ENBRIDGE INC - ENBCN 5.538 PERP (ENB-PR-F.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENB-PR-F - CA29250N8659
22.12 CAD
+0.13 (+0.59%)
ENB-PR-F gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. While ENB-PR-F has a great profitability rating, there are quite some concerns on its financial health. ENB-PR-F scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ENB-PR-F also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ENB-PR-F was profitable.
- In the past year ENB-PR-F had a positive cash flow from operations.
- ENB-PR-F had positive earnings in each of the past 5 years.
- ENB-PR-F had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.59%, ENB-PR-F is in the better half of the industry, outperforming 65.53% of the companies in the same industry.
- ENB-PR-F's Return On Equity of 8.61% is fine compared to the rest of the industry. ENB-PR-F outperforms 73.79% of its industry peers.
- With a decent Return On Invested Capital value of 4.12%, ENB-PR-F is doing good in the industry, outperforming 70.87% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ENB-PR-F is below the industry average of 6.62%.
- The 3 year average ROIC (3.99%) for ENB-PR-F is below the current ROIC(4.12%), indicating increased profibility in the last year.
| 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-PR-F has a better Profit Margin (8.74%) than 70.87% of its industry peers.
- ENB-PR-F's Profit Margin has declined in the last couple of years.
- ENB-PR-F's Operating Margin of 16.91% is fine compared to the rest of the industry. ENB-PR-F outperforms 72.33% of its industry peers.
- In the last couple of years the Operating Margin of ENB-PR-F has grown nicely.
- The Gross Margin of ENB-PR-F (41.11%) is better than 65.53% of its industry peers.
- In the last couple of years the Gross Margin of ENB-PR-F 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENB-PR-F is destroying value.
- The number of shares outstanding for ENB-PR-F has been increased compared to 1 year ago.
- Compared to 5 years ago, ENB-PR-F has more shares outstanding
- Compared to 1 year ago, ENB-PR-F has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.51, we must say that ENB-PR-F is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ENB-PR-F (0.51) is comparable to the rest of the industry.
- The Debt to FCF ratio of ENB-PR-F is 25.58, which is on the high side as it means it would take ENB-PR-F, 25.58 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 25.58, ENB-PR-F is in the better half of the industry, outperforming 68.45% of the companies in the same industry.
- ENB-PR-F has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.56, ENB-PR-F is doing worse than 62.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.51 |
ROIC/WACC0.58
WACC7.12%
2.3 Liquidity
- A Current Ratio of 0.80 indicates that ENB-PR-F may have some problems paying its short term obligations.
- The Current ratio of ENB-PR-F (0.80) is comparable to the rest of the industry.
- A Quick Ratio of 0.68 indicates that ENB-PR-F may have some problems paying its short term obligations.
- ENB-PR-F has a Quick ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- ENB-PR-F shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.43%.
- ENB-PR-F shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
- ENB-PR-F shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.29%.
- 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
- The Earnings Per Share is expected to grow by 7.06% on average over the next years.
- The Revenue is expected to grow by 7.24% on average over the next years.
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
- ENB-PR-F is valuated cheaply with a Price/Earnings ratio of 7.65.
- 89.32% of the companies in the same industry are more expensive than ENB-PR-F, based on the Price/Earnings ratio.
- ENB-PR-F is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 7.11, which indicates a rather cheap valuation of ENB-PR-F.
- ENB-PR-F's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENB-PR-F is cheaper than 89.81% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ENB-PR-F to the average of the S&P500 Index (25.98), we can say ENB-PR-F is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENB-PR-F is valued a bit cheaper than 68.45% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENB-PR-F indicates a rather cheap valuation: ENB-PR-F is cheaper than 81.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
- ENB-PR-F's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ENB-PR-F may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)6.91
EPS Next 2Y5.39%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
- ENB-PR-F has a Yearly Dividend Yield of 5.93%, which is a nice return.
- ENB-PR-F's Dividend Yield is rather good when compared to the industry average which is at 3.29. ENB-PR-F pays more dividend than 84.47% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ENB-PR-F pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
5.2 History
- The dividend of ENB-PR-F has a limited annual growth rate of 4.10%.
- ENB-PR-F has paid a dividend for at least 10 years, which is a reliable track record.
- ENB-PR-F has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.1%
Div Incr Years2
Div Non Decr Years12
5.3 Sustainability
- ENB-PR-F pays out 152.61% of its income as dividend. This is not a sustainable payout ratio.
- ENB-PR-F'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 5.538 PERP / ENB-PR-F.CA FAQ
Can you provide the ChartMill fundamental rating for ENBRIDGE INC - ENBCN 5.538 PERP?
ChartMill assigns a fundamental rating of 5 / 10 to ENB-PR-F.CA.
What is the valuation status for ENB-PR-F stock?
ChartMill assigns a valuation rating of 8 / 10 to ENBRIDGE INC - ENBCN 5.538 PERP (ENB-PR-F.CA). This can be considered as Undervalued.
How profitable is ENBRIDGE INC - ENBCN 5.538 PERP (ENB-PR-F.CA) stock?
ENBRIDGE INC - ENBCN 5.538 PERP (ENB-PR-F.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ENB-PR-F stock?
The Price/Earnings (PE) ratio for ENBRIDGE INC - ENBCN 5.538 PERP (ENB-PR-F.CA) is 7.65 and the Price/Book (PB) ratio is 0.74.
How sustainable is the dividend of ENBRIDGE INC - ENBCN 5.538 PERP (ENB-PR-F.CA) stock?
The dividend rating of ENBRIDGE INC - ENBCN 5.538 PERP (ENB-PR-F.CA) is 8 / 10 and the dividend payout ratio is 152.61%.