ENBRIDGE INC (ENB.CA) Stock Fundamental Analysis
TSX:ENB - Toronto Stock Exchange - CA29250N1050 - Common Stock - Currency: CAD
Taking everything into account, ENB scores 4 out of 10 in our fundamental rating. ENB was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. ENB has a medium profitability rating, but doesn't score so well on its financial health evaluation. ENB is valied quite expensively at the moment, while it does show a decent growth rate. Finally ENB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ENB had positive earnings in the past year.
ENB had a positive operating cash flow in the past year.
In the past 5 years ENB has always been profitable.
In the past 5 years ENB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.68%, ENB is in line with its industry, outperforming 57.89% of the companies in the same industry.
ENB's Return On Equity of 8.64% is fine compared to the rest of the industry. ENB outperforms 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.
The Average Return On Invested Capital over the past 3 years for ENB is below the industry average of 7.47%.
The 3 year average ROIC (3.99%) for ENB is below the current ROIC(4.07%), indicating increased profibility in the last year.
| 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's Operating Margin of 17.53% is fine compared to the rest of the industry. ENB outperforms 61.24% of its industry peers.
In the last couple of years the Operating Margin of ENB has grown nicely.
ENB has a Gross Margin (42.37%) which is in line with its industry peers.
ENB's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENB is destroying value.
ENB has more shares outstanding than it did 1 year ago.
ENB has more shares outstanding than it did 5 years ago.
ENB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that ENB is in the distress zone and has some risk of bankruptcy.
ENB has a Altman-Z score (0.85) which is in line with its industry peers.
The Debt to FCF ratio of ENB is 20.56, which is on the high side as it means it would take ENB, 20.56 years of fcf income to pay off all of its debts.
ENB has a Debt to FCF ratio (20.56) which is in line with its industry peers.
A Debt/Equity ratio of 1.44 is on the high side and indicates that ENB has dependencies on debt financing.
With a Debt to Equity ratio value of 1.44, ENB is not doing good in the industry: 74.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.53
WACC7.7%
2.3 Liquidity
ENB has a Current 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's Current ratio of 0.73 is in line compared to the rest of the industry. ENB outperforms 45.93% of its industry peers.
A Quick Ratio of 0.66 indicates that ENB may have some problems paying its short term obligations.
ENB's Quick ratio of 0.66 is in line compared 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
The Earnings Per Share has been growing slightly by 1.75% over the past year.
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%.
The Revenue has been growing slightly by 1.32% on average over the past years.
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
ENB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.20% yearly.
ENB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.41% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.55, ENB is valued on the expensive side.
ENB's Price/Earnings ratio is in line with the industry average.
ENB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.29, ENB is valued on the expensive side.
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 (22.39), we can say ENB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 19.29 |
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 | 27.25 | ||
| EV/EBITDA | 14.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ENB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)19.46
EPS Next 2Y7.73%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 5.89%, which is a nice return.
ENB's Dividend Yield is rather good when compared to the industry average which is at 6.54. ENB pays more dividend than 91.39% of the companies in the same industry.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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
ENB pays out 142.15% of its income as dividend. This is not a sustainable payout ratio.
ENB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP142.15%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
TSX:ENB (6/9/2025, 7:00:00 PM)
62.7
-1 (-1.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap136.69B
Analysts72.14
Price Target66.46 (6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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)0.85%
PT rev (3m)2.82%
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)31.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 19.29 | ||
| P/S | 2.24 | ||
| P/FCF | 27.25 | ||
| P/OCF | 10.93 | ||
| P/B | 2 | ||
| P/tB | 5.04 | ||
| EV/EBITDA | 14.88 |
EPS(TTM)2.91
EY4.64%
EPS(NY)3.25
Fwd EY5.18%
FCF(TTM)2.3
FCFY3.67%
OCF(TTM)5.73
OCFY9.15%
SpS27.95
BVpS31.31
TBVpS12.45
PEG (NY)2.59
PEG (5Y)19.46
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 | 0.85 |
F-Score5
WACC7.7%
ROIC/WACC0.53
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%