Enbridge (ENB) AI Stock Analysis

• Market Cap: $130.27B
• Dividend Yield: 6.45%
• Average Volume (3M): 7.23M
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.78
• Revenue Growth: 24.95%
• EPS Growth: -17.19%
• Country: CA
• Employees: 14,500
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 2.34
• Shares Outstanding: 2,179,190,700
• 10 Day Avg. Volume: 4,769,625
• 30 Day Avg. Volume: 7,227,229
• PEG Ratio: 0.22
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.56
• Price to Cash Flow (P/CF): 9.40
• P/FCF Ratio: 6.10
• 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: C$66.78
• Price Target Upside: 13.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Enbridge's strong financial performance, highlighted by record earnings and strategic growth initiatives, supports a robust overall score. The company's technical indicators are positive, though high leverage and potential overvaluation pose risks. The promising earnings call further bolsters confidence despite some regulatory challenges.

Positive Factors

Business Model Resilience

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

Dividend and Valuation

The price target for Enbridge has been raised to C$60 per share, reflecting a higher EBITDA forecast and expectations of dividend growth.

Growth Opportunities

A $50B opportunity through the end of the decade with organic success already surfacing in new sanctioned capex.

Negative Factors

Fair Valuation

Despite liking ENB's ~6% dividend yield and diverse energy infrastructure franchise, the shares are considered fairly valued at current levels.

Stock 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.

Tariff Uncertainty

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).

Enbridge Business Overview & Revenue Model

Company Description

Enbridge Inc. 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 natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution and energy transportation activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, and waste heat recovery facilities; and transmission assets in North America and Europe. The Energy Services segment provides energy marketing services to refiners, producers, and other customers; and physical commodity marketing and logistical services 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.

How the Company Makes Money

Enbridge generates revenue through several key streams. The primary source of income is its Liquids Pipelines segment, which transports crude oil and other liquid hydrocarbons across North America; the company charges tolls or tariffs for these transportation services. Another significant revenue stream is the Gas Transmission and Midstream segment, where Enbridge operates a network of natural gas pipelines, storage, and midstream facilities, earning income through long-term contracts and regulated rates. The Gas Distribution and Storage segment contributes to earnings by distributing natural gas to residential, commercial, and industrial customers, predominantly in Ontario, Canada. Additionally, Enbridge is expanding its presence in renewable energy, with investments in wind, solar, and geothermal projects, generating income from the sale of electricity. The company's financial performance is also supported by strategic partnerships with other energy companies and favorable regulatory environments that facilitate stable cash flow.

Enbridge Financial Statement Overview

Summary

Enbridge shows strong revenue growth and profitability with a solid income statement. However, high leverage and declining free cash flow present concerns around financial flexibility.

Income Statement

Enbridge's income statement reflects strong profitability with a consistent gross profit margin around 36% and a healthy net profit margin of approximately 10% in TTM. The revenue growth rate from 2023 to TTM shows a significant increase of 22.28%, indicating robust revenue expansion. The EBIT and EBITDA margins are solid, demonstrating efficient operational management. However, the net income shows a slight decline from the previous year, which could be a concern if it continues.

Balance Sheet

The balance sheet shows a relatively high debt-to-equity ratio of 1.54 in TTM, indicating significant leverage, which is typical in the fossil fuels industry but poses financial risk. The return on equity (ROE) is strong at 8.26%, demonstrating efficient use of equity to generate profit. The equity ratio is about 30.08%, reflecting a stable capital structure but highlighting the high leverage level.

Cash Flow

The cash flow analysis reveals a decline in free cash flow from the previous year, with a negative growth rate. The operating cash flow to net income ratio of 2.40 in TTM indicates solid cash generation relative to net earnings. However, the free cash flow to net income ratio has decreased, suggesting potential pressures on liquidity if capital expenditures remain high.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.47B	43.65B	53.31B	47.07B	39.09B
	Gross Profit
19.27B	17.67B	16.40B	14.52B	14.71B
	EBIT
9.65B	8.65B	9.70B	7.80B	7.96B
	EBITDA
16.87B	16.31B	9.85B	12.28B	9.33B
	Net Income Common Stockholders
5.44B	6.19B	3.00B	6.19B	3.36B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80B	5.90B	861.00M	286.00M	452.00M
	Total Assets
218.97B	180.32B	179.61B	168.86B	160.28B
	Total Debt
101.67B	81.20B	80.98B	75.64B	66.90B
	Net Debt
99.87B	75.30B	80.12B	75.35B	66.44B
	Total Liabilities
150.08B	115.83B	116.21B	105.50B	95.91B
	Stockholders Equity
65.90B	61.45B	59.89B	60.83B	61.37B
Cash Flow		Free Cash Flow
5.67B	9.32B	6.41B	1.16B	4.16B
	Operating Cash Flow
12.60B	14.20B	11.23B	9.26B	9.78B
	Investing Cash Flow
-20.36B	-7.18B	-5.27B	-10.66B	-5.18B
	Financing Cash Flow
3.54B	-2.86B	-5.43B	1.22B	-4.77B

Enbridge Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENB, the sentiment is Negative. The current price of 58.67 is below the 20-day moving average (MA) of 62.55, below the 50-day MA of 61.89, and above the 200-day MA of 56.47, indicating a neutral trend. The MACD of 0.65 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ENB.

Enbridge Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	78 Outperform	C$9.37B	19.26	17.35%	5.18%	2.89%	14.76%
ENB	73 Outperform	$130.27B	25.53	8.63%	6.45%	24.95%	-17.19%
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%

Enbridge Corporate Events

Enbridge Files 2024 Financial Disclosures, Plans Virtual Shareholder Meeting

Enbridge Inc. has filed its 2024 year-end financial disclosure documents with both U.S. and Canadian securities authorities, providing stakeholders with access to its consolidated financial statements and management’s discussion and analysis. The company is set to hold its annual shareholders’ meeting virtually on May 7, 2025. This filing underscores Enbridge’s commitment to transparency with its investors and stakeholders, and its ongoing efforts to maintain a strong operational and market position in the energy sector.

Enbridge Achieves Record 2024 Financial Results and Strategic Milestones

Enbridge reported record financial results for 2024, with full-year GAAP earnings of $5.1 billion and adjusted earnings of $6.0 billion. The company achieved its financial guidance for the 19th consecutive year, underscoring its operational stability. Enbridge also announced several strategic moves, including settlements with customers and a sale of minority interests, as well as new projects worth $8 billion, to enhance its service capabilities and shareholder value.