ENBRIDGE INC (ENB)
CA29250N1050 - Common Stock
Overall ENB gets a fundamental rating of 3 out of 10. We evaluated ENB against 213 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 valued expensive and it does not seem to be growing. Finally ENB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ENB was profitable.
ENB had a positive operating cash flow in the past year.
Each year in the past 5 years ENB has been profitable.
ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENB has a worse Return On Assets (3.24%) than 69.81% of its industry peers.
ENB has a Return On Equity of 9.50%. This is in the lower half of the industry: ENB underperforms 64.62% of its industry peers.
The Return On Invested Capital of ENB (3.86%) is worse than 76.89% of its industry peers.
ENB had an Average Return On Invested Capital over the past 3 years of 3.72%. This is significantly below the industry average of 46.07%.
The last Return On Invested Capital (3.86%) for ENB is above the 3 year average (3.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 9.5% | ||
| ROIC | 3.86% |
ROA(3y)2.71%
ROA(5y)2.65%
ROE(3y)7.8%
ROE(5y)7.26%
ROIC(3y)3.72%
ROIC(5y)3.76%
1.3 Margins
The Profit Margin of ENB (13.38%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ENB has grown nicely.
ENB's Operating Margin of 20.40% is in line compared to the rest of the industry. ENB outperforms 43.40% of its industry peers.
In the last couple of years the Operating Margin of ENB has grown nicely.
ENB has a Gross Margin (50.84%) which is comparable to the rest of the industry.
ENB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.4% | ||
| PM (TTM) | 13.38% | ||
| GM | 50.84% |
OM growth 3Y0.93%
OM growth 5Y6.39%
PM growth 3Y20.57%
PM growth 5Y19.79%
GM growth 3Y2.95%
GM growth 5Y6.79%
2. Health
2.1 Basic Checks
ENB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ENB has less shares outstanding
ENB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ENB has about the same debt to assets ratio.
2.2 Solvency
ENB has an Altman-Z score of 0.75. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.75, ENB is not doing good in the industry: 63.68% of the companies in the same industry are doing better.
ENB has a debt to FCF ratio of 8.71. This is a slightly negative value and a sign of low solvency as ENB would need 8.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.71, ENB perfoms like the industry average, outperforming 42.92% of the companies in the same industry.
A Debt/Equity ratio of 1.22 is on the high side and indicates that ENB has dependencies on debt financing.
With a Debt to Equity ratio value of 1.22, ENB is not doing good in the industry: 75.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 8.71 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.67
WACC5.77%
2.3 Liquidity
ENB has a Current Ratio of 0.83. 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 Current ratio of 0.83. This is in the lower half of the industry: ENB underperforms 71.23% of its industry peers.
A Quick Ratio of 0.74 indicates that ENB may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, ENB is not doing good in the industry: 68.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
ENB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.71%.
Measured over the past 5 years, ENB shows a small growth in Earnings Per Share. The EPS has been growing by 0.88% on average per year.
Looking at the last year, ENB shows a very negative growth in Revenue. The Revenue has decreased by -18.12% in the last year.
The Revenue has been decreasing by -1.21% on average over the past years.
EPS 1Y (TTM)-0.71%
EPS 3Y4.71%
EPS 5Y0.88%
EPS growth Q2Q1.59%
Revenue 1Y (TTM)-18.12%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Revenue growth Q2Q-15.84%
3.2 Future
Based on estimates for the next years, ENB will show a small growth in Earnings Per Share. The EPS will grow by 4.92% on average per year.
ENB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.47% yearly.
EPS Next Y2.31%
EPS Next 2Y3.64%
EPS Next 3Y5.79%
EPS Next 5Y4.92%
Revenue Next Year2.61%
Revenue Next 2Y3.58%
Revenue Next 3Y3.41%
Revenue Next 5Y6.47%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.78, ENB is valued correctly.
ENB's Price/Earnings ratio is a bit more expensive when compared to the industry. ENB is more expensive than 66.98% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.80, ENB is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.40 indicates a correct valuation of ENB.
ENB's Price/Forward Earnings is on the same level as the industry average.
ENB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than 73.58% of the companies in the same industry.
ENB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ENB is cheaper than 62.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 12.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.26
PEG (5Y)19
EPS Next 2Y3.64%
EPS Next 3Y5.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.74%, ENB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.80, ENB pays a better dividend. On top of this ENB pays more dividend than 82.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.74% |
5.2 History
On average, the dividend of ENB grows each year by 10.75%, which is quite nice.
ENB has been paying a dividend for at least 10 years, so it has 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 Years11
Div Non Decr Years11
5.3 Sustainability
130.64% of the earnings are spent on dividend by ENB. This is not a sustainable payout ratio.
The dividend of ENB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP130.64%
EPS Next 2Y3.64%
EPS Next 3Y5.79%
ENBRIDGE INC
NYSE:ENB (4/18/2024, 7:04:00 PM)
After market: 33.9159 +0.02 (+0.05%)33.9
+0.57 (+1.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap72.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 16.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)7.26
PEG (5Y)19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 9.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.4% | ||
| PM (TTM) | 13.38% | ||
| GM | 50.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.71%
EPS 3Y4.71%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.12%
Revenue growth 3Y3.75%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y