TSX:ENB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record 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


Market Performance


7 Day Return

2.3%

ENB

0.4%

CA Oil and Gas

-0.1%

CA Market


1 Year Return

13.0%

ENB

-12.5%

CA Oil and Gas

0.9%

CA Market

Return vs Industry: ENB exceeded the Canadian Oil and Gas industry which returned -12.5% over the past year.

Return vs Market: ENB exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

ENBIndustryMarket
7 Day2.3%0.4%-0.1%
30 Day2.4%-2.7%-2.1%
90 Day0.9%-4.4%-1.6%
1 Year20.2%13.0%-8.6%-12.5%4.4%0.9%
3 Year-3.4%-18.0%-14.8%-23.4%15.5%5.2%
5 Year16.3%-8.1%-22.2%-34.0%25.7%7.5%

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?

20.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ENB (CA$47.42) is trading below our estimate of fair value (CA$59.71)

Significantly Undervalued: ENB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ENB is poor value based on its PE Ratio (19.3x) compared to the Oil and Gas industry average (8.3x).

PE vs Market: ENB is poor value based on its PE Ratio (19.3x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ENB is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: ENB is overvalued based on its PB Ratio (1.6x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Enbridge forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENB's forecast earnings growth (3.7% per year) is above the savings rate (1.9%).

Earnings vs Market: ENB's earnings (3.7% per year) are forecast to grow slower than the Canadian market (13.2% per year).

High Growth Earnings: ENB's earnings are forecast to grow, but not significantly.

Revenue vs Market: ENB's revenue (4.9% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: ENB's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ENB's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Enbridge performed over the past 5 years?

37.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ENB's earnings have grown significantly by 37.3% per year over the past 5 years.

Accelerating Growth: ENB's earnings growth over the past year (85.9%) exceeds its 5-year average (37.3% per year).

Earnings vs Industry: ENB earnings growth over the past year (85.9%) exceeded the Oil and Gas industry 62.2%.


Return on Equity

High ROE: ENB's Return on Equity (7.3%) is considered low.


Return on Assets

ROA vs Industry: ENB's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: ENB has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Enbridge's financial position?


Financial Position Analysis

Short Term Liabilities: ENB's short term assets (CA$8.4B) do not cover its short term liabilities (CA$13.4B)

Long Term Liabilities: ENB's short term assets (8.4B) do not cover its long term liabilities (78.7B)


Debt to Equity History and Analysis

Debt Level: ENB's debt to equity ratio (91.2%) is considered high

Reducing Debt: ENB's debt to equity ratio has reduced from 155.1% to 91.2% over the past 5 years.

Debt Coverage: ENB's debt is not well covered by operating cash flow (13%).

Interest Coverage: ENB's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: ENB has a high level of physical assets or inventory.

Debt Coverage by Assets: ENB's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

6.23%

Current Dividend Yield


Dividend Yield vs Market

company6.2%marketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Years6.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ENB's dividend (6.23%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: ENB's dividend (6.23%) is in the top 25% of dividend payers in the Canadian market (5.98%)

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 (115%), 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 (106.9% payout ratio).


Next Steps

Management

What is the CEO of Enbridge's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Al Monaco (59yo)

7yrs

Tenure

CA$9,530,194

Compensation

Mr. Al Monaco has been Chief Executive Officer of Enbridge Inc. since October 1, 2012 and its Director since February 2012 and was its President since February 2012 until June 1, 2019. Mr. Monaco joined En ...


CEO Compensation Analysis

Compensation vs. Market: Al's total compensation ($USD9.53M) is about average for companies of similar size in the Canadian market ($USD6.86M).

Compensation vs Earnings: Al's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

59yo

Average Age

Experienced Management: ENB's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

68.5yo

Average Age

Experienced Board: ENB's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCA$120,00027 Sep 19
Bradley Shamla
EntityIndividual
Shares2,537
Max PriceCA$47.30
BuyCA$43,15008 Aug 19
Christopher Johnston
EntityIndividual
Shares1,000
Max PriceCA$43.15
BuyCA$390,90907 Jun 19
Al Monaco
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares7,848
Max PriceCA$49.81
SellCA$737,47228 Mar 19
William Yardley
EntityIndividual
Role
Senior Key Executive
Executive VP and President of Gas Transmission & Midstream
Shares14,900
Max PriceCA$49.49
BuyCA$4,17219 Mar 19
Cynthia Hansen
EntityIndividual
Shares95
Max PriceCA$43.92
BuyCA$110,45012 Mar 19
Cynthia Hansen
EntityIndividual
Shares1,790
Max PriceCA$65.16
BuyCA$385,07007 Mar 19
Al Monaco
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares7,806
Max PriceCA$49.33
SellCA$317,87225 Feb 19
Allen Capps
EntityIndividual
Shares6,514
Max PriceCA$48.80
BuyCA$11,46507 Dec 18
Robert Rooney
EntityIndividual
Role
Chief Legal Officer
Executive VP & Chief Legal Officer
Shares261
Max PriceCA$43.93
BuyCA$331,67407 Dec 18
Al Monaco
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares7,569
Max PriceCA$43.82

Ownership Breakdown


Management Team

  • John Whelen (59yo)

    Executive VP & Chief Development Officer

    • Tenure: 0.3yrs
    • Compensation: CA$2.87m
  • Robert Rooney (62yo)

    Executive VP & Chief Legal Officer

    • Tenure: 2.7yrs
    • Compensation: CA$2.15m
  • Al Monaco (59yo)

    CEO & Director

    • Tenure: 7yrs
    • Compensation: CA$9.53m
  • Bill Yardley (54yo)

    Executive VP and President of Gas Transmission & Midstream

    • Tenure: 2.7yrs
    • Compensation: CA$3.25m
  • Colin Gruending

    Executive VP & CFO

    • Tenure: 0.3yrs
  • Tyler Robinson

    Vice President

    • Tenure: 0yrs
  • D. Jarvis (55yo)

    Executive VP & President of Liquids Pipelines

    • Tenure: 6yrs
    • Compensation: CA$2.70m
  • Roxanna Benoit

    Vice President of Public Affairs

    • Tenure: 2.7yrs
  • Bhushan Ivaturi

    Senior VP & Chief Information Officer

    • Tenure: 0yrs
  • Jonathan Morgan

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Marcel Coutu (65yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$244.30k
  • Pam Carter (69yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: CA$248.80k
  • Susan Cunningham (63yo)

    Independent Director

    • Tenure: 0.7yrs
  • Greg Ebel (55yo)

    Non-Executive Chairman

    • Tenure: 2.7yrs
    • Compensation: CA$520.36k
  • Dan Tutcher (70yo)

    Director

    • Tenure: 13.4yrs
    • Compensation: CA$257.14k
  • Charlie Fischer (69yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: CA$259.05k
  • V. Kempston Darkes (70yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: CA$260.14k
  • Al Monaco (59yo)

    CEO & Director

    • Tenure: 7yrs
    • Compensation: CA$9.53m
  • Cathy Williams (68yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: CA$259.30k
  • Herb England (72yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: CA$461.39k

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$95.971b
  • Shares outstanding: 2.02b
  • 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
0KTILSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
EN3DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
ENBNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 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)4.4 PFD 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 Analysis2019/10/14 23:33
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.