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Enbridge Inc (TSE:ENB)
TSX:ENB
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Enbridge
(TSX:ENB)73Outperform
Positive Factors
Financial Position
Could self-fund $9-10B of annual capex, indicating a strong financial position for future investments.
Future Growth
ENB’s Investor Day was successful in reaffirming a highly resilient business model while providing improved confidence in future growth.
Negative Factors
Stock Valuation
The shares are believed to be fairly valued at current levels, suggesting limited immediate upside in stock price.
Enbridge (ENB) vs. S&P 500 (SPY)
Market Cap
$131.05B
Dividend Yield6.21%
Average Volume (3M)11.90M
Price to Earnings (P/E)25.7
Beta (1Y)0.82
Revenue Growth24.95%
EPS Growth-17.19%
CountryCA
Employees11,500
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)2.34
Shares Outstanding2,179,049,600
10 Day Avg. Volume11,279,976
30 Day Avg. Volume11,897,369
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)N/A
Price to Sales (P/S)2.52
Price to Cash Flow (P/CF)9.20
P/FCF Ratio5.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$67.16Price Target Upside11.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Enbridge Business Overview & Revenue Model
Company DescriptionEnbridge Inc. is a leading North American energy infrastructure company headquartered in Calgary, Alberta, Canada. Operating primarily in Canada and the United States, Enbridge specializes in the transportation, distribution, and generation of energy. The company's core services include the operation of the world's longest crude oil and liquids transportation system, a significant natural gas transmission and midstream network, and a growing renewable power generation portfolio. Enbridge plays a crucial role in delivering energy reliably and safely to millions of customers.
How the Company Makes MoneyEnbridge generates revenue through several key streams. The primary source of income is its Liquids Pipelines segment, which transports crude oil and other liquid hydrocarbons across North America; the company charges tolls or tariffs for these transportation services. Another significant revenue stream is the Gas Transmission and Midstream segment, where Enbridge operates a network of natural gas pipelines, storage, and midstream facilities, earning income through long-term contracts and regulated rates. The Gas Distribution and Storage segment contributes to earnings by distributing natural gas to residential, commercial, and industrial customers, predominantly in Ontario, Canada. Additionally, Enbridge is expanding its presence in renewable energy, with investments in wind, solar, and geothermal projects, generating income from the sale of electricity. The company's financial performance is also supported by strategic partnerships with other energy companies and favorable regulatory environments that facilitate stable cash flow.
Enbridge Financial Statement Overview
Summary
Enbridge shows strong revenue growth and profitability, typical of a well-managed company in the fossil fuels sector. However, concerns arise from high leverage and declining free cash flow which could impact future financial flexibility.Income Statement
Enbridge's income statement reflects strong profitability with a consistent gross profit margin around 36% and a healthy net profit margin of approximately 10% in TTM. The revenue growth rate from 2023 to TTM shows a significant increase of 22.28%, indicating robust revenue expansion. The EBIT and EBITDA margins are solid, demonstrating efficient operational management. However, the net income shows a slight decline from the previous year, which could be a concern if it continues.78
Positive
Balance Sheet
The balance sheet shows a relatively high debt-to-equity ratio of 1.54 in TTM, indicating significant leverage, which is typical in the fossil fuels industry but poses financial risk. The return on equity (ROE) is strong at 8.26%, demonstrating efficient use of equity to generate profit. The equity ratio is about 30.08%, reflecting a stable capital structure but highlighting the high leverage level.72
Positive
Cash Flow
The cash flow analysis reveals a decline in free cash flow from the previous year, with a negative growth rate. The operating cash flow to net income ratio of 2.40 in TTM indicates solid cash generation relative to net earnings. However, the free cash flow to net income ratio has decreased, suggesting potential pressures on liquidity if capital expenditures remain high.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 53.47B | 43.65B | 53.31B | 47.07B | 39.09B | Gross Profit |
| 19.27B | 17.67B | 16.40B | 14.52B | 14.71B | EBIT |
| 9.65B | 8.65B | 9.70B | 7.80B | 7.96B | EBITDA |
| 16.87B | 16.31B | 9.85B | 12.28B | 9.33B | Net Income Common Stockholders |
| 5.44B | 6.19B | 3.00B | 6.19B | 3.36B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.80B | 5.90B | 861.00M | 286.00M | 452.00M | Total Assets |
| 218.97B | 180.32B | 179.61B | 168.86B | 160.28B | Total Debt |
| 101.67B | 81.20B | 80.98B | 75.64B | 66.90B | Net Debt |
| 99.87B | 75.30B | 80.12B | 75.35B | 66.44B | Total Liabilities |
| 150.08B | 115.83B | 116.21B | 105.50B | 95.91B | Stockholders Equity |
| 65.90B | 61.45B | 59.89B | 60.83B | 61.37B |
| Cash Flow | Free Cash Flow | |||
| 5.67B | 9.32B | 6.41B | 1.16B | 4.16B | Operating Cash Flow |
| 12.60B | 14.20B | 11.23B | 9.26B | 9.78B | Investing Cash Flow |
| -20.36B | -7.18B | -5.27B | -10.66B | -5.18B | Financing Cash Flow |
| 3.54B | -2.86B | -5.43B | 1.22B | -4.77B |
Enbridge Technical Analysis
Negative
60.14
Price Trends
61.56
Negative
59.51
Positive
54.55
Positive
Market Momentum
-0.39
Positive
42.98
Neutral
72.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENB, the sentiment is Negative. The current price of 60.14 is below the 20-day moving average (MA) of 61.34, below the 50-day MA of 61.56, and above the 200-day MA of 54.55, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 72.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ENB.
