ENBRIDGE INC (ENB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ENB - CA29250N1050 - Common Stock
48.12 USD
+0.29 (+0.61%)
48.1216 USD
0 (0%)
Taking everything into account, ENB scores 4 out of 10 in our fundamental rating. ENB was compared to 209 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. ENB is valied quite expensively at the moment, while it does show a decent growth rate. 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.
Each year in the past 5 years ENB has been profitable.
In the past 5 years ENB always reported a positive cash flow from operatings.
1.2 Ratios
ENB has a Return On Assets (2.59%) which is in line with its industry peers.
ENB's Return On Equity of 8.61% is in line compared to the rest of the industry. ENB outperforms 57.89% of its industry peers.
ENB has a worse Return On Invested Capital (4.12%) than 61.72% 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 21.27%.
The last Return On Invested Capital (4.12%) for ENB is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 8.61% | ||
| ROIC | 4.12% |
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 8.74%, ENB is in line with its industry, outperforming 55.02% of the companies in the same industry.
In the last couple of years the Profit Margin of ENB has declined.
With a Operating Margin value of 16.91%, ENB perfoms like the industry average, outperforming 50.72% of the companies in the same industry.
ENB's Operating Margin has improved in the last couple of years.
ENB has a Gross Margin of 41.11%. This is comparable to the rest of the industry: ENB outperforms 50.24% of its industry peers.
ENB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.91% | ||
| PM (TTM) | 8.74% | ||
| GM | 41.11% |
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
ENB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ENB has been increased compared to 1 year ago.
The number of shares outstanding for ENB has been increased compared to 5 years ago.
Compared to 1 year ago, ENB has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that ENB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ENB (0.89) is comparable to the rest of the industry.
ENB has a debt to FCF ratio of 25.58. This is a negative value and a sign of low solvency as ENB would need 25.58 years to pay back of all of its debts.
ENB has a Debt to FCF ratio (25.58) which is comparable to the rest of the industry.
ENB has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.56, ENB is not doing good in the industry: 74.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.58
WACC7.08%
2.3 Liquidity
ENB has a Current Ratio of 0.80. 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 0.80, ENB is doing worse than 67.46% of the companies in the same industry.
ENB has a Quick Ratio of 0.80. 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 0.68, ENB is doing worse than 66.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
ENB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.43%.
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 32.29% in the past year. This is a very strong growth!
ENB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)7.43%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%-16.36%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%-1.63%
3.2 Future
The Earnings Per Share is expected to grow by 7.51% on average over the next years.
Based on estimates for the next years, ENB will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y4.84%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
EPS Next 5Y7.51%
Revenue Next Year34.15%
Revenue Next 2Y15.77%
Revenue Next 3Y11.41%
Revenue Next 5Y7.45%
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
A Price/Earnings ratio of 22.81 indicates a rather expensive valuation of ENB.
ENB's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.60, ENB is valued at the same level.
The Price/Forward Earnings ratio is 21.08, which indicates a rather expensive current valuation of ENB.
ENB's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ENB to the average of the S&P500 Index (23.23), we can say ENB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 21.08 |
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 66.03% of the companies listed in the same industry.
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 | 35.45 | ||
| EV/EBITDA | 14.83 |
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)4.72
PEG (5Y)20.6
EPS Next 2Y5.66%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.98%, ENB is a good candidate for dividend investing.
ENB's Dividend Yield is a higher than the industry average which is at 3.93.
Compared to an average S&P500 Dividend Yield of 2.00, ENB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
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 152.61% 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.
DP152.61%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
48.12
+0.29 (+0.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners55.47%
Inst Owner Change-2.4%
Ins Owners0.05%
Ins Owner Change0%
Market Cap104.96B
Revenue(TTM)64.23B
Net Income(TTM)5.61B
Analysts72.14
Price Target51.47 (6.96%)
Short Float %0.65%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
Yearly Dividend2.81
Dividend Growth(5Y)4.1%
DP152.61%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.44%
Min EPS beat(2)-11.44%
Max EPS beat(2)12.31%
EPS beat(4)2
Avg EPS beat(4)1.65%
Min EPS beat(4)-11.44%
Max EPS beat(4)12.31%
EPS beat(8)3
Avg EPS beat(8)-0.05%
EPS beat(12)4
Avg EPS beat(12)-1.22%
EPS beat(16)5
Avg EPS beat(16)-1.89%
Revenue beat(2)2
Avg Revenue beat(2)13.23%
Min Revenue beat(2)1.89%
Max Revenue beat(2)24.58%
Revenue beat(4)4
Avg Revenue beat(4)40.96%
Min Revenue beat(4)1.89%
Max Revenue beat(4)108.58%
Revenue beat(8)7
Avg Revenue beat(8)46.34%
Revenue beat(12)7
Avg Revenue beat(12)26.28%
Revenue beat(16)10
Avg Revenue beat(16)20.58%
PT rev (1m)2.9%
PT rev (3m)4.24%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.18%
Revenue NY rev (1m)5.94%
Revenue NY rev (3m)4.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 21.08 | ||
| P/S | 2.24 | ||
| P/FCF | 35.45 | ||
| P/OCF | 11.21 | ||
| P/B | 2.2 | ||
| P/tB | 5.7 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)2.11
EY4.38%
EPS(NY)2.28
Fwd EY4.74%
FCF(TTM)1.36
FCFY2.82%
OCF(TTM)4.29
OCFY8.92%
SpS21.51
BVpS21.82
TBVpS8.45
PEG (NY)4.72
PEG (5Y)20.6
Graham Number32.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 8.61% | ||
| ROCE | 5.38% | ||
| ROIC | 4.12% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 5.17% | ||
| OM | 16.91% | ||
| PM (TTM) | 8.74% | ||
| GM | 41.11% | ||
| FCFM | 6.31% |
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%
ROICexgc growth 3Y-2.31%
ROICexgc 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 | 1.56 | ||
| Debt/FCF | 25.58 | ||
| Debt/EBITDA | 6.2 | ||
| Cap/Depr | 157.09% | ||
| Cap/Sales | 13.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.99% | ||
| Profit Quality | 72.23% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.89 |
F-Score5
WACC7.08%
ROIC/WACC0.58
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)7.43%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%-16.36%
EPS Next Y4.84%
EPS Next 2Y5.66%
EPS Next 3Y6.96%
EPS Next 5Y7.51%
Revenue 1Y (TTM)32.29%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%-1.63%
Revenue Next Year34.15%
Revenue Next 2Y15.77%
Revenue Next 3Y11.41%
Revenue Next 5Y7.45%
EBIT growth 1Y13.39%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year73.94%
EBIT Next 3Y24.05%
EBIT Next 5Y16.05%
FCF growth 1Y-55.29%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y-8.43%
OCF growth 3Y10.83%
OCF growth 5Y6.04%
ENBRIDGE INC / ENB FAQ
What is the fundamental rating for ENB stock?
ChartMill assigns a fundamental rating of 4 / 10 to ENB.
What is the valuation status for ENB stock?
ChartMill assigns a valuation rating of 2 / 10 to ENBRIDGE INC (ENB). This can be considered as Overvalued.
What is the profitability of ENB stock?
ENBRIDGE INC (ENB) has a profitability rating of 5 / 10.
What is the expected EPS growth for ENBRIDGE INC (ENB) stock?
The Earnings per Share (EPS) of ENBRIDGE INC (ENB) is expected to grow by 4.84% in the next year.
Is the dividend of ENBRIDGE INC sustainable?
The dividend rating of ENBRIDGE INC (ENB) is 7 / 10 and the dividend payout ratio is 152.61%.