Enbridge Inc

ENB

Pipe Lines (No Natural Gas)

Mkt Cap

$70.27B

PE

12.04

Debt

$86.52B

Cash

$5.985B

EV

$150.8B

FCF

$9.547B

Market Cap

$70.27B

P/E Ratio

12.04

Debt

$86.52B

Cash

$5.985B

EV

$150.8B

FCF

$9.547B

Charts data: {"Earnings":[{"time":"2014-12-30","value":1154000000},{"time":"2015-12-30","value":-159000000},{"time":"2016-12-30","value":1776000000},{"time":"2017-12-30","value":2529000000},{"time":"2018-12-30","value":2515000000},{"time":"2019-12-30","value":5322000000},{"time":"2020-12-30","value":2983000000},{"time":"2021-12-30","value":5816000000},{"time":"2022-12-30","value":2589000000},{"time":"2023-12-30","value":5839000000}],"Sales":[{"time":"2014-12-30","value":37641000000},{"time":"2015-12-30","value":33794000000},{"time":"2016-12-30","value":34560000000},{"time":"2017-12-30","value":44378000000},{"time":"2018-12-30","value":46378000000},{"time":"2019-12-30","value":50069000000},{"time":"2020-12-30","value":39087000000},{"time":"2021-12-30","value":47071000000},{"time":"2022-12-30","value":53309000000},{"time":"2023-12-30","value":43649000000}],"Net Margins":[{"time":"2014-12-30","value":0.030658059031375362},{"time":"2015-12-30","value":-0.0047049772148902175},{"time":"2016-12-30","value":0.05138888888888889},{"time":"2017-12-30","value":0.05698769660642661},{"time":"2018-12-30","value":0.054228297899866315},{"time":"2019-12-30","value":0.10629331522498951},{"time":"2020-12-30","value":0.07631693401898329},{"time":"2021-12-30","value":0.12355802935990312},{"time":"2022-12-30","value":0.04856590819561425},{"time":"2023-12-30","value":0.13377167861806685}],"Assets":[{"time":"2014-12-30","value":72857000000},{"time":"2015-12-30","value":84664000000},{"time":"2016-12-30","value":85832000000},{"time":"2017-12-30","value":162093000000},{"time":"2018-12-30","value":166905000000},{"time":"2019-12-30","value":163269000000},{"time":"2020-12-30","value":160276000000},{"time":"2021-12-30","value":168864000000},{"time":"2022-12-30","value":179608000000},{"time":"2023-12-30","value":180317000000}],"Stockholders Equity":[{"time":"2014-12-30","value":18801000000},{"time":"2015-12-30","value":20198000000},{"time":"2016-12-30","value":21963000000},{"time":"2017-12-30","value":65732000000},{"time":"2018-12-30","value":73435000000},{"time":"2019-12-30","value":69407000000},{"time":"2020-12-30","value":64363000000},{"time":"2021-12-30","value":63368000000},{"time":"2022-12-30","value":63398000000},{"time":"2023-12-30","value":64483000000}],"ROE":[{"time":"2014-12-30","value":0.061379713845008246},{"time":"2015-12-30","value":-0.007872066541241706},{"time":"2016-12-30","value":0.0808632700450758},{"time":"2017-12-30","value":0.03847441124566421},{"time":"2018-12-30","value":0.03424797439912848},{"time":"2019-12-30","value":0.07667814485570619},{"time":"2020-12-30","value":0.04634650342588133},{"time":"2021-12-30","value":0.09178134073980558},{"time":"2022-12-30","value":0.040837250386447525},{"time":"2023-12-30","value":0.09055099793744087}],"ROA":[{"time":"2014-12-30","value":0.04392165474834264},{"time":"2015-12-30","value":0.02199281867145422},{"time":"2016-12-30","value":0.030070370025165438},{"time":"2017-12-30","value":0.009691966957240596},{"time":"2018-12-30","value":0.028854737725053176},{"time":"2019-12-30","value":0.05059135537058474},{"time":"2020-12-30","value":0.04964561132047218},{"time":"2021-12-30","value":0.04622062725033163},{"time":"2022-12-30","value":0.028829450803973096},{"time":"2023-12-30","value":0.04797661895439698}]}

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.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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9/30/22
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6/30/22
10-Q
3/31/22
10-K
12/31/21
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9/30/21
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6/30/21
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3/31/21
10-K
12/31/20
10-Q
9/30/20
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6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Enbridge Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$9.547B	$12.27B	$15.46B	$19.06B	$23.01B	$27.17B	$31.38B	$35.41B	$39.04B	$42.01B	$44.11B	$441.1B
DCF		$10.67B	$11.69B	$12.53B	$13.16B	$13.51B	$13.57B	$13.31B	$12.76B	$11.94B	$10.9B	$109B
Value	$233.1B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 21%

Earnings Stability 24%

Competitiveness and MOAT

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 Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-0.47%	5.1%	5.7%	5.4%	11%	7.6%	12%	4.9%	13%	13%
ROA	2.2%	3%	0.97%	2.9%	5.1%	5%	4.6%	2.9%	4.8%	4.8%
ROE	-0.79%	8.1%	3.8%	3.4%	7.7%	4.6%	9.2%	4.1%	9.1%	9.1%

What is the average Net Margin?

The average Net Margin over the past 5 years is +9.05%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.78%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.2%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.08%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +6.34%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.63%.

Safety & Stabiliy

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 company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	540.96	-39.27	18.17	17.61	15.61	55.61	12.88	9.06	9.06
Debt Equity	2.06	2.04	1.02	0.91	0.99	1.06	1.26	1.34	1.34	1.34
MIN
Graham Stability	-	-	100%	100%	100%	86%	100%	55%	100%	55%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 9.06.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.56.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.55.

Growth

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.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	3.4%	-1.2%	3.7%	-18%	-0.68%
Net Income	19%	18%	25%	130%	4.4%
Stockholders Equity	17%	-2.6%	0.062%	1.7%	-7.8%
FCF	97%	21%	30%	45%	42%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -1.21%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.68%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +18.35%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +4.39%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -2.57%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -7.83%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +20.9%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +42.44%.