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ENBRIDGE INC - ENBCN 6.696 PERP (ENB-PR-N.CA) Stock Fundamental Analysis

TSX:ENB-PR-N - Toronto Stock Exchange - CA29250N7743 - Currency: CAD

23.07  +0.06 (+0.26%)

Fundamental Rating

4

ENB-PR-N gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ENB-PR-N while its profitability can be described as average. ENB-PR-N is valued correctly, but it does not seem to be growing. Finally ENB-PR-N also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year ENB-PR-N was profitable.
ENB-PR-N had a positive operating cash flow in the past year.
Each year in the past 5 years ENB-PR-N has been profitable.
ENB-PR-N had a positive operating cash flow in each of the past 5 years.
ENB-PR-N.CA Yearly Net Income VS EBIT VS OCF VS FCFENB-PR-N.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B

1.2 Ratios

With a Return On Assets value of 3.05%, ENB-PR-N perfoms like the industry average, outperforming 53.23% of the companies in the same industry.
ENB-PR-N has a Return On Equity of 9.55%. This is in the better half of the industry: ENB-PR-N outperforms 61.69% of its industry peers.
With a Return On Invested Capital value of 3.61%, ENB-PR-N perfoms like the industry average, outperforming 51.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ENB-PR-N is below the industry average of 7.73%.
Industry RankSector Rank
ROA 3.05%
ROE 9.55%
ROIC 3.61%
ROA(3y)2.71%
ROA(5y)2.65%
ROE(3y)7.8%
ROE(5y)7.26%
ROIC(3y)3.72%
ROIC(5y)3.76%
ENB-PR-N.CA Yearly ROA, ROE, ROICENB-PR-N.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2 4 6 8

1.3 Margins

ENB-PR-N has a better Profit Margin (12.95%) than 63.18% of its industry peers.
ENB-PR-N's Profit Margin has improved in the last couple of years.
ENB-PR-N has a Operating Margin of 19.72%. This is in the better half of the industry: ENB-PR-N outperforms 62.19% of its industry peers.
ENB-PR-N's Operating Margin has improved in the last couple of years.
ENB-PR-N has a better Gross Margin (48.94%) than 61.19% of its industry peers.
In the last couple of years the Gross Margin of ENB-PR-N has grown nicely.
Industry RankSector Rank
OM 19.72%
PM (TTM) 12.95%
GM 48.94%
OM growth 3Y0.93%
OM growth 5Y6.39%
PM growth 3Y20.57%
PM growth 5Y19.79%
GM growth 3Y2.95%
GM growth 5Y6.79%
ENB-PR-N.CA Yearly Profit, Operating, Gross MarginsENB-PR-N.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40 50

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENB-PR-N is destroying value.
ENB-PR-N has less shares outstanding than it did 1 year ago.
ENB-PR-N has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ENB-PR-N has about the same debt to assets ratio.
ENB-PR-N.CA Yearly Shares OutstandingENB-PR-N.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
ENB-PR-N.CA Yearly Total Debt VS Total AssetsENB-PR-N.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B 150B

2.2 Solvency

Based on the Altman-Z score of 0.45, we must say that ENB-PR-N is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ENB-PR-N (0.45) is comparable to the rest of the industry.
The Debt to FCF ratio of ENB-PR-N is 13.61, which is on the high side as it means it would take ENB-PR-N, 13.61 years of fcf income to pay off all of its debts.
ENB-PR-N has a Debt to FCF ratio (13.61) which is in line with its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that ENB-PR-N has dependencies on debt financing.
The Debt to Equity ratio of ENB-PR-N (1.34) is worse than 77.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 13.61
Altman-Z 0.45
ROIC/WACC0.58
WACC6.22%
ENB-PR-N.CA Yearly LT Debt VS Equity VS FCFENB-PR-N.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20B 40B 60B

2.3 Liquidity

ENB-PR-N has a Current Ratio of 0.62. This is a bad value and indicates that ENB-PR-N is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.62, ENB-PR-N is doing worse than 75.12% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that ENB-PR-N may have some problems paying its short term obligations.
ENB-PR-N has a Quick ratio of 0.54. This is in the lower half of the industry: ENB-PR-N underperforms 69.65% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.54
ENB-PR-N.CA Yearly Current Assets VS Current LiabilitesENB-PR-N.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

