ENBRIDGE INC (ENB)
CA29250N1050 - Common Stock
Overall ENB gets a fundamental rating of 3 out of 10. We evaluated ENB against 210 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
In the past year ENB was profitable.
ENB had a positive operating cash flow in the past year.
In the past 5 years ENB has always been profitable.
ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENB's Return On Assets of 2.90% is on the low side compared to the rest of the industry. ENB is outperformed by 66.67% of its industry peers.
ENB has a Return On Equity (8.60%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.64%, ENB is not doing good in the industry: 72.38% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for ENB is significantly below the industry average of 30.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 8.6% | ||
| ROIC | 3.64% |
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
With a Profit Margin value of 12.97%, ENB perfoms like the industry average, outperforming 51.90% of the companies in the same industry.
In the last couple of years the Profit Margin of ENB has grown nicely.
ENB has a Operating Margin (21.30%) which is in line with its industry peers.
ENB's Operating Margin has improved in the last couple of years.
The Gross Margin of ENB (52.76%) 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 | 21.3% | ||
| PM (TTM) | 12.97% | ||
| GM | 52.76% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENB is destroying value.
ENB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ENB has more shares outstanding
ENB has about the same debt/assets ratio as last year.
2.2 Solvency
ENB has an Altman-Z score of 0.74. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
ENB has a worse Altman-Z score (0.74) than 66.19% of its industry peers.
ENB has a debt to FCF ratio of 10.21. This is a negative value and a sign of low solvency as ENB would need 10.21 years to pay back of all of its debts.
ENB's Debt to FCF ratio of 10.21 is in line compared to the rest of the industry. ENB outperforms 44.29% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that ENB has dependencies on debt financing.
With a Debt to Equity ratio value of 1.27, ENB is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 10.21 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.62
WACC5.85%
2.3 Liquidity
A Current Ratio of 0.68 indicates that ENB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, ENB is doing worse than 78.10% of the companies in the same industry.
ENB has a Quick Ratio of 0.68. 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 Quick ratio of 0.59 is on the low side compared to the rest of the industry. ENB is outperformed by 79.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.42%.
The Earnings Per Share has been growing slightly by 0.88% on average over the past years.
The Revenue for ENB has decreased by -15.26% in the past year. This is quite bad
ENB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.21% yearly.
EPS 1Y (TTM)1.42%
EPS 3Y4.71%
EPS 5Y0.88%
EPS Q2Q%8.24%
Revenue 1Y (TTM)-15.26%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Sales Q2Q%-8.59%
3.2 Future
Based on estimates for the next years, ENB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.55% on average per year.
ENB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.93% yearly.
EPS Next Y7.6%
EPS Next 2Y5.81%
EPS Next 3Y6.93%
EPS Next 5Y8.55%
Revenue Next Year-34.39%
Revenue Next 2Y-16.72%
Revenue Next 3Y-8.42%
Revenue Next 5Y5.93%
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
The Price/Earnings ratio is 17.71, which indicates a rather expensive current valuation of ENB.
ENB's Price/Earnings ratio is a bit more expensive when compared to the industry. ENB is more expensive than 64.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of ENB to the average of the S&P500 Index (24.41), we can say ENB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.24, ENB is valued correctly.
Based on the Price/Forward Earnings ratio, ENB is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.59. ENB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 16.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENB indicates a slightly more expensive valuation: ENB is more expensive than 74.29% of the companies listed in the same industry.
ENB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 14.05 |
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)2.33
PEG (5Y)20.05
EPS Next 2Y5.81%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 7.36%, which is a nice return.
Compared to an average industry Dividend Yield of 5.93, ENB pays a bit more dividend than its industry peers.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
5.2 History
On average, the dividend of ENB grows each year by 10.75%, which is quite nice.
ENB has paid a dividend for at least 10 years, which is a reliable track record.
ENB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.75%
Div Incr Years23
Div Non Decr Years23
5.3 Sustainability
ENB pays out 140.89% of its income as dividend. 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.
DP140.89%
EPS Next 2Y5.81%
EPS Next 3Y6.93%
ENBRIDGE INC
NYSE:ENB (7/26/2024, 7:27:06 PM)
After market: 36.69 +0.03 (+0.08%)36.66
+0.33 (+0.91%)
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 Cap77.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
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(8)
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EPS beat(16)
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Revenue beat(2)
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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 | 17.71 | ||
| Fwd PE | 16.24 | ||
| 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)2.33
PEG (5Y)20.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 8.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.3% | ||
| PM (TTM) | 12.97% | ||
| GM | 52.76% | ||
| 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.59 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)1.42%
EPS 3Y4.71%
EPS 5Y
EPS Q2Q%
EPS Next Y7.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.26%
Revenue growth 3Y3.75%
Revenue growth 5Y
Sales 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