Enbridge (ENB) AI Stock Analysis

8,336 Followers

Top Page

Positive Factors

Financial Performance

The results put 2024 DCF/share at $5.56, consistent with guidance of $5.40-5.80 mid-point, and adj. EBITDA of $18.6B, above top-end of $17.7-18.3B guidance.

Growth and Expansion

ENB is acquiring a 10% interest in the Matterhorn Express pipeline, which is expected to enhance growth potential.

Investor Confidence

ENB’s Investor Day was successful in reaffirming a highly resilient business model while providing improved confidence in future growth.

Negative Factors

Market Sentiment

Despite the solid quarter, unchanged 2025/near-term guidance, and positive comments on the call, ENB shares were the worst performer in our coverage universe erasing 4% and ~$5.7B of value.

Tax Impact

Higher cash taxes of ~$1B are expected due to lower bonus depreciation.

Valuation

Despite the strong performance and yield, shares are considered fairly valued at the current levels, implying limited upside.

Enbridge (ENB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$101.41B

Dividend Yield5.7%

Average Volume (3M)3.86M

Price to Earnings (P/E)23.9

Beta (1Y)0.29

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees14,500

SectorEnergy

Sector Strength44

IndustryOil & Gas Midstream

Share Statistics

EPS (TTM)0.74

Shares Outstanding2,180,284,400

10 Day Avg. Volume3,206,892

30 Day Avg. Volume3,862,478

Financial Highlights & Ratios

PEG Ratio1.38

Price to Book (P/B)2.00

Price to Sales (P/S)0.00

P/FCF Ratio26.24

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$51.11

Price Target Upside9.87% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering11

Enbridge Business Overview & Revenue Model

Company DescriptionEnbridge Inc. operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines, and gathering and processing facilities in Canada and the United States. The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution and energy transportation activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, and waste heat recovery facilities; and transmission assets in North America and Europe. The Energy Services segment provides energy marketing services to refiners, producers, and other customers; and physical commodity marketing and logistical services in Canada and the United States. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

How the Company Makes Money

Enbridge Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q1-2025)

% Change Since: 3.17%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Positive

Enbridge reported a strong first quarter with record financial results and significant growth initiatives across its business segments. The company successfully managed to navigate the challenging macroeconomic environment, reaffirming its financial guidance. However, seasonality, interest rates, and regulatory uncertainties present potential challenges for the remainder of the year.

Q1-2025 Updates

Positive Updates

Record Financial Performance

Enbridge delivered record EBITDA, DCF per share, and earnings per share in Q1 2025, driven by U.S. utilities acquired and strong volumes across the business.

Strong Liquids Pipeline Performance

Liquids delivered record volumes of almost 3.2 million barrels per day, with Mainline and Ingleside setting quarterly volume records.

Growth in Renewable Power

The Orange Grove Solar facility entered service on time and on budget, contributing to over 500 megawatts of solar expected to be placed into service this year.

Successful Acquisitions and Expansions

Enbridge acquired a 10% interest in the Matterhorn Express Pipeline and sanctioned the Traverse Pipeline, enhancing its Permian natural gas franchise.

Positive Outlook and Stable Guidance

The company reaffirmed its 2025 financial guidance, expecting to hit financial targets for the 20th consecutive year, with strong prospects for continued growth.

Negative Updates

Seasonality and Financial Considerations

Enbridge noted the impact of seasonality on its business, with Q2 expected to be weaker compared to Q1 and Q4, highlighting the challenges of managing quarterly earnings expectations.

Interest Rate and FX Headwinds

Higher U.S. interest rates and FX volatility present potential headwinds, although not anticipated to materially impact financial results.

Regulatory Challenges

Enbridge faces regulatory uncertainties, particularly in Ontario regarding cost of capital and jurisdiction competitiveness, impacting future capital allocation decisions.

