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ENBRIDGE INC - ENBCN 6.314 PERP (ENB-PR-T.CA) Stock Fundamental Analysis

TSX:ENB-PR-T - Toronto Stock Exchange - CA29250N7339 - Currency: CAD

21.41  -0.05 (-0.23%)

Fundamental Rating

4

Taking everything into account, ENB-PR-T scores 4 out of 10 in our fundamental rating. ENB-PR-T was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While ENB-PR-T is still in line with the averages on profitability rating, there are concerns on its financial health. ENB-PR-T is valued correctly, but it does not seem to be growing. ENB-PR-T also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

ENB-PR-T had positive earnings in the past year.
ENB-PR-T had a positive operating cash flow in the past year.
Each year in the past 5 years ENB-PR-T has been profitable.
ENB-PR-T had a positive operating cash flow in each of the past 5 years.
ENB-PR-T.CA Yearly Net Income VS EBIT VS OCF VS FCFENB-PR-T.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-T perfoms like the industry average, outperforming 54.23% of the companies in the same industry.
ENB-PR-T has a better Return On Equity (9.55%) than 62.69% of its industry peers.
ENB-PR-T has a Return On Invested Capital (3.61%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ENB-PR-T 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-T.CA Yearly ROA, ROE, ROICENB-PR-T.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

Looking at the Profit Margin, with a value of 12.95%, ENB-PR-T is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
ENB-PR-T's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.72%, ENB-PR-T is in the better half of the industry, outperforming 63.18% of the companies in the same industry.
In the last couple of years the Operating Margin of ENB-PR-T has grown nicely.
ENB-PR-T has a Gross Margin of 48.94%. This is in the better half of the industry: ENB-PR-T outperforms 62.19% of its industry peers.
ENB-PR-T's Gross Margin has improved in the last couple of years.
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-T.CA Yearly Profit, Operating, Gross MarginsENB-PR-T.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

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENB-PR-T is destroying value.
The number of shares outstanding for ENB-PR-T has been reduced compared to 1 year ago.
ENB-PR-T has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ENB-PR-T has remained at the same level compared to a year ago.
ENB-PR-T.CA Yearly Shares OutstandingENB-PR-T.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
ENB-PR-T.CA Yearly Total Debt VS Total AssetsENB-PR-T.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

ENB-PR-T has an Altman-Z score of 0.44. This is a bad value and indicates that ENB-PR-T is not financially healthy and even has some risk of bankruptcy.
ENB-PR-T has a Altman-Z score of 0.44. This is comparable to the rest of the industry: ENB-PR-T outperforms 43.78% of its industry peers.
ENB-PR-T has a debt to FCF ratio of 13.61. This is a negative value and a sign of low solvency as ENB-PR-T would need 13.61 years to pay back of all of its debts.
ENB-PR-T's Debt to FCF ratio of 13.61 is fine compared to the rest of the industry. ENB-PR-T outperforms 60.70% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that ENB-PR-T has dependencies on debt financing.
With a Debt to Equity ratio value of 1.34, ENB-PR-T is not doing good in the industry: 76.62% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 13.61
Altman-Z 0.44
ROIC/WACC0.58
WACC6.2%
ENB-PR-T.CA Yearly LT Debt VS Equity VS FCFENB-PR-T.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

A Current Ratio of 0.62 indicates that ENB-PR-T may have some problems paying its short term obligations.
ENB-PR-T has a worse Current ratio (0.62) than 74.13% of its industry peers.
ENB-PR-T has a Quick Ratio of 0.62. This is a bad value and indicates that ENB-PR-T is not financially healthy enough and could expect problems in meeting its short term obligations.
ENB-PR-T has a worse Quick ratio (0.54) than 68.66% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.54
ENB-PR-T.CA Yearly Current Assets VS Current LiabilitesENB-PR-T.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-T have decreased by -3.24% in the last year.
Measured over the past 5 years, ENB-PR-T 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.
ENB-PR-T shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.21% yearly.
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-T 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-T 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.
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.
ENB-PR-T.CA Yearly Revenue VS EstimatesENB-PR-T.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-T.CA Yearly EPS VS EstimatesENB-PR-T.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

Based on the Price/Earnings ratio of 7.96, the valuation of ENB-PR-T can be described as very cheap.
Based on the Price/Earnings ratio, ENB-PR-T is valued a bit cheaper than 73.13% of the companies in the same industry.
ENB-PR-T's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
A Price/Forward Earnings ratio of 6.97 indicates a rather cheap valuation of ENB-PR-T.
ENB-PR-T's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ENB-PR-T is cheaper than 72.14% of the companies in the same industry.
ENB-PR-T is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.77, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.96
Fwd PE 6.97
ENB-PR-T.CA Price Earnings VS Forward Price EarningsENB-PR-T.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

ENB-PR-T's Enterprise Value to EBITDA is on the same level as the industry average.
79.10% of the companies in the same industry are more expensive than ENB-PR-T, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.66
EV/EBITDA 9.59
ENB-PR-T.CA Per share dataENB-PR-T.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

ENB-PR-T has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.01
EPS Next 2Y4.93%
EPS Next 3Y4.79%

7

5. Dividend

5.1 Amount

ENB-PR-T has a Yearly Dividend Yield of 5.85%, which is a nice return.
ENB-PR-T's Dividend Yield is rather good when compared to the industry average which is at 6.59. ENB-PR-T pays more dividend than 86.07% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, ENB-PR-T pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.85%

5.2 History

On average, the dividend of ENB-PR-T grows each year by 10.75%, which is quite nice.
ENB-PR-T has been paying a dividend for at least 10 years, so it has a reliable track record.
ENB-PR-T 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 Years11
ENB-PR-T.CA Yearly Dividends per shareENB-PR-T.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

ENB-PR-T pays out 129.64% of its income as dividend. This is not a sustainable payout ratio.
ENB-PR-T's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP129.64%
EPS Next 2Y4.93%
EPS Next 3Y4.79%
ENB-PR-T.CA Yearly Income VS Free CF VS DividendENB-PR-T.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-T.CA Dividend Payout.ENB-PR-T.CA Dividend Payout, showing the Payout Ratio.ENB-PR-T.CA Dividend Payout.PayoutRetained Earnings

ENBRIDGE INC - ENBCN 6.314 PERP

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

21.41

-0.05 (-0.23%)

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 Cap46.64B
Analysts71.54
Price Target21.43 (0.09%)
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 Years11
Ex-Date02-14 2025-02-14 (0.39463)
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)-3.39%
PT rev (3m)4.62%
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 7.96
Fwd PE 6.97
P/S 0.96
P/FCF 6.66
P/OCF 3.66
P/B 0.71
P/tB 1.76
EV/EBITDA 9.59
EPS(TTM)2.69
EY12.56%
EPS(NY)3.07
Fwd EY14.35%
FCF(TTM)3.21
FCFY15.01%
OCF(TTM)5.85
OCFY27.34%
SpS22.29
BVpS30.2
TBVpS12.18
PEG (NY)N/A
PEG (5Y)9.01
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 0.44
F-Score5
WACC6.2%
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%