ENBRIDGE INC (ENB) Stock Fundamental Analysis
NYSE:ENB - New York Stock Exchange, Inc. - CA29250N1050 - Common Stock - Currency: USD
Taking everything into account, ENB scores 3 out of 10 in our fundamental rating. ENB was compared to 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. 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
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.
ENB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENB's Return On Assets of 2.31% is in line compared to the rest of the industry. ENB outperforms 42.25% of its industry peers.
With a Return On Equity value of 7.67%, ENB perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
ENB has a Return On Invested Capital of 3.85%. This is in the lower half of the industry: ENB underperforms 65.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENB is significantly below the industry average of 25.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 7.67% | ||
| ROIC | 3.85% |
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
ENB has a Profit Margin (9.45%) which is comparable to the rest of the industry.
ENB's Profit Margin has declined in the last couple of years.
ENB has a Operating Margin (18.31%) which is in line with its industry peers.
ENB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 45.63%, ENB perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
ENB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.31% | ||
| PM (TTM) | 9.45% | ||
| GM | 45.63% |
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.
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
ENB has an Altman-Z score of 0.76. This is a bad value and indicates that ENB is not financially healthy and even has some risk of bankruptcy.
ENB has a Altman-Z score (0.76) which is in line with its industry peers.
ENB has a debt to FCF ratio of 17.93. This is a negative value and a sign of low solvency as ENB would need 17.93 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.93, ENB perfoms like the industry average, outperforming 44.13% of the companies in the same industry.
ENB has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ENB (1.43) is worse than 75.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.44
WACC8.79%
2.3 Liquidity
A Current Ratio of 0.55 indicates that ENB may have some problems paying its short term obligations.
ENB has a Current ratio of 0.55. This is amonst the worse of the industry: ENB underperforms 83.10% of its industry peers.
ENB has a Quick Ratio of 0.55. This is a bad value and indicates that ENB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.49, ENB is not doing good in the industry: 82.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.36% 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.
Looking at the last year, ENB shows a very strong growth in Revenue. The Revenue has grown by 22.51%.
The Revenue has been growing slightly by 1.32% on average over the past years.
EPS 1Y (TTM)0.36%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%17.19%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%43.54%
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 8.26% on average per year.
ENB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.28% yearly.
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y8.26%
Revenue Next Year14.85%
Revenue Next 2Y9.07%
Revenue Next 3Y7.26%
Revenue Next 5Y0.28%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.08, ENB is valued on the expensive side.
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 (28.18), we can say ENB is valued inline with the index average.
The Price/Forward Earnings ratio is 21.35, which indicates a rather expensive current valuation of ENB.
ENB's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, ENB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 21.35 |
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 67.14% 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 | 24.9 | ||
| EV/EBITDA | 16.08 |
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)2.77
PEG (5Y)20.85
EPS Next 2Y7.73%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
ENB has a Yearly Dividend Yield of 5.85%, which is a nice return.
ENB's Dividend Yield is a higher than the industry average which is at 7.29.
ENB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
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
163.51% of the earnings are spent on dividend by ENB. This is not a sustainable payout ratio.
The dividend of ENB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP163.51%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
46.86
+0.38 (+0.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner Change-1.45%
Ins Owners0.05%
Ins Owner Change0%
Market Cap102.16B
Analysts72.14
Price Target47.65 (1.69%)
Short Float %1.35%
Short Ratio7.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
Yearly Dividend2.78
Dividend Growth(5Y)4.1%
DP163.51%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.32%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.67%
EPS beat(4)1
Avg EPS beat(4)-0.15%
Min EPS beat(4)-9.75%
Max EPS beat(4)11.79%
EPS beat(8)2
Avg EPS beat(8)-0.91%
EPS beat(12)3
Avg EPS beat(12)-2.18%
EPS beat(16)6
Avg EPS beat(16)-0.23%
Revenue beat(2)2
Avg Revenue beat(2)113.16%
Min Revenue beat(2)108.58%
Max Revenue beat(2)117.73%
Revenue beat(4)4
Avg Revenue beat(4)82.85%
Min Revenue beat(4)8.67%
Max Revenue beat(4)117.73%
Revenue beat(8)4
Avg Revenue beat(8)33.02%
Revenue beat(12)6
Avg Revenue beat(12)22.01%
Revenue beat(16)9
Avg Revenue beat(16)19.55%
PT rev (1m)3.79%
PT rev (3m)7.85%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)1.12%
EPS NY rev (1m)-1.38%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)22.25%
Revenue NQ rev (3m)79.16%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)46.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 21.35 | ||
| P/S | 2.64 | ||
| P/FCF | 24.9 | ||
| P/OCF | 11.2 | ||
| P/B | 2.14 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 16.08 |
EPS(TTM)2.03
EY4.33%
EPS(NY)2.19
Fwd EY4.68%
FCF(TTM)1.88
FCFY4.02%
OCF(TTM)4.18
OCFY8.93%
SpS17.75
BVpS21.87
TBVpS8.2
PEG (NY)2.77
PEG (5Y)20.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 7.67% | ||
| ROCE | 5.02% | ||
| ROIC | 3.85% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 4.94% | ||
| OM | 18.31% | ||
| PM (TTM) | 9.45% | ||
| GM | 45.63% | ||
| FCFM | 10.6% |
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-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 17.93 | ||
| Debt/EBITDA | 6.28 | ||
| Cap/Depr | 134.12% | ||
| Cap/Sales | 12.96% | ||
| Interest Coverage | 2.37 | ||
| Cash Conversion | 84.22% | ||
| Profit Quality | 112.21% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.76 |
F-Score4
WACC8.79%
ROIC/WACC0.44
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)0.36%
EPS 3Y0.6%
EPS 5Y1.11%
EPS Q2Q%17.19%
EPS Next Y8.32%
EPS Next 2Y7.73%
EPS Next 3Y7.74%
EPS Next 5Y8.26%
Revenue 1Y (TTM)22.51%
Revenue growth 3Y4.34%
Revenue growth 5Y1.32%
Sales Q2Q%43.54%
Revenue Next Year14.85%
Revenue Next 2Y9.07%
Revenue Next 3Y7.26%
Revenue Next 5Y0.28%
EBIT growth 1Y10%
EBIT growth 3Y7.35%
EBIT growth 5Y3.7%
EBIT Next Year75.24%
EBIT Next 3Y24.16%
EBIT Next 5Y16.03%
FCF growth 1Y-39.2%
FCF growth 3Y69.56%
FCF growth 5Y8.88%
OCF growth 1Y-11.27%
OCF growth 3Y10.83%
OCF growth 5Y6.04%