Company Guidance

During the Enbridge First Quarter 2025 Financial Results Conference Call, the company reaffirmed its 2025 financial guidance, highlighting record achievements in EBITDA, DCF per share, and earnings per share. Enbridge committed to maintaining a debt-to-EBITDA metric between 4.5x to 5x and anticipated improvements throughout the year. Strategic growth was emphasized with $3 billion of accretive projects secured year-to-date, including the acquisition of a 10% interest in the Matterhorn Express Pipeline and the sanctioning of the Traverse Pipeline. The company also highlighted its diversified business model, with over 98% of EBITDA protected by regulated or take-or-pay frameworks, and a strong focus on capital allocation based on risk-adjusted returns and regulatory environments. Enbridge's expansion efforts in the renewable sector were noted with the Orange Grove Solar facility's timely and budgeted service commencement, and future growth announcements were anticipated in response to increasing natural gas demand and infrastructure needs.

Enbridge Financial Statement Overview

Summary

Enbridge's financial performance is strong, with robust revenue growth and profitability. The company has a balanced capital structure, though it faces slight pressure on free cash flow growth.

Income Statement

Very Positive

Enbridge's income statement shows solid performance with a strong gross profit margin of 33.85% and net profit margin of 10.33% for TTM. Revenue growth rate was robust at 13.92% compared to the previous year, indicating healthy top-line expansion. The EBIT margin stands at 17.53% and EBITDA margin at 30.73%, reflecting efficient operations and profitability.

Balance Sheet

Positive

The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of 1.51, which is typical for the industry. Return on equity is strong at 9.22%, showcasing effective use of equity. The equity ratio of 31.02% suggests a stable capital structure with a substantial equity base.

Cash Flow

Positive

Enbridge's cash flow statement reveals a healthy operating cash flow to net income ratio of 2.02, underscoring robust cash generation relative to earnings. However, the free cash flow declined slightly by 8.06%, which could signal increased capital expenditures. Free cash flow to net income ratio remains positive at 0.83, indicating solid cash flow management.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
60.90B	53.47B	43.65B	53.31B	47.07B	39.09B
	Gross Profit
20.61B	19.27B	17.67B	16.40B	14.52B	14.71B
	EBIT
10.67B	10.00B	8.65B	9.70B	7.80B	7.96B
	EBITDA
18.71B	16.87B	16.31B	9.85B	12.28B	9.33B
	Net Income Common Stockholders
6.29B	5.44B	6.19B	3.00B	6.19B	3.36B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.09B	1.80B	5.90B	861.00M	286.00M	452.00M
	Total Assets
220.04B	218.97B	180.32B	179.61B	168.86B	160.28B
	Total Debt
103.11B	101.67B	81.20B	80.98B	75.64B	66.90B
	Net Debt
101.03B	99.87B	75.30B	80.12B	75.35B	66.44B
	Total Liabilities
148.76B	150.08B	115.83B	116.21B	105.50B	95.91B
	Stockholders Equity
68.26B	65.90B	61.45B	59.89B	60.83B	61.37B
Cash Flow		Free Cash Flow
5.21B	5.67B	9.32B	6.41B	1.16B	4.16B
	Operating Cash Flow
12.70B	12.60B	14.20B	11.23B	9.26B	9.78B
	Investing Cash Flow
-14.70B	-20.36B	-7.18B	-5.27B	-10.66B	-5.18B
	Financing Cash Flow
2.71B	3.54B	-2.86B	-5.43B	1.22B	-4.77B

Enbridge Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENB		$101.41B	23.92	9.51%	5.70%	―	―
Sector *	57 Neutral	$7.23B	3.16	-4.49%	5.63%	0.82%	-49.15%
PBA		$21.85B	17.06	11.55%	5.28%	―	―
TRP		$52.73B	16.73	15.89%	5.10%	―	―
GBNXF		$2.80B	23.88	17.23%	6.98%	―	―
ATGFF		$8.34B	21.06	6.56%	3.12%	―	―
KEY	76 Outperform	C$9.58B	17.55	19.55%	4.92%	8.00%	52.89%

* Energy Sector Average

Performance Comparison

ENB

Enbridge

46.52

13.00

38.78%

PBA

Pembina Pipeline

37.56

2.14

6.04%

TRP

TC Energy

50.74

17.18

51.19%

GBNXF

Gibson Energy

17.10

1.41

8.99%

ATGFF

AltaGas

27.84

6.32

29.37%

TSE:KEY

Keyera Corp.

41.82

6.84

19.55%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.