
Revenue beat(16)9
Avg Revenue beat(16)19.55%
PT rev (1m)-2.77%
PT rev (3m)5.11%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)1.12%
EPS NY rev (1m)-1.38%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)22.25%
Revenue NQ rev (3m)79.16%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)46.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.2 | ||
| Fwd PE | 7.57 | ||
| P/S | 0.94 | ||
| P/FCF | 8.82 | ||
| P/OCF | 3.97 | ||
| P/B | 0.76 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)2.8
EY12.2%
EPS(NY)3.03
Fwd EY13.22%
FCF(TTM)2.6
FCFY11.33%
OCF(TTM)5.78
OCFY25.18%
SpS24.53
BVpS30.23
TBVpS11.34
PEG (NY)0.98
PEG (5Y)7.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 7.67% | ||
| ROCE | 5.02% | ||
| ROIC | 3.85% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 4.94% | ||
| OM | 18.31% | ||
| PM (TTM) | 9.45% | ||
| GM | 45.63% | ||
| FCFM | 10.6% |
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-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Debt/EBITDA | 6.28 | ||
| Cap/Depr | 134.12% | ||
| Cap/Sales | 12.96% | ||
| Interest Coverage | 2.37 | ||
| Cash Conversion | 84.22% | ||
| Profit Quality | 112.21% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.4 |
F-Score4
WACC7.42%
ROIC/WACC0.52
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)0.36%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%17.19%
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y8.26%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%43.54%
Revenue Next Year14.85%
Revenue Next 2Y9.07%
Revenue Next 3Y7.26%
Revenue Next 5Y0.28%
EBIT growth 1Y10%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year75.24%
EBIT Next 3Y24.16%
EBIT Next 5Y16.03%
FCF growth 1Y-39.2%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y-11.27%
OCF growth 3Y10.83%
OCF growth 5Y6.04%