TSX:ENB

Stock Analysis Report

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Executive Summary

Enbridge Inc. operates as an energy infrastructure company in Canada and the United States.


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Enbridge's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

ENB

6.6%

CA Oil and Gas

2.6%

CA Market


1 Year Return

0.4%

ENB

-18.7%

CA Oil and Gas

-3.0%

CA Market

Return vs Industry: ENB exceeded the Canadian Oil and Gas industry which returned -20% over the past year.

Return vs Market: ENB exceeded the Canadian Market which returned -3.5% over the past year.


Shareholder returns

ENBIndustryMarket
7 Day4.5%6.6%2.6%
30 Day11.6%12.0%7.1%
90 Day-1.2%6.7%14.9%
1 Year7.0%0.4%-14.3%-18.7%0.4%-3.0%
3 Year4.7%-11.5%-20.6%-30.1%13.0%2.1%
5 Year3.3%-19.8%-18.5%-32.4%35.7%14.9%

Price Volatility Vs. Market

How volatile is Enbridge's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Enbridge undervalued compared to its fair value and its price relative to the market?

20.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENB (CA$44.81) is trading below our estimate of fair value (CA$56.26)

Significantly Below Fair Value: ENB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ENB is poor value based on its PE Ratio (47.3x) compared to the CA Oil and Gas industry average (19x).

PE vs Market: ENB is poor value based on its PE Ratio (47.3x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: ENB is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ENB is overvalued based on its PB Ratio (1.5x) compared to the CA Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Enbridge forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

47.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENB's forecast earnings growth (47.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ENB's earnings (47.6% per year) are forecast to grow faster than the Canadian market (26.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ENB's revenue (6.4% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: ENB's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENB's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Enbridge performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENB has a large one-off loss of CA$2.7B impacting its June 30 2020 financial results.

Growing Profit Margin: ENB's current net profit margins (4.4%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: ENB's earnings have grown significantly by 33.4% per year over the past 5 years.

Accelerating Growth: ENB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ENB had negative earnings growth (-58.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (-52%).


Return on Equity

High ROE: ENB's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Enbridge's financial position?


Financial Position Analysis

Short Term Liabilities: ENB's short term assets (CA$7.0B) do not cover its short term liabilities (CA$11.4B).

Long Term Liabilities: ENB's short term assets (CA$7.0B) do not cover its long term liabilities (CA$83.3B).


Debt to Equity History and Analysis

Debt Level: ENB's debt to equity ratio (96.6%) is considered high.

Reducing Debt: ENB's debt to equity ratio has reduced from 184.3% to 96.6% over the past 5 years.

Debt Coverage: ENB's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: ENB's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Enbridge current dividend yield, its reliability and sustainability?

7.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ENB's dividend (7.23%) is higher than the bottom 25% of dividend payers in the Canadian market (1.79%).

High Dividend: ENB's dividend (7.23%) is in the top 25% of dividend payers in the Canadian market (5.77%)


Stability and Growth of Payments

Stable Dividend: ENB's dividends per share have been stable in the past 10 years.

Growing Dividend: ENB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (326.6%), ENB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENB's dividends in 3 years are not forecast to be well covered by earnings (117% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Al Monaco (60 yo)

7.83yrs

Tenure

CA$17,993,384

Compensation

Mr. Al Monaco has been Chief Executive Officer of Enbridge Inc. since October 1, 2012 and its President & Director since February 2012. Mr. Monaco serves as Director at Weyerhaeuser Company since February ...


CEO Compensation Analysis

Compensation vs Market: Al's total compensation ($USD13.47M) is above average for companies of similar size in the Canadian market ($USD7.09M).

