Enbridge Inc. Fundamental Analysis
Enbridge Inc. (EBBGF) shows moderate financial fundamentals with a PE ratio of 10.52, profit margin of 9.64%, and ROE of 10.18%. The company generates $74.8B in annual revenue with strong year-over-year growth of 21.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EBBGF's fundamental strength across five key dimensions:
Efficiency Score
WeakEBBGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEBBGF trades at attractive valuation levels.
Growth Score
ExcellentEBBGF delivers strong and consistent growth momentum.
Financial Health Score
WeakEBBGF carries high financial risk with limited liquidity.
Profitability Score
WeakEBBGF struggles to sustain strong margins.
Key Financial Metrics
Is EBBGF Expensive or Cheap?
P/E Ratio
EBBGF trades at 10.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EBBGF's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values Enbridge Inc. at 1.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.54 times EBITDA. This is generally considered low.
How Well Does EBBGF Make Money?
Net Profit Margin
For every $100 in sales, Enbridge Inc. keeps $9.64 as profit after all expenses.
Operating Margin
Core operations generate 14.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.18 in profit for every $100 of shareholder equity.
ROA
Enbridge Inc. generates $3.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Enbridge Inc. produces operating cash flow of $14.00B, showing steady but balanced cash generation.
Free Cash Flow
Enbridge Inc. produces free cash flow of $2.52B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.15 in free cash annually.
FCF Yield
EBBGF converts 3.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How EBBGF Stacks Against Its Sector Peers
| Metric | EBBGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.52 | 20.85 | Better (Cheaper) |
| ROE | 10.18% | 1014.00% | Weak |
| Net Margin | 9.64% | -57829.00% (disorted) | Weak |
| Debt/Equity | 1.69 | -0.46 (disorted) | Distorted |
| Current Ratio | 0.81 | 4.93 | Weak Liquidity |
| ROA | 3.16% | -10983113.00% (disorted) | Weak |
EBBGF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Enbridge Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.22%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
106.40%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
22.69%
Industry Style: Cyclical, Value, Commodity
High Growth