Enbridge Inc
🇨🇦 ENB.TO · Toronto · CA29250N1050
Infrastructure
CAD 75.40 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
22.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 75.40 ÷ 3.43 = 22.0
TTM period through: 2025-12-31
Forward P/E (estimated): 24.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 23.4
Yield (Fwd)
5.15%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 5.06%
Net Debt/EBITDA (TTM)
6.2x
Latest quarter: 23.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 23.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
113.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 115.3%
Cash Flow Payout (TTM): 66.7%
FCF Coverage (TTM): 0.46x
ROE
11.6%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
13.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Enbridge is a premier North American energy infrastructure company operating a highly defensible network of pipelines and utility assets. While the company offers a highly reliable 5.06% TTM dividend yield backed by consistent operating cash flows and a strong 10-year growth history, the current valuation at a P/E of 22.00 offers limited upside multiple expansion. Existing shareholders should maintain positions to collect the reliable income, but new investors may want to monitor the stock for a better entry point closer to historical valuation norms.
Sector Context
Enbridge operates a massive 'toll road' network of midstream pipelines and utility assets across North America, generating revenue by transporting crude oil and natural gas. In the energy infrastructure sector, elevated debt levels (Net Debt/EBITDA > 4x) and high capital expenditures are standard, as operations are backed by highly predictable, long-term contracted cash flows rather than fluctuating commodity prices.
📊 Strategy Analysis
- • Exceptionally strong competitive moat with a 'toll road' business model moving a significant portion of North American crude oil and natural gas.
- • Flawless 10-year dividend history with zero cuts and a 10.8% historical CAGR, backed by a healthy cash flow payout ratio of 66.7%.
- • Highly predictable operating cash flow of $32.6B CAD driven by long-term, inflation-linked contracts.
- • Stable long-term leverage profile; while Net Debt/EBITDA is 6.2x, this is historically consistent for the company (was 6.7x in 2014) and manageable within the midstream utility sector.
⚠ What to Watch
- • Elevated valuation with a TTM P/E of 22.00 and a current price of $75.40 CAD, which significantly exceeds the calculated monopoly fair value upper bound of $61.68 CAD.
- • Recent trailing quarters show a decline in reported earnings, inflating the traditional earnings payout ratio to an optically concerning 132.8%.
- • High capital intensity results in low reported free cash flow ($232M) relative to massive operating cash flows ($32.6B), highlighting heavy ongoing infrastructure investment requirements.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.