ENBRIDGE INC (ENB) Stock Fundamental Analysis
NYSE:ENB - New York Stock Exchange, Inc. - CA29250N1050 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ENB. ENB was compared to 211 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. 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
ENB had positive earnings in the past year.
ENB had a positive operating cash flow in the past year.
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
ENB has a Return On Assets of 2.68%. This is comparable to the rest of the industry: ENB outperforms 45.97% of its industry peers.
The Return On Equity of ENB (8.64%) is comparable to the rest of the industry.
The Return On Invested Capital of ENB (4.07%) is worse than 63.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ENB is significantly below the industry average of 23.79%.
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
With a Profit Margin value of 9.67%, ENB perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
ENB's Profit Margin has declined in the last couple of years.
The Operating Margin of ENB (17.53%) is comparable to the rest of the industry.
ENB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 42.37%, ENB perfoms like the industry average, outperforming 48.34% 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
The debt/assets ratio for ENB is higher compared to a year ago.
2.2 Solvency
ENB has an Altman-Z score of 0.82. 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 0.82, ENB perfoms like the industry average, outperforming 42.18% 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.
ENB's Debt to FCF ratio of 20.56 is in line compared to the rest of the industry. ENB outperforms 45.50% of its industry peers.
ENB has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.44, ENB is not doing good in the industry: 74.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.53
WACC7.71%
2.3 Liquidity
A Current Ratio of 0.73 indicates that ENB may have some problems paying its short term obligations.
ENB has a Current ratio of 0.73. This is in the lower half of the industry: ENB underperforms 73.46% 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.
Looking at the Quick ratio, with a value of 0.66, ENB is doing worse than 71.09% of the companies in the same 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.
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 43.00% in the past year. This is a very strong growth!
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.83% yearly.
ENB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y7.83%
Revenue Next Year14.97%
Revenue Next 2Y9.15%
Revenue Next 3Y7.36%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.01, the valuation of ENB can be described as rather expensive.
ENB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, ENB is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.78, which indicates a rather expensive current valuation of ENB.
The rest of the industry has a similar Price/Forward Earnings ratio as ENB.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ENB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than the industry average as 63.98% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.53 | ||
| EV/EBITDA | 14.52 |
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.
PEG (NY)2.52
PEG (5Y)18.98
EPS Next 2Y7.73%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.60%, ENB is a good candidate for dividend investing.
ENB's Dividend Yield is a higher than the industry average which is at 6.48.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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%
44.55
+0.06 (+0.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.95%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap97.14B
Analysts72.14
Price Target48.71 (9.34%)
Short Float %1.04%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
Yearly Dividend2.8
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)0.72%
PT rev (3m)6.66%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-12.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)5.3%
Revenue NQ rev (3m)-8.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.78 | ||
| P/S | 2.18 | ||
| P/FCF | 26.53 | ||
| P/OCF | 10.65 | ||
| P/B | 1.95 | ||
| P/tB | 4.9 | ||
| EV/EBITDA | 14.52 |
EPS(TTM)2.12
EY4.76%
EPS(NY)2.37
Fwd EY5.32%
FCF(TTM)1.68
FCFY3.77%
OCF(TTM)4.18
OCFY9.39%
SpS20.4
BVpS22.85
TBVpS9.09
PEG (NY)2.52
PEG (5Y)18.98
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 | 0.82 |
F-Score5
WACC7.71%
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 5Y7.83%
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 5Y6.39%
EBIT growth 1Y17.72%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year75.25%
EBIT Next 3Y24.1%
EBIT Next 5Y15.89%
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%