ENBRIDGE INC (ENB) Stock Analysis
ENBRIDGE INC
▾ What's in the 30/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.
How to read ENB (pipeline / MLP)
Midstream partnerships are about the distribution and whether cash flow safely covers it — not P/E.
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MLP / Pipeline lens (distribution coverage) ↓
The coverage ratio tells you if the payout is safe; the yield tells you what you are paid to wait.
Standard DCF doesn't fit ENB well — but that's expected for this kind of business. The MLP / Pipeline Lens below uses the metrics actually used by analysts who value pipelines. Reverse DCF + Football Field also work as cross-checks.
⚠ We found only 1 genuine same-industry (Pipelines) comparable — fewer than the 4 we require for a reliable median. The 7 names in the table below therefore include 6 broader Energy names marked fallback, whose business models and margins differ — which is why any median below is computed over that wider set, not over true comparables. So we do not derive a peer-implied share value here. Read the multiples as rough context only.
How does ENB stack up against its closest peers?
Ideally we compare ENB only to same-industry peers, but too few exist in our universe right now, so the basket below mixes in broader-sector names. Treat the multiples as rough context, not a valuation. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
0.9x / 3.3x / 5.9x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 7 peers (broad — see caveat); implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (7)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| MPLX | MPLX LP | Pipelines | $55.5B | 5.9x | — | 9.6x | 7.8% |
| PBR | PETROBRAS - PETROLEO BRASILEIRO SA | Oil & Gas Extraction ·fallback | $139.7B | — | 3.0x | — | 7.6% |
| SU | SUNCOR ENERGY INC | Petroleum Refining ·fallback | $74.4B | — | — | — | — |
| TTE | TotalEnergies SE | Oil & Gas Extraction ·fallback | $188.0B | 0.9x | — | — | 9.8% |
| WDS | WOODSIDE ENERGY GROUP LTD | Oil & Gas Extraction ·fallback | $42.6B | 3.3x | 9.4x | — | 6.0% |
| PBA | PEMBINA PIPELINE CORP | Oilfield Services ·fallback | $27.0B | — | — | — | — |
| SHEL | Shell plc | Oil & Gas Extraction ·fallback | $502.9B | — | — | — | — |
Distribution coverage matters more than P/E
Midstream pipelines pay big distributions (the headline reason to own them) funded by Distributable Cash Flow. The critical metric is the Coverage Ratio — how comfortably DCF exceeds distributions. Below 1.0× means the distribution is borrowed; below 1.1× means no margin of safety for a commodity downturn.
Note: We approximate Distributable Cash Flow via FCF (subtracts all CapEx), which over-penalizes growth-CapEx-heavy midstream. The company-reported "DCF" typically adds back growth CapEx, making coverage look stronger. Treat this as a conservative floor. Also: MLPs issue K-1 tax forms instead of 1099-DIVs — distributions are partially tax-deferred return of capital, not ordinary dividends.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Midstream MLPs run high leverage backed by long-life pipeline infrastructure — Altman Z flags this as distress even when the cash flows are contractually locked in. See the MLP / Pipeline Lens above for the metric that actually matters: Distribution Coverage Ratio.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
Piotroski F's checks (operating cash flow, gross-margin trend, current ratio, asset turnover) assume an industrial cost structure, so they misread asset-heavy or financial businesses like this one — a healthy REIT, utility, pipeline, BDC/fund or holding company can score low for reasons that aren't weakness. See the sector lens above for the metrics that actually matter.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for Enbridge Inc. due to its negative operating cash flow and net income in the latest period, making traditional cash flow projections unreliable. Investors are likely focused on the company's essential role in energy infrastructure and its ability to generate stable, albeit currently negative, cash flows from its regulated assets. The biggest risk to our assumptions is that the company's operating cash flow remains negative, indicating a fundamental challenge in its core operations.
As of 22 days ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Improvement in operating cash flow next quarter
- Stabilization of net income
- Regulatory approvals for new projects
Management & Leadership
Enbridge Inc. is led by President and CEO Greg Ebel, who assumed the role in January 2023. The company operates as a major North American energy infrastructure company.
What They Make
Enbridge Inc. transports, distributes, and generates energy across North America. The company primarily earns revenue from fees charged to energy producers and utility companies for the use of its pipeline and utility infrastructure.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The income statement and balance sheet are also too incomplete here to substitute another lens honestly, so this page carries price, momentum and disclosure facts only.
The market prices Enbridge based on its essential role in North American energy infrastructure and the long-term, regulated nature of its assets, despite current negative operating cash flow and net income. Investors are likely betting on the stability of its contracted revenues and future cash flow generation once current operational challenges are resolved.
Business Model & Valuation
How They Make Money
Enbridge is known for its consistent dividend payments, which are funded through its operational cash flows and, when necessary, debt or equity raises.
Normalized FCF
Cyclical/commodity sector (Pipelines) with negative current FCF: normalized FCF uses multi-year median to smooth through the cycle.
Show advanced inputs
| SectorDefault | 4.0% |
| SectorDefaultSource | Energy sector default |
| BestEstimate | 4.0% |
| Method | sector_default |
| GrowthBasis | total |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Net income and operating cash flow have been negative in the latest period, indicating recent challenges.
Geography & Markets
Enbridge operates primarily across North America, with significant pipeline and utility infrastructure in both Canada and the United States.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)58.9NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BullishLine above signalThe fast trend is above the slow trend — short-term momentum is currently upward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (8 notes — click to expand/collapse)
Guardrail Notes (8)
- Cyclical sector: using normalized cash flow (median OCF minus estimated maintenance capex).
- Median OCF is negative — OCF-based normalization not applicable.
- Limited cash flow history (0yr) — normalized FCF is less reliable.
- No positive normalized FCF. Using EPS as proxy.
- Model implies no positive equity value under these assumptions. Valuation is speculative/low-confidence.
- Extreme valuation: the model output is implausibly high vs the price — usually a share-count or units error. The model value is suppressed.
- VALUATION HELD (EXTREME_MODEL_GAP): per-share values suppressed due to the model output failed plausibility checks.
- Extreme valuation gap (P/IV null): result may be dominated by model assumptions, share count issues, or sector-specific dynamics. Treat as low confidence.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From ENBRIDGE INC's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | — | — | $0.00 |
| 2024 | — | — | $0.00 |
| 2023 | — | — | $0.00 |
| 2022 | — | — | $0.00 |
| 2021 | — | — | $0.00 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC | Free Cash Flow |
|---|---|---|---|---|
| 2017 | N/A | N/A | N/A | N/A |
| 2016 | N/A | N/A | N/A | N/A |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a normalized multi-year median, not this single year.