3

3. Growth

3.1 Past

The earnings per share for ENB-PR-N have decreased by -3.24% in the last year.
Measured over the past 5 years, ENB-PR-N shows a small growth in Earnings Per Share. The EPS has been growing by 0.88% on average per year.
The Revenue has been growing slightly by 6.07% in the past year.
Measured over the past years, ENB-PR-N shows a decrease in Revenue. The Revenue has been decreasing by -1.21% on average per year.
EPS 1Y (TTM)-3.24%
EPS 3Y4.71%
EPS 5Y0.88%
EPS Q2Q%-11.29%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Sales Q2Q%51.18%

3.2 Future

ENB-PR-N is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.80% yearly.
ENB-PR-N is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.98% yearly.
EPS Next Y-0.45%
EPS Next 2Y4.93%
EPS Next 3Y4.79%
EPS Next 5Y5.8%
Revenue Next Year3.29%
Revenue Next 2Y-9.96%
Revenue Next 3Y-4.42%
Revenue Next 5Y1.98%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ENB-PR-N.CA Yearly Revenue VS EstimatesENB-PR-N.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
ENB-PR-N.CA Yearly EPS VS EstimatesENB-PR-N.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

6

4. Valuation

4.1 Price/Earnings Ratio

ENB-PR-N is valuated reasonably with a Price/Earnings ratio of 8.58.
Compared to the rest of the industry, the Price/Earnings ratio of ENB-PR-N indicates a somewhat cheap valuation: ENB-PR-N is cheaper than 71.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. ENB-PR-N is valued rather cheaply when compared to this.
ENB-PR-N is valuated cheaply with a Price/Forward Earnings ratio of 7.51.
Based on the Price/Forward Earnings ratio, ENB-PR-N is valued a bit cheaper than 68.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ENB-PR-N to the average of the S&P500 Index (94.77), we can say ENB-PR-N is valued rather cheaply.
Industry RankSector Rank
PE 8.58
Fwd PE 7.51
ENB-PR-N.CA Price Earnings VS Forward Price EarningsENB-PR-N.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

ENB-PR-N's Enterprise Value to EBITDA is on the same level as the industry average.
ENB-PR-N's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ENB-PR-N is cheaper than 77.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.18
EV/EBITDA 9.82
ENB-PR-N.CA Per share dataENB-PR-N.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

ENB-PR-N has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.71
EPS Next 2Y4.93%
EPS Next 3Y4.79%

7

5. Dividend

5.1 Amount

ENB-PR-N has a Yearly Dividend Yield of 5.85%, which is a nice return.
ENB-PR-N's Dividend Yield is rather good when compared to the industry average which is at 6.59. ENB-PR-N pays more dividend than 87.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, ENB-PR-N pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.85%

5.2 History

The dividend of ENB-PR-N is nicely growing with an annual growth rate of 10.75%!
ENB-PR-N has been paying a dividend for at least 10 years, so it has a reliable track record.
ENB-PR-N has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.75%
Div Incr Years1
Div Non Decr Years12
ENB-PR-N.CA Yearly Dividends per shareENB-PR-N.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

129.64% of the earnings are spent on dividend by ENB-PR-N. This is not a sustainable payout ratio.
The dividend of ENB-PR-N is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP129.64%
EPS Next 2Y4.93%
EPS Next 3Y4.79%
ENB-PR-N.CA Yearly Income VS Free CF VS DividendENB-PR-N.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B 8B
ENB-PR-N.CA Dividend Payout.ENB-PR-N.CA Dividend Payout, showing the Payout Ratio.ENB-PR-N.CA Dividend Payout.PayoutRetained Earnings

ENBRIDGE INC - ENBCN 6.696 PERP

TSX:ENB-PR-N (2/7/2025, 7:00:00 PM)

