ENBRIDGE INC (ENB) Stock Analysis
ENBRIDGE INC (ENB) Stock Analysis
Analysis from 10-Q filed 2025-11-07. Data as of Q4 2025.
Overall Grade: F (Concerning)
ENBRIDGE INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 5.1% | Below expectations |
| FCF Margin | 4.8% | Cash flow pressure |
| Debt/Equity | 1.8x | Elevated debt |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore ENBRIDGE INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: ENBRIDGE INC earns 5.1% ROIC, Bottom 50% in Transportation
ENBRIDGE INC's trailing-twelve-month ROIC of 5.1% ranks Bottom 50% in Transportation companies (sector median: 6.7%), driven by NOPAT margin of 13.4% combined with asset turnover of 0.3x. Source: 10-Q filed 2025-11-07. Gross margin of 43.5% with operating margin at 16.8% reflects strong pricing power.
| Metric | ENB | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.1% | Warning | Below sector median of 6.7% |
| Return on Equity (ROE) | 10.8% | Adequate | Moderate equity returns |
| Gross Margin | 43.5% | Good | Strong pricing power |
| Operating Margin | 16.8% | Good | Efficient operations |
Cash Flow: ENBRIDGE INC generates $3.1B FCF at 4.8% margin, positive NaN/8 quarters
ENBRIDGE INC generated $3.1B in free cash flow (TTM), a 4.8% FCF margin, a margin that ranks Top 50% in Transportation. Operating cash flow exceeds net income by 1.7x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-07.
| Metric | ENB | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 4.8% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $3.1B | Good | Positive cash generation |
| OCF/Net Income | 1.7x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: ENBRIDGE INC at 1.8x leverage
ENBRIDGE INC's debt-to-equity ratio of 1.8x reflects high leverage. Total debt of $112.1B offset by $1.3B in cash. Source: 10-Q filed 2025-11-07.
| Metric | ENB | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.8x | Warning | Elevated leverage |
| Net Cash Position | $-110.8B | Warning | Net debt position |
Valuation: ENBRIDGE INC trades at 14.8x earnings
ENBRIDGE INC trades at a P/E of 14.8x. Free cash flow yield of 3.0% reflects market expectations for growth.
| Metric | ENB | Rating | Context |
|---|---|---|---|
| P/E Ratio | 14.8x | Adequate | Reasonable valuation |
| EV/Sales | 3.2x | Good | Growth premium priced in |
| FCF Yield | 3.0% | Adequate | Lower cash yield |
| Dividend Yield | 1965299.6% | Good | Meaningful income |
Capital Allocation: ENBRIDGE INC returns 1965299.6% shareholder yield
ENBRIDGE INC's total shareholder yield is 1965299.6% (dividends 1965299.6% + buybacks). Source: 10-Q filed 2025-11-07.
| Metric | ENB | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1965299.6% | Excellent | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $8.6B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.1% | Bottom 50% | 0.8x below |
| Free Cash Flow Margin | 4.8% | Top 50% | 1.3x above |
| Gross Margin | 43.5% | Top 25% | 1.9x above |
| Operating Margin | 16.8% | Top 25% | 2.6x above |
| Return on Equity (ROE) | 10.8% | Top 50% | 1.0x above |
| P/E Ratio | 14.8x | N/A | - |
Financial Scorecard
| Metric | ENB | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.1% | Warning | Bottom 50% of sector (median: 6.7%) |
| Free Cash Flow Margin | 4.8% | Warning | Top 50% of sector (median: 3.8%) |
| Gross Margin | 43.5% | Good | Top 25% of sector (median: 23.3%) |
| Debt to Equity Ratio | 179.8% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 14.8x | Adequate | Attractively valued |
| Free Cash Flow Yield | 3.0% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is ENBRIDGE INC's Return on Invested Capital (ROIC)?
ENBRIDGE INC (ENB) has a trailing twelve-month Return on Invested Capital (ROIC) of 5.1%. This compares below the sector median of 6.7%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is ENBRIDGE INC's Free Cash Flow Margin?
ENBRIDGE INC (ENB) has a free cash flow margin of 4.8%, generating $3.1 billion in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is ENBRIDGE INC stock overvalued or undervalued?
ENBRIDGE INC (ENB) trades at a P/E ratio of 14.8x, which is above the sector median of N/A. The EV/Sales multiple is 3.2x. Free cash flow yield is 3.0%, reflecting growth expectations priced into the stock.
Q: Does ENBRIDGE INC pay a dividend?
ENBRIDGE INC (ENB) currently pays a dividend yield of 1965299.6%. Including share buybacks, the total shareholder yield is 1965299.6%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: How much debt does ENBRIDGE INC have?
ENBRIDGE INC (ENB) has a debt-to-equity ratio of 1.8x with total debt of $112.1 billion. Net debt position is $110.8 billion.
Q: What is ENBRIDGE INC's revenue and earnings growth?
ENBRIDGE INC (ENB) grew revenue by 21.9% year-over-year. Earnings per share increased by 37.0% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does ENBRIDGE INC compare to competitors in Transportation?
Compared to other companies in Transportation, ENBRIDGE INC (ENB) shows: ROIC of 5.1% is below the sector median of 6.7% (Bottom 42%). FCF margin of 4.8% exceeds the sector median of 3.8% (Top 46% of sector). Gross margin at 43.5% is 20.2 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Transportation companies with available SEC filings.
Q: What warning signs should I watch for with ENBRIDGE INC?
Investors in ENBRIDGE INC (ENB) should monitor these potential warning signs: 1) FCF margin is thin at 4.8%, leaving limited buffer for economic downturns. 2) Debt-to-equity of 1.8x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-07. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.