ENBRIDGE INC (ENB.CA) Stock Fundamental Analysis
TSX:ENB - Toronto Stock Exchange - CA29250N1050 - Common Stock - Currency: CAD
Overall ENB gets a fundamental rating of 4 out of 10. We evaluated ENB against 209 industry peers in the Oil, Gas & Consumable Fuels industry. While ENB is still in line with the averages on profitability rating, there are concerns on its financial health. ENB is valied quite expensively at the moment, while it does show a decent growth rate. ENB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ENB had positive earnings in the past year.
In the past year ENB had a positive cash flow from operations.
ENB had positive earnings in each of the past 5 years.
Each year in the past 5 years ENB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ENB (2.68%) is comparable to the rest of the industry.
ENB has a better Return On Equity (8.64%) than 63.16% of its industry peers.
ENB has a Return On Invested Capital of 4.07%. This is in the better half of the industry: ENB outperforms 60.29% of its industry peers.
ENB had an Average Return On Invested Capital over the past 3 years of 3.99%. This is below the industry average of 7.47%.
The last Return On Invested Capital (4.07%) for ENB is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 8.64% | ||
| ROIC | 4.07% |
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 has a Profit Margin of 9.67%. This is in the better half of the industry: ENB outperforms 63.64% of its industry peers.
In the last couple of years the Profit Margin of ENB has declined.
ENB has a better Operating Margin (17.53%) than 61.24% of its industry peers.
In the last couple of years the Operating Margin of ENB has grown nicely.
Looking at the Gross Margin, with a value of 42.37%, ENB is in line with its industry, outperforming 55.02% of the companies in the same industry.
In the last couple of years the Gross Margin of ENB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.53% | ||
| PM (TTM) | 9.67% | ||
| GM | 42.37% |
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 is destroying value.
ENB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ENB has more shares outstanding
Compared to 1 year ago, ENB has a worse debt to assets ratio.
2.2 Solvency
ENB has an Altman-Z score of 0.84. 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 (0.84) which is in line with its industry peers.
ENB has a debt to FCF ratio of 20.56. This is a negative value and a sign of low solvency as ENB would need 20.56 years to pay back of all of its debts.
With a Debt to FCF ratio value of 20.56, ENB perfoms like the industry average, outperforming 56.94% of the companies in the same industry.
ENB has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.44, ENB is doing worse than 74.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.67
WACC6.05%
2.3 Liquidity
A Current Ratio of 0.73 indicates that ENB may have some problems paying its short term obligations.
ENB's Current ratio of 0.73 is in line compared to the rest of the industry. ENB outperforms 45.93% of its industry peers.
ENB has a Quick Ratio of 0.73. This is a bad value and indicates that ENB is not financially healthy enough and could expect problems in meeting its short term obligations.
ENB has a Quick ratio of 0.66. This is comparable to the rest of the industry: ENB outperforms 44.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.75%.
ENB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
Looking at the last year, ENB shows a very strong growth in Revenue. The Revenue has grown by 43.00%.
ENB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)1.75%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%11.96%
Revenue 1Y (TTM)43%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%67.62%
3.2 Future
The Earnings Per Share is expected to grow by 8.20% on average over the next years. This is quite good.
Based on estimates for the next years, ENB will show a small growth in Revenue. The Revenue will grow by 0.41% on average per year.
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y8.2%
Revenue Next Year14.97%
Revenue Next 2Y9.15%
Revenue Next 3Y7.36%
Revenue Next 5Y0.41%
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
A Price/Earnings ratio of 21.78 indicates a rather expensive valuation of ENB.
ENB's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. ENB is around the same levels.
With a Price/Forward Earnings ratio of 19.50, ENB is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENB is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.13. ENB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 19.5 |
4.2 Price Multiples
ENB's Enterprise Value to EBITDA is on the same level as the industry average.
ENB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.54 | ||
| EV/EBITDA | 14.83 |
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.
ENB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)19.67
EPS Next 2Y7.73%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.82%, ENB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.43, ENB pays a better dividend. On top of this ENB pays more dividend than 92.34% of the companies listed in the same industry.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.82% |
5.2 History
The dividend of ENB has a limited annual growth rate of 4.10%.
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)4.1%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
142.15% of the earnings are spent on dividend by ENB. This is not a sustainable payout ratio.
The dividend of ENB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP142.15%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
TSX:ENB (6/13/2025, 7:00:00 PM)
63.37
-0.32 (-0.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.95%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap138.15B
Analysts72.14
Price Target66.46 (4.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.82% |
Yearly Dividend3.84
Dividend Growth(5Y)4.1%
DP142.15%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.86%
Min EPS beat(2)-0.67%
Max EPS beat(2)6.39%
EPS beat(4)1
Avg EPS beat(4)-1.5%
Min EPS beat(4)-9.75%
Max EPS beat(4)6.39%
EPS beat(8)3
Avg EPS beat(8)-0.03%
EPS beat(12)4
Avg EPS beat(12)-1.51%
EPS beat(16)6
Avg EPS beat(16)-0.67%
Revenue beat(2)2
Avg Revenue beat(2)68.68%
Min Revenue beat(2)28.78%
Max Revenue beat(2)108.58%
Revenue beat(4)4
Avg Revenue beat(4)87.88%
Min Revenue beat(4)28.78%
Max Revenue beat(4)117.73%
Revenue beat(8)5
Avg Revenue beat(8)39.78%
Revenue beat(12)6
Avg Revenue beat(12)23.62%
Revenue beat(16)10
Avg Revenue beat(16)21.8%
PT rev (1m)0.39%
PT rev (3m)1.95%
EPS NQ rev (1m)-11.19%
EPS NQ rev (3m)-15.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)-13.19%
Revenue NQ rev (3m)58.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 19.5 | ||
| P/S | 2.27 | ||
| P/FCF | 27.54 | ||
| P/OCF | 11.05 | ||
| P/B | 2.02 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)2.91
EY4.59%
EPS(NY)3.25
Fwd EY5.13%
FCF(TTM)2.3
FCFY3.63%
OCF(TTM)5.73
OCFY9.05%
SpS27.95
BVpS31.31
TBVpS12.45
PEG (NY)2.62
PEG (5Y)19.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 8.64% | ||
| ROCE | 5.31% | ||
| ROIC | 4.07% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 5.17% | ||
| OM | 17.53% | ||
| PM (TTM) | 9.67% | ||
| GM | 42.37% | ||
| FCFM | 8.23% |
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-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Debt/EBITDA | 6.1 | ||
| Cap/Depr | 139.09% | ||
| Cap/Sales | 12.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.81% | ||
| Profit Quality | 85.09% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.84 |
F-Score5
WACC6.05%
ROIC/WACC0.67
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)1.75%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%11.96%
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y8.2%
Revenue 1Y (TTM)43%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%67.62%
Revenue Next Year14.97%
Revenue Next 2Y9.15%
Revenue Next 3Y7.36%
Revenue Next 5Y0.41%
EBIT growth 1Y17.72%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year75.25%
EBIT Next 3Y24.1%
EBIT Next 5Y16.19%
FCF growth 1Y-30.74%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y2.84%
OCF growth 3Y10.83%
OCF growth 5Y6.04%