Now trading at a price of $35.6, Enbridge has moved -0.2% so far today.
Over the last year, Enbridge logged a -2.4% change, with its stock price reaching a high of $40.3 and a low of $31.03. Over the same period, the stock underperformed the S&P 500 index by -33.9%. AThe company's 50-day average price was $35.41. Enbridge Inc., together with its subsidiaries, operates as an energy infrastructure company. Based in Calgary, Canada, the Large-Cap Energy company has 11,500 full time employees. Enbridge has not offered a regular dividend during the last year.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $46,378 | $50,069 | $39,087 | $47,071 | $53,309 | $45,775 |
| Operating Margins | 10% | 16% | 20% | 17% | 10% | 14% |
| Net Margins | 6% | 11% | 9% | 13% | 6% | 7% |
| Net Income (M) | $2,882 | $5,705 | $3,363 | $6,189 | $3,003 | $3,390 |
| Net Interest Expense (M) | $2,703 | $2,663 | $2,790 | $2,655 | $3,179 | $3,572 |
| Depreciation & Amort. (M) | $3,246 | $3,391 | $3,712 | $3,852 | $4,317 | $4,569 |
| Diluted Shares (M) | 1,727 | 2,020 | 2,021 | 2,025 | 2,029 | 2,049 |
| Earnings Per Share | $1.46 | $2.63 | $1.48 | $2.87 | $1.28 | $1.49 |
| Avg. Price | $24.0 | $27.59 | $26.38 | $33.77 | $40.34 | $35.67 |
| P/E Ratio | 16.44 | 10.45 | 17.82 | 11.77 | 31.52 | 23.78 |
| CAPEX (M) | $6,806 | $4,193 | $5,405 | $7,818 | $4,647 | $4,727 |
| EV / EBITDA | 12.87 | 10.23 | 10.18 | 12.2 | 16.84 | 12.77 |
| Total Debt (M) | $63,586 | $64,065 | $65,776 | $74,125 | $78,984 | $68,793 |
| Net Debt / EBITDA | 7.82 | 5.44 | 5.6 | 6.33 | 8.23 | 6.11 |
| Current Ratio | 0.58 | 0.55 | 0.53 | 0.49 | 0.6 | 0.67 |
Trades Around Its Graham Number but Has an Elevated P/E Ratio:
Enbridge has a trailing twelve month P/E ratio of 16.9, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $2.17, the company has a forward P/E ratio of 16.3. The 5.8% compound average growth rate of Enbridge's historical and projected earnings per share yields a PEG ratio of 2.89. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Enbridge in terms of its equity because its P/B ratio is 1.38 while the sector average is 1.78. The company's shares are currently trading -8.3% below their Graham number. In conclusion, Enbridge's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Enbridge Has an Average Rating of Hold:
The 9 analysts following Enbridge have set target prices ranging from $35.12 to $43.07 per share, for an average of $39.67 with a hold rating. The company is trading -10.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Enbridge has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 53.8% of the company's shares, and the insider ownership rate stands at 0.1%, suggesting a small amount of insider investors. The largest shareholder is Royal Bank of Canada, whose 7% stake in the company is worth $4,986,713,431.
