ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - NYSE:ENB - CA29250N1050 - Common Stock
49.11 USD
+0.22 (+0.45%)
49.328 USD
+0.22 (+0.44%)
Taking everything into account, ENB scores 4 out of 10 in our fundamental rating. ENB was compared to 210 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. While showing a medium growth rate, ENB is valued expensive at the moment. ENB also has an excellent dividend rating.
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 each of the past 5 years.
In the past 5 years ENB always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.94%, ENB perfoms like the industry average, outperforming 49.05% of the companies in the same industry.
ENB's Return On Equity of 9.51% is in line compared to the rest of the industry. ENB outperforms 58.57% of its industry peers.
ENB's Return On Invested Capital of 4.33% is on the low side compared to the rest of the industry. ENB is outperformed by 60.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 21.76%.
The last Return On Invested Capital (4.33%) for ENB is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 9.51% | ||
| ROIC | 4.33% |
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 9.65%, ENB is in line with its industry, outperforming 54.76% of the companies in the same industry.
ENB's Profit Margin has declined in the last couple of years.
ENB's Operating Margin of 17.23% is in line compared to the rest of the industry. ENB outperforms 50.48% of its industry peers.
In the last couple of years the Operating Margin of ENB has grown nicely.
ENB's Gross Margin of 40.92% is in line compared to the rest of the industry. ENB outperforms 49.52% of its industry peers.
In the last couple of years the Gross Margin of ENB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.23% | ||
| PM (TTM) | 9.65% | ||
| GM | 40.92% |
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.
ENB has more shares outstanding than it did 5 years ago.
ENB has a worse debt/assets ratio than last year.
2.2 Solvency
ENB has an Altman-Z score of 0.94. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ENB (0.94) is comparable to the rest of the industry.
ENB has a debt to FCF ratio of 20.73. This is a negative value and a sign of low solvency as ENB would need 20.73 years to pay back of all of its debts.
ENB has a Debt to FCF ratio of 20.73. This is comparable to the rest of the industry: ENB outperforms 43.81% of its industry peers.
ENB has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.50, ENB is doing worse than 74.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 20.73 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.59
WACC7.37%
2.3 Liquidity
ENB has a Current Ratio of 0.75. 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 worse Current ratio (0.75) than 73.81% of its industry peers.
ENB has a Quick Ratio of 0.75. 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 (0.65) is worse than 72.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.97%.
ENB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.11% yearly.
The Revenue has grown by 48.17% in the past year. This is a very strong growth!
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)7.97%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%12.07%
Revenue 1Y (TTM)48.17%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%31.23%
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 7.56% on average per year.
Based on estimates for the next years, ENB will show a small growth in Revenue. The Revenue will grow by 6.39% on average per year.
EPS Next Y7.81%
EPS Next 2Y6.91%
EPS Next 3Y7.44%
EPS Next 5Y7.56%
Revenue Next Year27.86%
Revenue Next 2Y12.92%
Revenue Next 3Y11.27%
Revenue Next 5Y6.39%
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
A Price/Earnings ratio of 22.63 indicates a rather expensive valuation of ENB.
The rest of the industry has a similar Price/Earnings ratio as ENB.
The average S&P500 Price/Earnings ratio is at 27.20. ENB is around the same levels.
The Price/Forward Earnings ratio is 21.10, which indicates a rather expensive current valuation of ENB.
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 22.70. ENB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 21.1 |
4.2 Price Multiples
63.81% of the companies in the same industry are cheaper than ENB, based on the Enterprise Value to EBITDA ratio.
ENB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.2 | ||
| EV/EBITDA | 14.78 |
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)2.9
PEG (5Y)20.44
EPS Next 2Y6.91%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 6.97%, which is a nice return.
ENB's Dividend Yield is a higher than the industry average which is at 6.18.
Compared to an average S&P500 Dividend Yield of 2.38, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
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
ENB pays out 136.55% 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.
DP136.55%
EPS Next 2Y6.91%
EPS Next 3Y7.44%
49.11
+0.22 (+0.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.95%
Inst Owner Change2.51%
Ins Owners0.05%
Ins Owner Change0%
Market Cap107.10B
Analysts72.86
Price Target49.38 (0.55%)
Short Float %0.96%
Short Ratio5.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
Yearly Dividend2.77
Dividend Growth(5Y)4.1%
DP136.55%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.35%
Min EPS beat(2)6.39%
Max EPS beat(2)12.31%
EPS beat(4)2
Avg EPS beat(4)4.02%
Min EPS beat(4)-1.96%
Max EPS beat(4)12.31%
EPS beat(8)4
Avg EPS beat(8)1.69%
EPS beat(12)5
Avg EPS beat(12)0.01%
EPS beat(16)6
Avg EPS beat(16)-0.97%
Revenue beat(2)2
Avg Revenue beat(2)26.68%
Min Revenue beat(2)24.58%
Max Revenue beat(2)28.78%
Revenue beat(4)4
Avg Revenue beat(4)69.92%
Min Revenue beat(4)24.58%
Max Revenue beat(4)117.73%
Revenue beat(8)6
Avg Revenue beat(8)44.36%
Revenue beat(12)6
Avg Revenue beat(12)25.15%
Revenue beat(16)10
Avg Revenue beat(16)21.32%
PT rev (1m)-0.03%
PT rev (3m)2.1%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)-13.49%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)-11.65%
Revenue NQ rev (3m)106.03%
Revenue NY rev (1m)4.4%
Revenue NY rev (3m)11.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 21.1 | ||
| P/S | 2.28 | ||
| P/FCF | 30.2 | ||
| P/OCF | 11.39 | ||
| P/B | 2.25 | ||
| P/tB | 5.66 | ||
| EV/EBITDA | 14.78 |
EPS(TTM)2.17
EY4.42%
EPS(NY)2.33
Fwd EY4.74%
FCF(TTM)1.63
FCFY3.31%
OCF(TTM)4.31
OCFY8.78%
SpS21.5
BVpS21.83
TBVpS8.67
PEG (NY)2.9
PEG (5Y)20.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 9.51% | ||
| ROCE | 5.65% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 5.45% | ||
| OM | 17.23% | ||
| PM (TTM) | 9.65% | ||
| GM | 40.92% | ||
| FCFM | 7.56% |
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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 20.73 | ||
| Debt/EBITDA | 5.89 | ||
| Cap/Depr | 146.38% | ||
| Cap/Sales | 12.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.83% | ||
| Profit Quality | 78.33% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.94 |
F-Score5
WACC7.37%
ROIC/WACC0.59
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)7.97%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%12.07%
EPS Next Y7.81%
EPS Next 2Y6.91%
EPS Next 3Y7.44%
EPS Next 5Y7.56%
Revenue 1Y (TTM)48.17%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%31.23%
Revenue Next Year27.86%
Revenue Next 2Y12.92%
Revenue Next 3Y11.27%
Revenue Next 5Y6.39%
EBIT growth 1Y24.54%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year75.25%
EBIT Next 3Y24.1%
EBIT Next 5Y15.81%
FCF growth 1Y-40.09%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y-1.04%
OCF growth 3Y10.83%
OCF growth 5Y6.04%