ENBRIDGE INC (ENB.CA) Stock Fundamental Analysis
TSX:ENB - Toronto Stock Exchange - CA29250N1050 - Common Stock - Currency: CAD
ENB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 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 is quite expensive at the moment. 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.
In the past year ENB had a positive cash flow from operations.
Each year in the past 5 years ENB has been profitable.
In the past 5 years ENB always reported a positive cash flow from operatings.
1.2 Ratios
ENB has a Return On Assets (2.68%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 8.64%, ENB is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
The Return On Invested Capital of ENB (4.07%) is better than 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 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
Looking at the Profit Margin, with a value of 9.67%, ENB is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
ENB's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 17.53%, ENB is doing good in the industry, outperforming 61.24% of the companies in the same industry.
In the last couple of years the Operating Margin of ENB has grown nicely.
With a Gross Margin value of 42.37%, ENB perfoms like the industry average, outperforming 55.02% of the companies in the same industry.
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.
Compared to 5 years ago, ENB has more shares outstanding
ENB has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 0.84, ENB is in line with its industry, outperforming 54.55% of the companies in the same industry.
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.
The Debt to FCF ratio of ENB (20.56) is comparable to the rest of the industry.
ENB has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
ENB has a worse Debt to Equity ratio (1.44) than 74.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.53
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.73 indicates that ENB may have some problems paying its short term obligations.
The Current ratio of ENB (0.73) is comparable to the rest of the industry.
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.
The Quick ratio of ENB (0.66) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing slightly by 1.11% on average over the past years.
Looking at the last year, ENB shows a very strong growth in Revenue. The Revenue has grown by 43.00%.
Measured over the past years, ENB shows a small growth in Revenue. The Revenue has been growing by 1.32% on average per year.
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.
The Revenue is expected to grow by 0.41% on average over the next years.
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
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.
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
A Price/Earnings ratio of 21.56 indicates a rather expensive valuation of ENB.
ENB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ENB to the average of the S&P500 Index (26.59), we can say ENB is valued inline with the index average.
A Price/Forward Earnings ratio of 19.30 indicates a rather expensive valuation of ENB.
The rest of the industry has a similar Price/Forward Earnings ratio as ENB.
ENB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 19.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENB.
ENB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.26 | ||
| EV/EBITDA | 14.74 |
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)19.47
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.
Compared to an average industry Dividend Yield of 6.54, ENB pays a better dividend. On top of this ENB pays more dividend than 91.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ENB pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
ENB has not decreased their dividend for at least 10 years, which is a reliable track record.
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 (6/10/2025, 7:00:00 PM)
62.73
-0.97 (-1.52%)
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 Cap136.75B
Analysts72.14
Price Target66.46 (5.95%)
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 | 21.56 | ||
| Fwd PE | 19.3 | ||
| P/S | 2.24 | ||
| P/FCF | 27.26 | ||
| P/OCF | 10.94 | ||
| P/B | 2 | ||
| P/tB | 5.04 | ||
| EV/EBITDA | 14.74 |
EPS(TTM)2.91
EY4.64%
EPS(NY)3.25
Fwd EY5.18%
FCF(TTM)2.3
FCFY3.67%
OCF(TTM)5.73
OCFY9.14%
SpS27.95
BVpS31.31
TBVpS12.45
PEG (NY)2.59
PEG (5Y)19.47
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
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%