Enbridge Inc logged a -1.1% change during today's afternoon session, and is now trading at a price of $46.98 per share.
Enbridge Inc returned gains of 24.5% last year, with its stock price reaching a high of $48.21 and a low of $38.49. Over the same period, the stock outperformed the S&P 500 index by 8.0%. More recently, the company's 50-day average price was $45.61. Enbridge Inc., together with its subsidiaries, operates as an energy infrastructure company. Based in Calgary, Canada, the Large-Cap Energy company has 14,500 full time employees. Enbridge Inc has offered a 7.8% dividend yield over the last 12 months.
The Firm Has a Highly Leveraged Balance Sheet:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $50,069 | $39,087 | $47,071 | $53,309 | $43,649 | $53,473 |
| Operating Margins | 16% | 20% | 17% | 10% | 20% | 18% |
| Net Margins | 11% | 9% | 13% | 6% | 14% | 10% |
| Net Income (M) | $5,705 | $3,363 | $6,189 | $3,003 | $6,191 | $5,441 |
| Net Interest Expense (M) | $2,663 | $2,790 | $2,655 | $3,179 | $3,812 | $4,419 |
| Depreciation & Amort. (M) | $3,391 | $3,712 | $3,852 | $4,317 | $4,613 | $4,600 |
| Diluted Shares (M) | 2,020 | 2,021 | 2,025 | 2,029 | 2,058 | 2,158 |
| Earnings Per Share | $2.63 | $1.48 | $2.87 | $1.28 | $2.84 | $2.34 |
| EPS Growth | n/a | -43.73% | 93.92% | -55.4% | 121.87% | -17.61% |
| Avg. Price | $27.59 | $26.38 | $33.77 | $40.34 | $36.02 | $47.03 |
| P/E Ratio | 10.45 | 17.82 | 11.77 | 31.52 | 12.68 | 20.1 |
| Free Cash Flow (M) | $5,205 | $4,376 | $1,438 | $6,583 | $9,547 | $5,889 |
| CAPEX (M) | $4,193 | $5,405 | $7,818 | $4,647 | $4,654 | $6,711 |
| EV / EBITDA | 10.23 | 10.18 | 12.2 | 16.84 | 11.15 | 14.58 |
| Total Debt (M) | $64,065 | $65,776 | $74,125 | $78,984 | $80,799 | $109,548 |
| Net Debt / EBITDA | 5.44 | 5.6 | 6.33 | 8.23 | 5.65 | 7.56 |
| Current Ratio | 0.55 | 0.53 | 0.49 | 0.6 | 0.83 | 0.55 |
Enbridge Inc has weak operating margins with a stable trend, not enough current assets to cover current liabilities because its current ratio is 0.55, and a highly leveraged balance sheet. On the other hand, the company benefits from growing revenues and increasing reinvestment in the business and generally positive cash flows. Furthermore, Enbridge Inc has flat EPS growth.
Its Shares Are Fairly Valued but Has an Elevated P/E Ratio:
Enbridge Inc has a trailing twelve month P/E ratio of 22.1, compared to an average of 18.35 for the Energy sector. Based on its EPS guidance of $2.14, the company has a forward P/E ratio of 21.3. The -2.9% compound average growth rate of Enbridge Inc's historical and projected earnings per share yields a PEG ratio of -7.63. This indicates that its shares are overvalued.The market is placing a fair value on Enbridge Inc's equity, since its P/B ratio of 1.75 is comparable to its sector average of 1.6. The company's shares are currently trading 17.2% below their Graham number. In conclusion, Enbridge Inc'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 Inc Has an Analyst Consensus of Little Upside Potential:
The 4 analysts following Enbridge Inc have set target prices ranging from $42.95218 to $48.80962 per share, for an average of $45.96 with a buy rating. The company is trading 2.2% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Enbridge Inc has a very low short interest because 1.4% of the company's shares are sold short. Institutions own 56.3% of the company's shares, and the insider ownership rate stands at 0.18%, suggesting a small amount of insider investors. The largest shareholder is Royal Bank of Canada, whose 6% stake in the company is worth $6,370,227,809.
