Pipe Lines (No Natural Gas)
Enbridge Inc., together with its subsidiaries, 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 the natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, waste heat recovery, and transmission assets in North America. The Energy Services segment provides physical commodity marketing and logistical services to refiners, producers, and other customers 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.
Discounted Cash Flow Valuation of Enbridge Inc
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +7.77%.
The trend of Net Margin over the past 5 years is +0.39%.
The average ROA over the past 5 years is +3.56%.
The trend of ROA over the past 5 years is +0.42%.
The average ROE over the past 5 years is +5.47%.
The trend of ROE over the past 5 years is +0.44%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 9.00.
The trend of Debt/FCF over the past 5 years is 10.60.
Graham’s Stability measure stands at 0.55.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +3.74%.
The trend of Revenue growth rate over the past 5 years is +0.31%.
The Earnings CAGR over the past 5 years is +0.47%.
The trend of Earnings growth rate over the past 5 years is -18.66%.
The Equity CAGR over the past 5 years is -0.72%.
The trend of Equity growth rate over the past 5 years is -4.88%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is +97.71%.