Enbridge Inc (NYSE: ENB)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0000895728
Market Cap 112.63 Bn
P/B 2.48
P/E 21.82
P/S 2.37
ROIC (Qtr) 7.74
Div Yield % 3.95
Rev 1y % (Qtr) 11.33
Total Debt (Qtr) 76.66 Bn
Debt/Equity (Qtr) 1.68
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About

Enbridge Inc., or ENB, is a prominent player in the energy sector, specializing in energy infrastructure. The company's operations span various segments, including Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. ENB's primary offerings include crude oil, other liquid hydrocarbons, natural gas, and renewable energy. The company's operations extend across Canada and the United States, with a significant presence in Europe as well. ENB's Liquids Pipelines segment is...

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Investment thesis

Bull case

  • Operating cash flow of 8.96B provides exceptional 41.17x coverage of minority interest expenses 217.52M, showing strong core operations.
  • Tangible assets of 130.80B provide robust 24.38x coverage of other current liabilities 5.36B, indicating strong asset backing.
  • Operating cash flow of 8.96B provides strong 7.57x coverage of inventory 1.18B, indicating efficient inventory management.
  • Strong tangible asset base of 130.80B provides 4.56x coverage of intangibles 28.67B, indicating robust asset quality.
  • Tangible assets of 130.80B provide robust 8.53x coverage of current liabilities 15.33B, showing strong asset backing.

Bear case

  • Operating cash flow of 8.96B barely covers its investment activities of (7.67B), with a coverage ratio of -1.17, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 8.96B provides thin coverage of dividend payments of (6B) with a -1.49 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 5.23B relative to inventory of 1.18B (4.42 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 2.27B provides weak coverage of capital expenditures of 6.69B, with a 0.34 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 10.60B show weak coverage of depreciation charges of 4.13B, with a 2.56 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Consolidation Items Breakdown of Revenue (2025)

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 112.63 Bn 21.82 2.37 76.66 Bn
2 EPD Enterprise Products Partners L.P. 81.14 Bn 17.33 2.56 33.58 Bn
3 TRP Tc Energy Corp 64.68 Bn 26.06 5.82 43.86 Bn
4 MPLX Mplx Lp 58.19 Bn 14.78 4.97 25.92 Bn
5 KMI Kinder Morgan, Inc. 56.67 Bn 46.57 3.70 32.00 Bn
6 WMB Williams Companies, Inc. 54.06 Bn -94.68 7.35 27.99 Bn
7 LNG Cheniere Energy, Inc. 49.66 Bn -50.93 183.24 25.19 Bn
8 TRGP Targa Resources Corp. 48.94 Bn 0.00 10.77 17.43 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.86 3.63
EV to Cash from Ops. EV/CFO 15.38 38.33
EV to Debt EV to Debt 1.80 -74.71
EV to EBIT EV/EBIT 13.00 18.29
EV to EBITDA EV/EBITDA 11.35 7.00
EV to Free Cash Flow [EV/FCF] EV/FCF 60.77 63.00
EV to Market Cap EV to Market Cap 1.22 2.28
EV to Revenue EV/Rev 2.89 9.80
Price to Book Value [P/B] P/B 2.48 51.38
Price to Earnings [P/E] P/E 21.82 69.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.60 -3.69
Dividend Payout Ratio % Div Payout % (Qtr) 86.20 71.20
Dividend per Basic Share Div per Share (Qtr) 2.03 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 142.87 33.21
Interest Coverage Int. cover (Qtr) 2.89 5.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -39.01 -6.96
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -34.72 16,425.73
Dividend Growth (1y) % Div 1y % (Qtr) -24.14 -2.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.45 -0.02
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 17.90 -3.25
EBIT Growth (1y) % EBIT 1y % (Qtr) 32.37 -7.01
EBT Growth (1y) % EBT 1y % (Qtr) 40.39 -231.64
EPS Growth (1y) % EPS 1y % (Qtr) 45.09 -42.37
FCF Growth (1y) % FCF 1y % (Qtr) -42.44 -2.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.83 1.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.22 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.39 0.21
Cash Ratio Cash Ratio (Qtr) 0.06 0.91
Current Ratio Curr Ratio (Qtr) 0.63 1.78
Debt to Equity Ratio Debt/Equity (Qtr) 1.68 1.13
Interest Cover Ratio Int Coverage (Qtr) 2.89 5.29
Times Interest Earned Times Interest Earned (Qtr) 2.89 5.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 31.00 35.43
EBIT Margin % EBIT Margin % (Qtr) 30.51 27.71
EBT Margin % EBT Margin % (Qtr) 14.56 17.46
Gross Margin % Gross Margin % (Qtr) 41.70 48.73
Net Profit Margin % Net Margin % (Qtr) 10.80 15.45