ENBRIDGE INC (ENB) Stock Fundamental Analysis
NYSE:ENB - New York Stock Exchange, Inc. - CA29250N1050 - Common Stock - Currency: USD
ENB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 213 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. 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.
In the past year ENB had a positive cash flow from operations.
ENB had positive earnings in each of the past 5 years.
ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENB has a Return On Assets (2.68%) which is comparable to the rest of the industry.
ENB has a Return On Equity (8.64%) which is in line with its industry peers.
ENB has a Return On Invested Capital of 4.07%. This is in the lower half of the industry: ENB underperforms 63.38% of its industry peers.
ENB had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 23.54%.
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
The Profit Margin of ENB (9.67%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ENB has declined.
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.
The Gross Margin of ENB (42.37%) is comparable to the rest of the 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.
ENB has more shares outstanding than it did 5 years ago.
ENB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that ENB is in the distress zone and has some risk of bankruptcy.
ENB has a Altman-Z score (0.83) which is in line with its industry peers.
ENB has a debt to FCF ratio of 20.56. This is a negative value and a sign of low solvency as ENB would need 20.56 years to pay back of all of its debts.
ENB has a Debt to FCF ratio of 20.56. This is comparable to the rest of the industry: ENB outperforms 45.07% 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.
ENB's Debt to Equity ratio of 1.44 is on the low side compared to the rest of the industry. ENB is outperformed by 75.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.71
WACC5.74%
2.3 Liquidity
ENB has a Current 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.
ENB's Current ratio of 0.73 is on the low side compared to the rest of the industry. ENB is outperformed by 73.24% of its industry peers.
A Quick Ratio of 0.66 indicates that ENB may have some problems paying its short term obligations.
With a Quick ratio value of 0.66, ENB is not doing good in the industry: 70.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.75%.
Measured over the past 5 years, ENB shows a small growth in Earnings Per Share. The EPS has been growing by 1.11% on average per year.
ENB shows a strong growth in Revenue. In the last year, 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.
ENB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.41% yearly.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.19, the valuation of ENB can be described as rather expensive.
ENB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ENB to the average of the S&P500 Index (26.34), we can say ENB is valued inline with the index average.
The Price/Forward Earnings ratio is 18.96, which indicates a rather expensive current valuation of ENB.
The rest of the industry has a similar Price/Forward Earnings ratio as ENB.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.03, ENB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENB is valued a bit more expensive than the industry average as 62.44% of the companies are valued more cheaply.
ENB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.78 | ||
| EV/EBITDA | 14.57 |
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)2.55
PEG (5Y)19.14
EPS Next 2Y7.73%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 6.79%, which is a nice return.
Compared to an average industry Dividend Yield of 6.42, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
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 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.
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%
44.93
+0.15 (+0.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.95%
Inst Owner Change-0.04%
Ins Owners0.05%
Ins Owner Change0%
Market Cap97.95B
Analysts72.14
Price Target48.71 (8.41%)
Short Float %1.44%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
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)1.61%
PT rev (3m)8.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 18.96 | ||
| P/S | 2.2 | ||
| P/FCF | 26.78 | ||
| P/OCF | 10.75 | ||
| P/B | 1.97 | ||
| P/tB | 4.95 | ||
| EV/EBITDA | 14.57 |
EPS(TTM)2.12
EY4.72%
EPS(NY)2.37
Fwd EY5.27%
FCF(TTM)1.68
FCFY3.73%
OCF(TTM)4.18
OCFY9.31%
SpS20.38
BVpS22.83
TBVpS9.08
PEG (NY)2.55
PEG (5Y)19.14
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 | 0.83 |
F-Score5
WACC5.74%
ROIC/WACC0.71
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%