23.07

+0.06 (+0.26%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)02-14 2025-02-14/amc
Inst Owners54.84%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap50.25B
Analysts71.54
Price Target22.81 (-1.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.85%
Yearly Dividend3.45
Dividend Growth(5Y)10.75%
DP129.64%
Div Incr Years1
Div Non Decr Years12
Ex-Date02-14 2025-02-14 (0.4185)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.86%
Min EPS beat(2)-9.75%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-1.75%
Min EPS beat(4)-9.75%
Max EPS beat(4)11.79%
EPS beat(8)2
Avg EPS beat(8)-2.66%
EPS beat(12)3
Avg EPS beat(12)-3.06%
EPS beat(16)6
Avg EPS beat(16)-0.74%
Revenue beat(2)2
Avg Revenue beat(2)107.08%
Min Revenue beat(2)96.43%
Max Revenue beat(2)117.73%
Revenue beat(4)3
Avg Revenue beat(4)51.72%
Min Revenue beat(4)-15.94%
Max Revenue beat(4)117.73%
Revenue beat(8)3
Avg Revenue beat(8)18.94%
Revenue beat(12)6
Avg Revenue beat(12)13.79%
Revenue beat(16)8
Avg Revenue beat(16)11.98%
PT rev (1m)-5.12%
PT rev (3m)4.96%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)-40.45%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)20.99%
Valuation
Industry RankSector Rank
PE 8.58
Fwd PE 7.51
P/S 1.03
P/FCF 7.18
P/OCF 3.94
P/B 0.76
P/tB 1.89
EV/EBITDA 9.82
EPS(TTM)2.69
EY11.66%
EPS(NY)3.07
Fwd EY13.32%
FCF(TTM)3.21
FCFY13.93%
OCF(TTM)5.85
OCFY25.37%
SpS22.29
BVpS30.2
TBVpS12.18
PEG (NY)N/A
PEG (5Y)9.71
Profitability
Industry RankSector Rank
ROA 3.05%
ROE 9.55%
ROCE 5.13%
ROIC 3.61%
ROICexc 3.65%
ROICexgc 4.63%
OM 19.72%
PM (TTM) 12.95%
GM 48.94%
FCFM 14.42%
ROA(3y)2.71%
ROA(5y)2.65%
ROE(3y)7.8%
ROE(5y)7.26%
ROIC(3y)3.72%
ROIC(5y)3.76%
ROICexc(3y)3.78%
ROICexc(5y)3.8%
ROICexgc(3y)4.91%
ROICexgc(5y)4.96%
ROCE(3y)5.3%
ROCE(5y)5.35%
ROICexcg growth 3Y1.83%
ROICexcg growth 5Y4.01%
ROICexc growth 3Y2.35%
ROICexc growth 5Y4.46%
OM growth 3Y0.93%
OM growth 5Y6.39%
PM growth 3Y20.57%
PM growth 5Y19.79%
GM growth 3Y2.95%
GM growth 5Y6.79%
F-Score5
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 13.61
Debt/EBITDA 6.08
Cap/Depr 116.17%
Cap/Sales 11.84%
Interest Coverage 250
Cash Conversion 87.77%
Profit Quality 111.37%
Current Ratio 0.62
Quick Ratio 0.54
Altman-Z 0.45
F-Score5
WACC6.22%
ROIC/WACC0.58
Cap/Depr(3y)142.49%
Cap/Depr(5y)149.35%
Cap/Sales(3y)12.47%
Cap/Sales(5y)12.63%
Profit Quality(3y)142.42%
Profit Quality(5y)127.27%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.24%
EPS 3Y4.71%
EPS 5Y0.88%
EPS Q2Q%-11.29%
EPS Next Y-0.45%
EPS Next 2Y4.93%
EPS Next 3Y4.79%
EPS Next 5Y5.8%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Sales Q2Q%51.18%
Revenue Next Year3.29%
Revenue Next 2Y-9.96%
Revenue Next 3Y-4.42%
Revenue Next 5Y1.98%
EBIT growth 1Y6.29%
EBIT growth 3Y4.71%
EBIT growth 5Y5.11%
EBIT Next Year71%
EBIT Next 3Y23.69%
EBIT Next 5Y16.27%
FCF growth 1Y68.66%
FCF growth 3Y30.86%
FCF growth 5Y24.19%
OCF growth 1Y34.11%
OCF growth 3Y13.23%
OCF growth 5Y6.22%