ENBRIDGE INC (ENB)

CA29250N1050 - Common Stock

36.78  0 (0%)

After market: 36.79 +0.01 (+0.03%)

Fundamental Rating

3

ENB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 213 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. While showing a medium growth rate, ENB is valued expensive at the moment. ENB also has an excellent dividend rating.



5

1. Profitability

1.1 Basic Checks

ENB had positive earnings in the past year.
In the past year ENB had a positive cash flow from operations.
Each year in the past 5 years ENB has been profitable.
Each year in the past 5 years ENB had a positive operating cash flow.

1.2 Ratios

ENB has a worse Return On Assets (3.24%) than 66.20% of its industry peers.
Looking at the Return On Equity, with a value of 9.50%, ENB is doing worse than 61.03% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.86%, ENB is doing worse than 73.71% of the companies in the same industry.
ENB had an Average Return On Invested Capital over the past 3 years of 3.72%. This is significantly below the industry average of 38.42%.
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 RankSector 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

ENB's Profit Margin of 13.38% is in line compared to the rest of the industry. ENB outperforms 50.70% of its industry peers.
In the last couple of years the Profit Margin of ENB has grown nicely.
Looking at the Operating Margin, with a value of 20.40%, ENB is in line with its industry, outperforming 46.01% of the companies in the same industry.
ENB's Operating Margin has improved in the last couple of years.
ENB has a Gross Margin (50.84%) which is in line with its industry peers.
ENB's Gross Margin has improved in the last couple of years.
Industry RankSector 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%

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENB is destroying value.
The number of shares outstanding for ENB has been reduced compared to 1 year ago.
Compared to 5 years ago, ENB has more shares outstanding
Compared to 1 year ago, ENB has about the same debt to assets ratio.

2.2 Solvency

ENB has an Altman-Z score of 0.79. 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 (0.79) is worse than 66.20% of its industry peers.
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.
ENB has a Debt to FCF ratio (8.71) which is in line with its industry peers.
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: 76.53% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.22
Debt/FCF 8.71
Altman-Z 0.79
ROIC/WACC0.64
WACC6.01%

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.
Looking at the Current ratio, with a value of 0.83, ENB is doing worse than 71.83% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that ENB may have some problems paying its short term obligations.
ENB has a worse Quick ratio (0.74) than 69.48% of its industry peers.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.74

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.42% over the past year.
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.
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 growth Q2Q8.24%
Revenue 1Y (TTM)-18.12%
Revenue growth 3Y3.75%
Revenue growth 5Y-1.21%
Revenue growth Q2Q-8.59%

3.2 Future

The Earnings Per Share is expected to grow by 9.10% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.58% on average over the next years.
EPS Next Y2.31%
EPS Next 2Y3.64%
EPS Next 3Y5.79%
EPS Next 5Y9.1%
Revenue Next Year2.61%
Revenue Next 2Y3.58%
Revenue Next 3Y3.41%
Revenue Next 5Y5.58%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.51, ENB is valued on the expensive side.
ENB's Price/Earnings ratio is a bit more expensive when compared to the industry. ENB is more expensive than 64.32% of the companies in the same industry.
ENB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.52.
With a Price/Forward Earnings ratio of 16.72, ENB is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENB indicates a slightly more expensive valuation: ENB is more expensive than 62.91% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.13. ENB is around the same levels.
Industry RankSector Rank
PE 17.51
Fwd PE 16.72

4.2 Price Multiples

ENB's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ENB is more expensive than 74.18% of the companies in the same industry.
ENB's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 11.43
EV/EBITDA 13.42

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)7.58
PEG (5Y)19.83
EPS Next 2Y3.64%
EPS Next 3Y5.79%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.31%, ENB is a good candidate for dividend investing.
ENB's Dividend Yield is a higher than the industry average which is at 5.80.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
Industry RankSector Rank
Dividend Yield 7.31%

5.2 History

The dividend of ENB is nicely growing with an annual growth rate of 10.75%!
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)10.75%
Div Incr Years11
Div Non Decr Years11

5.3 Sustainability

ENB pays out 130.64% 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.
DP130.64%
EPS Next 2Y3.64%
EPS Next 3Y5.79%

ENBRIDGE INC

NYSE:ENB (5/21/2024, 7:20:48 PM)

After market: 36.79 +0.01 (+0.03%)

36.78

0 (0%)

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 Cap78.20B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 7.31%
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)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
Avg Revenue beat(8)
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 RankSector Rank
PE 17.51
Fwd PE 16.72
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)7.58
PEG (5Y)19.83
Profitability
Industry RankSector 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 RankSector 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)1.42%
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