Enbridge (ENB) AI Stock Analysis

• Market Cap: $135.24B
• Dividend Yield: 6.02%
• Average Volume (3M): 6.33M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.70
• Revenue Growth: 43.97%
• EPS Growth: 2.65%
• Country: CA
• Employees: 14,500
• Sector: Energy
• Sector Strength: 50
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.03
• Shares Outstanding: 2,180,284,400
• 10 Day Avg. Volume: 7,062,040
• 30 Day Avg. Volume: 6,333,843
• PEG Ratio: 1.36
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $69.80
• Price Target Upside: 13.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: C$71.00 ▲(15.13%Upside)

Enbridge's strong financial results and strategic growth initiatives are key strengths, supported by its high dividend yield. Regulatory challenges and a higher P/E ratio are risk factors to monitor.

Positive Factors

Financial Performance

ENB's Q1 results demonstrate solid momentum, with Mainline reaching record levels and high utilization in gas pipeline infrastructure.

Financial Position

Could self-fund $9-10B of annual capex, indicating a strong financial position for future investments.

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.

Market Sentiment

Cdn. energy sentiment has been negative of late on U.S. tariff uncertainty and ENB shares have outperformed YTD.

Stock Valuation

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. is a leading North American energy infrastructure company based in Canada. It primarily operates in the sectors of energy transportation, distribution, and generation. The company's core products and services include the transportation of crude oil, natural gas, and natural gas liquids through its extensive pipeline network, as well as natural gas utility operations and renewable energy projects.

How the Company Makes Money

Enbridge makes money primarily through its extensive pipeline systems that transport crude oil, natural gas, and natural gas liquids across North America. Revenue is generated by charging fees for the transportation and storage of these energy commodities. The company also earns income from its natural gas utility operations, which involve the distribution of natural gas to residential, commercial, and industrial customers. Additionally, Enbridge has investments in renewable energy projects, such as wind and solar power generation, which contribute to its revenue streams. The company benefits from long-term contracts and regulated rates, providing stable and predictable earnings. Strategic partnerships and joint ventures with other energy companies enhance its operational capabilities and expand its market reach.

Enbridge Financial Statement Overview

Summary

Enbridge shows strong financial health with solid revenue growth, profitability, and efficient cash flow management. Slight pressure on free cash flow is a minor concern.

Income Statement

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

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

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.

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	17.00B	16.40B	14.52B	14.71B
EBITDA	16.87B	16.31B	9.85B	12.28B	9.33B
Net Income	5.44B	6.19B	3.00B	6.19B	3.36B
Balance Sheet
Total Assets	218.97B	180.32B	179.61B	168.86B	160.28B
Cash, Cash Equivalents and Short-Term Investments	1.80B	5.90B	861.00M	286.00M	452.00M
Total Debt	101.67B	81.20B	80.98B	75.64B	66.90B
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

• Technical Analysis Sentiment: Positive
• Last Price: 61.67
• 50DMA: Negative
• 100DMA: Negative
• 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 61.67 is above the 20-day moving average (MA) of 61.29, below the 50-day MA of 62.26, and above the 200-day MA of 60.28, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 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
KEY	80 Outperform	C$9.87B	18.07	19.55%	4.83%	8.00%	52.89%
ENB	78 Outperform	$135.24B	22.87	9.51%	6.02%	43.97%	2.65%
ALA	75 Outperform	$12.03B	21.34	6.56%	3.05%	2.27%	-9.19%
PPL	75 Outperform	$29.28B	16.43	11.55%	5.52%	-5.42%	-1.70%
GEI	72 Outperform	$4.05B	24.92	17.23%	6.79%	-5.85%	-8.05%
TRP	64 Neutral	$67.28B	15.38	15.89%	5.38%	0.72%	60.40%
Sector *	44 Neutral	AU$1.47B	-6.98	-23.02%	8.00%	5.33%	-26.92%

Enbridge Corporate Events

Enbridge Inc. Declares Consistent Quarterly Dividends

Enbridge Inc. has announced the declaration of a quarterly dividend of $0.9425 per common share, consistent with its previous dividend, payable on June 1, 2025. The announcement includes dividends for various series of preferred shares, reflecting the company’s stable financial performance and commitment to returning value to shareholders.