Enbridge (ENB) AI Stock Analysis

• Market Cap: $136.62B
• Dividend Yield: 5.82%
• Average Volume (3M): 10.35M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.73
• Revenue Growth: 43.97%
• EPS Growth: 2.65%
• Country: CA
• Employees: 14,500
• Sector: Energy
• Sector Strength: 41
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.03
• Shares Outstanding: 2,180,284,400
• 10 Day Avg. Volume: 15,741,931
• 30 Day Avg. Volume: 10,348,296
• PEG Ratio: 1.38
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $67.00
• Price Target Upside: 6.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: C$72.00 ▲( 14.91% Upside)

Enbridge demonstrates strong financial health with substantial growth and robust earnings, supported by positive earnings call insights. Technical indicators and consistent dividend payments bolster confidence, though valuation concerns and regulatory challenges present risks. Overall, Enbridge's solid performance positions it well within the industry, meriting a strong score.

Positive Factors

Financial Performance

Strong Q1 results demonstrate solid momentum for Enbridge Inc, with Mainline achieving quarterly record levels and high utilization in gas pipeline infrastructure.

Growth Potential

ENB is acquiring a 10% interest in the Matterhorn Express pipeline, which is expected to enhance growth potential.

Long-term Growth

ENB’s Investor Day was successful in reaffirming a highly resilient business model while providing improved confidence in future growth.

Negative Factors

Regulatory Risks

Cdn. energy sentiment has been negative of late on U.S. tariff uncertainty and ENB shares have outperformed YTD (also to the market's surprise).

Share Performance

Despite the solid quarter, unchanged 2025/near-term guidance, and positive comments on the call, ENB shares were the worst performer in our coverage universe erasing 4% and ~$5.7B of value.

Valuation Concerns

Despite the strong performance and yield, shares are considered fairly valued at the current levels, implying limited upside.

Enbridge Business Overview & Revenue Model

Company Description

Enbridge Inc. is a multinational energy transportation company based in Calgary, Alberta, Canada. It primarily operates in the transportation and distribution of crude oil, natural gas, and other liquids, making it one of the largest energy infrastructure companies in North America. The company is also involved in renewable energy projects, including wind and solar power, and operates a major natural gas utility business in Canada.

How the Company Makes Money

Enbridge makes money primarily through its extensive network of pipelines that transport crude oil, natural gas, and natural gas liquids across Canada and the United States. The company's revenue model is largely based on fee-based contracts for the transportation of these energy products, which provide stable and predictable cash flows. Enbridge also generates revenue from its renewable energy projects and natural gas utility operations. Key revenue streams include tolls and tariffs charged to energy producers for using its pipeline infrastructure, as well as sales of natural gas and electricity to consumers. The company's earnings are bolstered by strategic partnerships and joint ventures with other energy companies, as well as regulatory frameworks that support infrastructure investments and operation.

Enbridge Financial Statement Overview

Summary

Enbridge's financial performance is strong, with robust revenue growth and profitability. The company has a balanced capital structure, though it faces slight pressure on free cash flow growth.

Income Statement

Enbridge's income statement shows solid performance with a strong gross profit margin of 33.85% and net profit margin of 10.33% for TTM. Revenue growth rate was robust at 13.92% compared to the previous year, indicating healthy top-line expansion. The EBIT margin stands at 17.53% and EBITDA margin at 30.73%, reflecting efficient operations and profitability.

Balance Sheet

The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of 1.51, which is typical for the industry. Return on equity is strong at 9.22%, showcasing effective use of equity. The equity ratio of 31.02% suggests a stable capital structure with a substantial equity base.

Cash Flow

Enbridge's cash flow statement reveals a healthy operating cash flow to net income ratio of 2.02, underscoring robust cash generation relative to earnings. However, the free cash flow declined slightly by 8.06%, which could signal increased capital expenditures. Free cash flow to net income ratio remains positive at 0.83, indicating solid cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
60.90B	53.47B	43.65B	53.31B	47.07B	39.09B
	Gross Profit
20.61B	19.27B	17.67B	16.40B	14.52B	14.71B
	EBIT
10.67B	10.00B	8.65B	9.70B	7.80B	7.96B
	EBITDA
18.71B	16.87B	16.31B	9.85B	12.28B	9.33B
	Net Income Common Stockholders
6.29B	5.44B	6.19B	3.00B	6.19B	3.36B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.09B	1.80B	5.90B	861.00M	286.00M	452.00M
	Total Assets
220.04B	218.97B	180.32B	179.61B	168.86B	160.28B
	Total Debt
103.11B	101.67B	81.20B	80.98B	75.64B	66.90B
	Net Debt
101.03B	99.87B	75.30B	80.12B	75.35B	66.44B
	Total Liabilities
148.76B	150.08B	115.83B	116.21B	105.50B	95.91B
	Stockholders Equity
68.26B	65.90B	61.45B	59.89B	60.83B	61.37B
Cash Flow		Free Cash Flow
5.21B	5.67B	9.32B	6.41B	1.16B	4.16B
	Operating Cash Flow
12.70B	12.60B	14.20B	11.23B	9.26B	9.78B
	Investing Cash Flow
-14.70B	-20.36B	-7.18B	-5.27B	-10.66B	-5.18B
	Financing Cash Flow
2.71B	3.54B	-2.86B	-5.43B	1.22B	-4.77B

Enbridge Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENB, the sentiment is Positive. The current price of 62.66 is below the 20-day moving average (MA) of 62.96, above the 50-day MA of 61.92, and above the 200-day MA of 57.95, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 47.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ENB.

Enbridge Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENB	78 Outperform	$136.62B	23.10	9.51%	5.82%	43.97%	2.65%
KEY	77 Outperform	C$9.83B	18.01	19.55%	4.85%	8.00%	52.89%
PPL	74 Outperform	$29.92B	16.79	11.55%	5.32%	-5.42%	-1.70%
TRP	74 Outperform	$71.41B	16.33	15.89%	5.19%	0.72%	60.40%
GEI	73 Outperform	$3.68B	22.63	17.23%	7.42%	-5.85%	-8.05%
ALA	71 Outperform	C$11.25B	19.96	6.56%	3.17%	2.27%	-9.19%
Sector *	57 Neutral	$7.04B	3.12	-3.45%	5.79%	0.62%	-50.55%

Enbridge Corporate Events

Enbridge Inc. Declares Consistent Quarterly Dividends

Enbridge Inc. has announced the declaration of a quarterly dividend of $0.9425 per common share, consistent with its previous dividend, payable on June 1, 2025. The announcement includes dividends for various series of preferred shares, reflecting the company’s stable financial performance and commitment to returning value to shareholders.