Enbridge Inc (NYSE: ENB)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0000895728
Market Cap 100.05 Bn
P/B 2.12
P/E 24.60
P/S 2.15
ROIC (Qtr) 6.25
Div Yield % 5.92
Rev 1y % (Qtr) -3.06
Total Debt (Qtr) 75.15 Bn
Debt/Equity (Qtr) 1.59

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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Price action

Investment thesis

Bull case

  • Operating cash flow of 9.29B provides exceptional 51.28x coverage of minority interest expenses 181.16M, showing strong core operations.
  • Tangible assets of 128.28B provide robust 32.81x coverage of other current liabilities 3.91B, indicating strong asset backing.
  • Operating cash flow of 9.29B provides solid 0.85x coverage of current liabilities 10.90B, showing strong operational health.
  • Operating cash flow of 9.29B provides strong 6.73x coverage of inventory 1.38B, indicating efficient inventory management.
  • Operating cash flow of 9.29B provides strong 2.10x coverage of operating expenses 4.42B, showing operational efficiency.

Bear case

  • Operating cash flow of 9.29B barely covers its investment activities of (8.43B), with a coverage ratio of -1.10, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 9.29B provides thin coverage of dividend payments of (5.91B) with a -1.57 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 1.09B provide limited coverage of acquisition spending of (294.93M), which is -3.71x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 4.31B relative to inventory of 1.38B (3.12 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 2.94B provides weak coverage of capital expenditures of 6.35B, with a 0.46 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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 100.05 Bn 24.60 2.15 75.15 Bn
2 WMB Williams Companies, Inc. 73.60 Bn 31.09 6.40 27.99 Bn
3 EPD Enterprise Products Partners L.P. 69.94 Bn 12.09 1.32 33.58 Bn
4 KMI Kinder Morgan, Inc. 60.62 Bn 22.23 3.69 32.58 Bn
5 ET Energy Transfer LP 58.05 Bn 13.46 0.73 63.97 Bn
6 TRP Tc Energy Corp 55.97 Bn 22.78 5.27 44.47 Bn
7 MPLX Mplx Lp 54.03 Bn 11.23 4.22 25.92 Bn
8 OKE Oneok Inc /New/ 44.55 Bn 13.34 1.41 33.73 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.78 3.39
EV to Cash from Ops. EV/CFO 13.19 7.77
EV to Debt EV to Debt 1.63 -68.56
EV to EBIT EV/EBIT 13.18 12.77
EV to EBITDA EV/EBITDA 10.40 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF 41.71 13.20
EV to Market Cap EV to Market Cap 1.22 2.49
EV to Revenue EV/Rev 2.63 4.48
Price to Book Value [P/B] P/B 2.12 94.01
Price to Earnings [P/E] P/E 24.60 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.47 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 145.70 72.05
Dividend per Basic Share Div per Share (Qtr) 2.70 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 145.40 32.66
Interest Coverage Int. cover (Qtr) 2.62 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -50.29 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -25.84 16,113.89
Dividend Growth (1y) % Div 1y % (Qtr) 1.54 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -4.10 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 14.49 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) -3.98 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) -10.77 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) -14.19 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) -42.93 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.61 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.21 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.39 0.21
Cash Ratio Cash Ratio (Qtr) 0.10 0.81
Current Ratio Curr Ratio (Qtr) 0.80 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 1.59 1.11
Interest Cover Ratio Int Coverage (Qtr) 2.62 5.11
Times Interest Earned Times Interest Earned (Qtr) 2.62 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.70 35.86
EBIT Margin % EBIT Margin % (Qtr) 27.57 27.76
EBT Margin % EBT Margin % (Qtr) 12.35 17.28
Gross Margin % Gross Margin % (Qtr) 41.60 48.56
Net Profit Margin % Net Margin % (Qtr) 8.70 15.36