Compensation vs Earnings: Al's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Al Monaco
President7.83yrsCA$17.99m0.043%
CA$ 39.3m
Colin Gruending
Executive VP & CFO1.17yrsCA$4.12m0.0020%
CA$ 1.8m
John Whelen
Executive VP & Chief Development Officer1.17yrsCA$4.59m0.010%
CA$ 9.1m
Dai-Chung Yu
Executive VP & President of Liquids Pipelines1.17yrsCA$4.97m0.0081%
CA$ 7.3m
William Yardley
Executive VP and President of Gas Transmission & Midstream3.5yrsCA$6.78m0.0060%
CA$ 5.4m
Patrick Murray
Senior VP & Chief Accounting Officer0.17yrno datano data
Bhushan Ivaturi
Senior VP & Chief Information Officerno datano datano data
Jonathan Morgan
Vice President of Investor Relationsno datano datano data
Tyler Robinson
VP & Chief Compliance Officerno datano datano data
Robert Rooney
Executive VP & Chief Legal Officer3.5yrsCA$2.15m0.0021%
CA$ 1.9m
Roxanna Benoit
Vice President of Public Affairs3.5yrsno datano data
Allen Capps
Senior Vice President of Corporate Development & Investment Review3.5yrsno data0.00079%
CA$ 716.9k

3.5yrs

Average Tenure

54yo

Average Age

Experienced Management: ENB's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Al Monaco
President7.83yrsCA$17.99m0.043%
CA$ 39.3m
Marcel Coutu
Independent Director6.08yrsCA$357.08k0.0018%
CA$ 1.7m
Pamela Carter
Independent Director3.5yrsCA$369.22k0.0022%
CA$ 2.0m
Susan Cunningham
Independent Director1.5yrsCA$314.10k0.000090%
CA$ 81.7k
Gregory Ebel
Non-Executive Chairman3.5yrsCA$706.13k0.032%
CA$ 29.2m
David Tutcher
Director14.25yrsCA$357.08k0.031%
CA$ 28.6m
Teresa Madden
Independent Director1.5yrsCA$320.08k0.000050%
CA$ 45.4k
V. Kempston Darkes
Independent Director9.75yrsCA$376.65k0.0011%
CA$ 971.0k
Stephen Poloz
Director0.17yrno datano data
Gregory Goff
Independent Director0.50yrno datano data
James England
Independent Director13.58yrsCA$391.26k0.0017%
CA$ 1.6m

3.5yrs

Average Tenure

64yo

Average Age

Experienced Board: ENB's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ENB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Enbridge Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enbridge Inc.
  • Ticker: ENB
  • Exchange: TSX
  • Founded: 1949
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: CA$90.749b
  • Shares outstanding: 2.03b
  • Website: https://www.enbridge.com

Number of Employees


Location

  • Enbridge Inc.
  • 200, Fifth Avenue Place
  • 425 - 1st Street SW
  • Calgary
  • Alberta
  • T2P 3L8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENBTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
ENBNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
EN3DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
0KTILSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
ENB.PRUTSX (The Toronto Stock Exchange)CUM RED PRF JCAUSDApr 2012
ENBB.FOTCPK (Pink Sheets LLC)CUM RED PRF JUSUSDApr 2012
ENB.PFUTSX (The Toronto Stock Exchange)CUM RED PF S LCAUSDMay 2012
EBBN.FOTCPK (Pink Sheets LLC)CUM RED PF S LUSUSDMay 2012
ENB.PRPTSX (The Toronto Stock Exchange)PREF SER P 4%CACADSep 2012
ENB.PRVTSX (The Toronto Stock Exchange)CUM PREF SHS SR1CAUSDMay 2013
ENB.PRYTSX (The Toronto Stock Exchange)PREF SHS SER 3CACADJun 2013
ENB.PFVTSX (The Toronto Stock Exchange)RED PRF SHS SER5CACADOct 2013
ENB.PRJTSX (The Toronto Stock Exchange)RED PREF SHS 7CACADDec 2013
ENB.PFATSX (The Toronto Stock Exchange)4.4% PFD SER 9CACADMar 2014
ENB.PFCTSX (The Toronto Stock Exchange)4.4% PFD SR 11CACADMay 2014
ENB.PFGTSX (The Toronto Stock Exchange)PREF SER 15CACADSep 2014
ENB.PFITSX (The Toronto Stock Exchange)CUM RED PREF 17CACADNov 2016
ENB.PRCTSX (The Toronto Stock Exchange)CUM RED PFD CCACADJun 2017

Biography

Enbridge Inc. operates as an energy infrastructure company in Canada and the United States. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:47
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.