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ENBRIDGE INC (ENB.CA) Stock Fundamental Analysis

TSX:ENB - Toronto Stock Exchange - CA29250N1050 - Common Stock - Currency: CAD

61.08  -3.54 (-5.48%)

Fundamental Rating

3

Overall ENB gets a fundamental rating of 3 out of 10. We evaluated ENB against 221 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ENB while its profitability can be described as average. ENB does not seem to be growing, but still is valued expensively. ENB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year ENB was profitable.
In the past year ENB had a positive cash flow from operations.
ENB had positive earnings in 4 of the past 5 years.
Of the past 5 years ENB 4 years had a positive operating cash flow.
ENB.CA Yearly Net Income VS EBIT VS OCF VS FCFENB.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 perfoms like the industry average, outperforming 52.66% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.55%, ENB is in line with its industry, outperforming 59.90% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.61%, ENB is in line with its industry, outperforming 50.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ENB 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.CA Yearly ROA, ROE, ROICENB.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 is in the better half of the industry, outperforming 61.84% of the companies in the same industry.
In the last couple of years the Profit Margin of ENB has grown nicely.
Looking at the Operating Margin, with a value of 19.72%, ENB is in the better half of the industry, outperforming 60.39% of the companies in the same industry.
ENB's Operating Margin has improved in the last couple of years.
ENB has a Gross Margin (48.94%) which is in line with its industry peers.
ENB'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.CA Yearly Profit, Operating, Gross MarginsENB.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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENB is destroying value.
ENB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ENB.CA Yearly Shares OutstandingENB.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
ENB.CA Yearly Total Debt VS Total AssetsENB.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 has an Altman-Z score of 0.81. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
ENB has a Altman-Z score (0.81) which is comparable to the rest of the industry.
The Debt to FCF ratio of ENB is 13.61, which is on the high side as it means it would take ENB, 13.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.61, ENB is in line with its industry, outperforming 58.45% of the companies in the same industry.
ENB has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.34, ENB is not doing good in the industry: 80.19% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 13.61
Altman-Z 0.81
ROIC/WACC0.53
WACC6.79%
ENB.CA Yearly LT Debt VS Equity VS FCFENB.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 may have some problems paying its short term obligations.
The Current ratio of ENB (0.62) is worse than 76.33% of its industry peers.
A Quick Ratio of 0.54 indicates that ENB may have some problems paying its short term obligations.
ENB has a Quick ratio of 0.54. This is in the lower half of the industry: ENB underperforms 71.01% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.54
ENB.CA Yearly Current Assets VS Current LiabilitesENB.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

ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.42%.
ENB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.12% yearly.
EPS 1Y (TTM)0.42%
EPS 3Y0.62%
EPS 5Y1.12%
EPS Q2Q%17.46%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%45.52%

3.2 Future

The Earnings Per Share is expected to grow by 8.10% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.66% on average over the next years.
EPS Next Y9.64%
EPS Next 2Y7.05%
EPS Next 3Y8.84%
EPS Next 5Y8.1%
Revenue Next Year-21.51%
Revenue Next 2Y-8.05%
Revenue Next 3Y-7.41%
Revenue Next 5Y1.66%

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.
ENB.CA Yearly Revenue VS EstimatesENB.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.CA Yearly EPS VS EstimatesENB.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

3

4. Valuation

4.1 Price/Earnings Ratio

ENB is valuated rather expensively with a Price/Earnings ratio of 21.81.
The rest of the industry has a similar Price/Earnings ratio as ENB.
ENB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.43.
ENB is valuated rather expensively with a Price/Forward Earnings ratio of 19.88.
The rest of the industry has a similar Price/Forward Earnings ratio as ENB.
When comparing the Price/Forward Earnings ratio of ENB to the average of the S&P500 Index (23.78), we can say ENB is valued inline with the index average.
Industry RankSector Rank
PE 21.81
Fwd PE 19.88
ENB.CA Price Earnings VS Forward Price EarningsENB.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

ENB's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ENB is valued a bit cheaper than the industry average as 62.32% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.01
EV/EBITDA 15.53
ENB.CA Per share dataENB.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ENB does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.26
PEG (5Y)19.48
EPS Next 2Y7.05%
EPS Next 3Y8.84%

7

5. Dividend

5.1 Amount

ENB has a Yearly Dividend Yield of 5.83%, which is a nice return.
Compared to an average industry Dividend Yield of 6.30, ENB pays a better dividend. On top of this ENB pays more dividend than 91.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, ENB pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.83%

5.2 History

On average, the dividend of ENB grows each year by 10.75%, which is quite nice.
ENB has paid a dividend for at least 10 years, which is a reliable track record.
ENB 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 Years24
Div Non Decr Years24
ENB.CA Yearly Dividends per shareENB.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

129.64% of the earnings are spent on dividend by ENB. This is not a sustainable payout ratio.
ENB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP129.64%
EPS Next 2Y7.05%
EPS Next 3Y8.84%
ENB.CA Yearly Income VS Free CF VS DividendENB.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.CA Dividend Payout.ENB.CA Dividend Payout, showing the Payout Ratio.ENB.CA Dividend Payout.PayoutRetained Earnings

ENBRIDGE INC

TSX:ENB (2/14/2025, 7:00:00 PM)

61.08

-3.54 (-5.48%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-14 2025-02-14/bmo
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners54.84%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap133.10B
Analysts71.11
Price Target63.51 (3.98%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.83%
Yearly Dividend3.45
Dividend Growth(5Y)10.75%
DP129.64%
Div Incr Years24
Div Non Decr Years24
Ex-Date02-14 2025-02-14 (0.9425)
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)0.93%
PT rev (3m)11.14%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)-1.28%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)-40.45%
Revenue NY rev (1m)0.88%
Revenue NY rev (3m)19.17%
Valuation
Industry RankSector Rank
PE 21.81
Fwd PE 19.88
P/S 2.74
P/FCF 19.01
P/OCF 10.44
P/B 2.02
P/tB 5.02
EV/EBITDA 15.53
EPS(TTM)2.8
EY4.58%
EPS(NY)3.07
Fwd EY5.03%
FCF(TTM)3.21
FCFY5.26%
OCF(TTM)5.85
OCFY9.58%
SpS22.28
BVpS30.19
TBVpS12.17
PEG (NY)2.26
PEG (5Y)19.48
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 0.81
F-Score5
WACC6.79%
ROIC/WACC0.53
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)0.42%
EPS 3Y0.62%
EPS 5Y1.12%
EPS Q2Q%17.46%
EPS Next Y9.64%
EPS Next 2Y7.05%
EPS Next 3Y8.84%
EPS Next 5Y8.1%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%45.52%
Revenue Next Year-21.51%
Revenue Next 2Y-8.05%
Revenue Next 3Y-7.41%
Revenue Next 5Y1.66%
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%