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Enbridge Inc (TSE:ENB)
TSX:ENB

Enbridge (ENB) AI Stock Analysis

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Enbridge

(TSX:ENB)

Rating:78Outperform
Price Target:
C$72.00
â–²( 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 (ENB) vs. iShares MSCI Canada ETF (EWC)

Enbridge Business Overview & Revenue Model

Company DescriptionEnbridge 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 MoneyEnbridge 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
85
Very Positive
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
78
Positive
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
80
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
60.90B53.47B43.65B53.31B47.07B39.09B
Gross Profit
20.61B19.27B17.67B16.40B14.52B14.71B
EBIT
10.67B10.00B8.65B9.70B7.80B7.96B
EBITDA
18.71B16.87B16.31B9.85B12.28B9.33B
Net Income Common Stockholders
6.29B5.44B6.19B3.00B6.19B3.36B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.09B1.80B5.90B861.00M286.00M452.00M
Total Assets
220.04B218.97B180.32B179.61B168.86B160.28B
Total Debt
103.11B101.67B81.20B80.98B75.64B66.90B
Net Debt
101.03B99.87B75.30B80.12B75.35B66.44B
Total Liabilities
148.76B150.08B115.83B116.21B105.50B95.91B
Stockholders Equity
68.26B65.90B61.45B59.89B60.83B61.37B
Cash FlowFree Cash Flow
5.21B5.67B9.32B6.41B1.16B4.16B
Operating Cash Flow
12.70B12.60B14.20B11.23B9.26B9.78B
Investing Cash Flow
-14.70B-20.36B-7.18B-5.27B-10.66B-5.18B
Financing Cash Flow
2.71B3.54B-2.86B-5.43B1.22B-4.77B

Enbridge Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.66
Price Trends
50DMA
61.92
Positive
100DMA
61.37
Positive
200DMA
57.95
Positive
Market Momentum
MACD
0.28
Positive
RSI
51.55
Neutral
STOCH
47.14
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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSENB
78
Outperform
$136.62B23.109.51%5.82%43.97%2.65%
TSKEY
77
Outperform
C$9.83B18.0119.55%4.85%8.00%52.89%
TSPPL
74
Outperform
$29.92B16.7911.55%5.32%-5.42%-1.70%
TSTRP
74
Outperform
$71.41B16.3315.89%5.19%0.72%60.40%
TSGEI
73
Outperform
$3.68B22.6317.23%7.42%-5.85%-8.05%
TSALA
71
Outperform
C$11.25B19.966.56%3.17%2.27%-9.19%
57
Neutral
$7.04B3.12-3.45%5.79%0.62%-50.55%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ENB
Enbridge
62.66
16.11
34.61%
TSE:TRP
TC Energy
68.71
23.65
52.48%
TSE:ALA
AltaGas
37.63
8.32
28.39%
TSE:GEI
Gibson Energy
22.46
1.53
7.30%
TSE:PPL
Pembina Pipeline
51.50
4.11
8.67%
TSE:KEY
Keyera Corp.
42.00
7.75
22.63%

Enbridge Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q1-2025)
|
% Change Since: -0.27%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
Enbridge reported a strong first quarter with record financial results and significant growth initiatives across its business segments. The company successfully managed to navigate the challenging macroeconomic environment, reaffirming its financial guidance. However, seasonality, interest rates, and regulatory uncertainties present potential challenges for the remainder of the year.
Q1-2025 Updates
Positive Updates
Record Financial Performance
Enbridge delivered record EBITDA, DCF per share, and earnings per share in Q1 2025, driven by U.S. utilities acquired and strong volumes across the business.
Strong Liquids Pipeline Performance
Liquids delivered record volumes of almost 3.2 million barrels per day, with Mainline and Ingleside setting quarterly volume records.
Growth in Renewable Power
The Orange Grove Solar facility entered service on time and on budget, contributing to over 500 megawatts of solar expected to be placed into service this year.
Successful Acquisitions and Expansions
Enbridge acquired a 10% interest in the Matterhorn Express Pipeline and sanctioned the Traverse Pipeline, enhancing its Permian natural gas franchise.
Positive Outlook and Stable Guidance
The company reaffirmed its 2025 financial guidance, expecting to hit financial targets for the 20th consecutive year, with strong prospects for continued growth.
Negative Updates
Seasonality and Financial Considerations
Enbridge noted the impact of seasonality on its business, with Q2 expected to be weaker compared to Q1 and Q4, highlighting the challenges of managing quarterly earnings expectations.
Interest Rate and FX Headwinds
Higher U.S. interest rates and FX volatility present potential headwinds, although not anticipated to materially impact financial results.
Regulatory Challenges
Enbridge faces regulatory uncertainties, particularly in Ontario regarding cost of capital and jurisdiction competitiveness, impacting future capital allocation decisions.
Company Guidance
During the Enbridge First Quarter 2025 Financial Results Conference Call, the company reaffirmed its 2025 financial guidance, highlighting record achievements in EBITDA, DCF per share, and earnings per share. Enbridge committed to maintaining a debt-to-EBITDA metric between 4.5x to 5x and anticipated improvements throughout the year. Strategic growth was emphasized with $3 billion of accretive projects secured year-to-date, including the acquisition of a 10% interest in the Matterhorn Express Pipeline and the sanctioning of the Traverse Pipeline. The company also highlighted its diversified business model, with over 98% of EBITDA protected by regulated or take-or-pay frameworks, and a strong focus on capital allocation based on risk-adjusted returns and regulatory environments. Enbridge's expansion efforts in the renewable sector were noted with the Orange Grove Solar facility's timely and budgeted service commencement, and future growth announcements were anticipated in response to increasing natural gas demand and infrastructure needs.

Enbridge Corporate Events

Dividends
Enbridge Inc. Declares Consistent Quarterly Dividends
Positive
Apr 24, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.