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 |
|---|---|---|---|---|---|---|---|
79 Outperform | C$9.26B | 19.03 | 17.19% | 4.92% | 2.89% | 14.76% | |
77 Outperform | $32.16B | 18.44 | 10.65% | 5.19% | -19.86% | 0.18% | |
73 Outperform | $131.05B | 25.68 | 8.26% | 6.21% | 24.95% | -17.19% | |
73 Outperform | $10.60B | 21.31 | 6.39% | 3.51% | -8.43% | -19.22% | |
67 Neutral | $67.75B | 14.73 | 17.03% | 6.03% | 5.31% | 61.02% | |
65 Neutral | $3.45B | 22.57 | 15.65% | 8.13% | 6.95% | -35.38% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
TSE:ENB
Enbridge
61.01
15.49
34.02%
TSE:TRP
TC Energy
65.20
18.36
39.20%
TSE:ALA
AltaGas
36.43
8.17
28.91%
TSE:GEI
Gibson Energy
21.14
-0.06
-0.30%
TSE:PPL
Pembina Pipeline
54.06
8.39
18.37%
TSE:KEY
Keyera Corp.
39.80
7.52
23.30%
Enbridge Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: -5.55% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with record financial results and strategic acquisitions. Enbridge shows robust growth across its business units, bolstered by increased dividends and successful capital recycling. Despite minor delays in regulatory approvals and potential tariff concerns, the overall sentiment remains positive, driven by significant achievements and a strong outlook.Highlights
Record EBITDA and DCF Growth
Enbridge delivered record EBITDA and DCF per share in 2024, with EBITDA increasing by 13% over 2023.
Dividend Increase
Enbridge increased its dividend for the 30th consecutive year, achieving a 37% total shareholder return in 2024.
Significant Acquisitions
Closed the acquisition of three premier U.S. natural gas utilities, creating the largest gas utility franchise in North America.
Organic Projects and Capital Recycling
Added over $8 billion of organic projects to the backlog and successfully recycled over $15 billion of assets since 2014.
Gas Transmission and Storage Growth
Sanctioned approximately $4 billion in new capital projects focused on U.S. Gulf Coast infrastructure with high utilization.
Strong Performance in Gas Distribution
Gas Distribution business now delivers over 9 Bcf per day to over 7 million customers, with new daily throughput records.
Renewables Expansion
Sanctioned approximately 1.2 net gigawatts of new solar projects with high-quality contracts, including a full service of Fox Squirrel facility.
Lowlights
Challenges with Regulatory Approvals
Delays in regulatory approvals for some projects, such as the offshore Calvados project now expected to enter service later than originally scheduled.
Potential Tariff Impacts
Concerns about potential tariffs on energy products affecting economic growth and energy demand, although considered not immediately material.
Company Guidance
During the Enbridge Inc. Fourth Quarter 2024 Financial Results Conference Call, Greg Ebel, President and CEO, highlighted several key metrics and achievements for the year. The company delivered record EBITDA and DCF per share, with a 13% increase in EBITDA over 2023. Enbridge raised its dividend for the 30th consecutive year and achieved a 37% total shareholder return. They closed acquisitions of three U.S. natural gas utilities, becoming North America's largest gas utility franchise, and announced strategic tuck-in acquisitions in the Permian and Gulf Coast regions. Enbridge added over $8 billion in organic projects to its backlog, with a focus on diversifying investments across its business units. The company maintained its leverage target of 4.5 to 5 times and reaffirmed its commitment to equity self-funding $8 to $9 billion in growth projects annually. The call emphasized Enbridge's stable business model, its long-standing track record of meeting financial guidance, and its strategic positioning to meet growing energy demands.Enbridge Corporate Events
Shareholder MeetingsFinancial Disclosures
Enbridge Files 2024 Financial Disclosures, Plans Virtual Shareholder Meeting
Neutral
Feb 14, 2025
Enbridge Inc. has filed its 2024 year-end financial disclosure documents with both U.S. and Canadian securities authorities, providing stakeholders with access to its consolidated financial statements and management’s discussion and analysis. The company is set to hold its annual shareholders’ meeting virtually on May 7, 2025. This filing underscores Enbridge’s commitment to transparency with its investors and stakeholders, and its ongoing efforts to maintain a strong operational and market position in the energy sector.
Business Operations and StrategyFinancial Disclosures
Enbridge Achieves Record 2024 Financial Results and Strategic Milestones
Positive
Feb 14, 2025
Enbridge reported record financial results for 2024, with full-year GAAP earnings of $5.1 billion and adjusted earnings of $6.0 billion. The company achieved its financial guidance for the 19th consecutive year, underscoring its operational stability. Enbridge also announced several strategic moves, including settlements with customers and a sale of minority interests, as well as new projects worth $8 billion, to enhance its service capabilities and shareholder value.
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.