Enbridge (ENB) AI Stock Analysis

• Market Cap: $141.76B
• Dividend Yield: 5.81%
• Average Volume (3M): 8.13M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.66
• Revenue Growth: 48.78%
• EPS Growth: 9.69%
• Country: CA
• Employees: 14,500
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.65
• Shares Outstanding: 2,180,515,000
• 10 Day Avg. Volume: 10,894,020
• 30 Day Avg. Volume: 8,126,698
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 3.78
• Enterprise Value/Gross Profit: 11.61
• Enterprise Value/Ebitda: 12.76
• 1Y Price Target: $72.72
• Price Target Upside: 12.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: C$72.00 ▲(11.73% Upside)

Enbridge's overall stock score reflects strong financial performance and positive earnings call outcomes, highlighting record-breaking EBITDA and strategic investments. Technical analysis supports a bullish trend, though valuation concerns exist with a high P/E ratio. The company's attractive dividend yield and strategic positioning in the energy sector bolster its investment appeal.

Positive Factors

Financial Performance

ENB beat consensus EBITDA estimates by 2.5%.

Growth Potential

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

Negative Factors

Market Performance

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.

Valuation Concerns

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

Enbridge Business Overview & Revenue Model

Company Description

Enbridge 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 generates revenue primarily through the transportation and distribution of energy products. Its Liquids Pipelines segment is a major revenue driver, earning income through tolls charged for transporting crude oil and liquids through its vast pipeline network. The Gas Transmission and Midstream segment contributes significantly by providing services related to the transportation of natural gas and processing, with revenue derived from fees for transporting gas and processing services. Additionally, the Gas Distribution and Storage segment earns income from residential and commercial customers through utility billings for natural gas delivery. Enbridge's Renewable Power Generation segment adds to its revenue by selling electricity generated from its wind and solar facilities. The company also engages in long-term contracts and strategic partnerships, ensuring stable cash flows and growth opportunities, while its focus on sustainable energy solutions aligns with increasing market demand for renewables.

Enbridge Financial Statement Overview

Summary

Enbridge demonstrates solid revenue growth and profitability, with stable margins and effective equity utilization. However, high leverage and declining free cash flow growth present potential risks. Overall, the financial health is strong, but attention to debt management and cash flow sustainability is advised.

Income Statement

Enbridge's income statement shows a strong revenue growth rate of 5.8% TTM, indicating a positive trajectory. The gross profit margin is healthy at 32.5%, although it has slightly decreased from previous years. The net profit margin remains stable at 10.3%, reflecting consistent profitability. However, the EBIT and EBITDA margins have slightly declined, suggesting potential pressure on operating efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.54, indicating significant leverage, which could pose risks if interest rates rise. However, the return on equity is robust at 10%, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by 7.4% TTM, which is a concern. The operating cash flow to net income ratio is strong at 0.87, showing good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, indicating potential challenges in maintaining free cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.63B	53.59B	42.89B	53.45B	46.80B	38.88B
Gross Profit	21.06B	19.41B	17.00B	16.64B	14.14B	14.29B
EBITDA	19.15B	16.95B	16.31B	9.85B	12.28B	9.33B
Net Income	6.63B	5.44B	6.19B	3.00B	6.19B	3.36B
Balance Sheet
Total Assets	211.59B	218.97B	180.32B	179.61B	168.86B	160.28B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.80B	5.90B	861.00M	286.00M	452.00M
Total Debt	101.05B	101.67B	81.20B	80.98B	75.64B	66.90B
Total Liabilities	143.23B	150.08B	115.83B	116.21B	105.50B	95.91B
Stockholders Equity	65.45B	65.90B	61.45B	59.89B	60.83B	61.37B
Cash Flow
Free Cash Flow	4.88B	5.67B	9.32B	6.41B	1.16B	4.16B
Operating Cash Flow	12.93B	12.60B	14.20B	11.23B	9.26B	9.78B
Investing Cash Flow	-13.92B	-20.36B	-6.04B	-5.27B	-11.18B	-5.18B
Financing Cash Flow	-1.41B	3.54B	-2.86B	-5.43B	1.22B	-4.77B

Enbridge Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENB, the sentiment is Positive. The current price of 64.44 is above the 20-day moving average (MA) of 62.74, above the 50-day MA of 61.62, and above the 200-day MA of 60.15, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 63.25 is Neutral, neither overbought nor oversold. The STOCH value of 48.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ENB.

Enbridge Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENB	74 Outperform	$141.76B	22.86	9.76%	5.81%	48.78%	9.69%
Sector *	65 Neutral	$14.85B	7.05	2.76%	5.52%	4.66%	-61.61%
PBA	―	$21.31B	17.26	10.69%	5.46%	―	―
TRP	―	$53.08B	17.42	15.25%	4.95%	―	―
GBNXF	―	$3.05B	26.64	17.22%	6.47%	―	―
ATGFF	―	$9.04B	16.34	9.15%	2.93%	―	―
KEY	80 Outperform	C$10.10B	19.04	18.92%	4.72%	1.57%	55.82%

Enbridge Corporate Events

Enbridge Reports Record Q2 EBITDA and Announces Strategic Investments

Enbridge reported a record second quarter EBITDA and reaffirmed its financial guidance for 2025, highlighting strong performance across its business segments. The company announced several strategic investments, including the Clear Fork Solar project and expansions in its pipeline and storage facilities, aimed at meeting growing industrial and power demand. These moves underscore Enbridge’s commitment to leveraging its scale and diversification to deliver steady returns and capitalize on rising energy demand, positioning it favorably in the market.

The most recent analyst rating on (TSE:ENB) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Enbridge stock, see the TSE:ENB Stock Forecast page.

Enbridge Inc. Declares Consistent Quarterly Dividends

Enbridge Inc. has announced the declaration of quarterly dividends for its common and preferred shares, with the common share dividend set at $0.9425, consistent with the previous quarter. This announcement underscores Enbridge’s commitment to providing consistent returns to its shareholders, reflecting its stable financial position and ongoing investment in energy infrastructure.

The most recent analyst rating on (TSE:ENB) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Enbridge stock, see the TSE:ENB Stock Forecast page.