Fundamental and Technical Analysis of Enbridge Inc.(ENB:TSX)

Enbridge Inc Stock Analysis:

Analysts rate Enbridge Inc. with a consensus Buy rating and a 12-month average target price of $58.15 per share.

The Enbridge Inc’s stock forecast from 14 investment analysts, has the average target price for Enbridge Inc at $58.15 over the next 12 month period for the stock’s trading value. The average analyst rating for Enbridge Inc’s rating is currently registered as a Buy rating.. The fundamental analytical research produced for Stock Target Advisor has a Slightly Bearish analysis on the company.  The analysis is based on 5 positive signals and 10 negative signals which were used as a metric to determine the possible direction of the stock.  Enbridge Inc’s stock price is currently trading down -3.57% for the year.

The current Crowd Analyst target price is $49.03 for the next 12 month period, with a Crowd Rating of Underperform.

STA Research maintains the Hold rating on the stock, with a 12 month target price of $45 per share. CIBC Investment Research arm, just recently lowered their 12 month target on the stock to $57 from $61, and maintained their bullish Outperform rating on ENB’s stock price.

About Enbridge Inc (ENB:CA:TSX)

Energy infrastructure is what Enbridge Inc. does. Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services are the company’s five operating segments. In order to transport different grades of crude oil and other liquid hydrocarbons in Canada and the United States, the Liquids Pipelines sector manages pipelines and associated terminals. In Canada and the United States, the Gas Transmission and Midstream segment makes investments in natural gas pipelines as well as gathering and processing facilities. In addition to providing natural gas to residential, commercial, and industrial clients in Ontario, the Gas Distribution and Storage sector also engages in natural gas distribution and energy transportation operations in Quebec. The Renewable Power Generation business manages transmission infrastructure in North America and Europe as well as power-generating assets like wind, solar, geothermal, and waste heat recovery plants. The Energy Services segment offers physical commodity marketing and logistics services in Canada and the United States, as well as energy marketing services to refiners, producers, and other customers. In October 1998, the business changed its name from IPL Energy Inc. to Enbridge Inc. Calgary, Canada serves as the company’s main office. Enbridge Inc. was established in 1949.

 

News:

Enbridge Inc. will be hosting their 2022 Third Quarter Earnings webcast on November 4th at 7am.  Details can be found on their website Enbridge Inc.

Enbridge Inc. spokesperson said on Monday October 17th that the company had reached an agreement on monetary penalties as a consequence of its Line 3 oil pipeline replacement project, which would see the company pay $11 million to Minnesota regulators.

The new CEO of the company reiterates he sees a very bright future for LNG, which is apart of a growing role for the renewable sector and is providing a opportunity for carbon capture developments as the use and type of energy conversion ramps up.

 

Fundamental Analysts Breakdown:

Enbridge Inc. is one of the largest entities in its sector. It is among the top quartile. This stock has performed well, on a risk adjusted basis, and outperformed its sector peers on average annual total returns basis in the past 5 years.  The company had positive total cash flow and positive total free cash flow  in the most recent four quarters.

The total returns for this company are volatile and above median for its sector over the past 5 years.  The stock is trading high compared to its peers on a price to earning basis, and on a price to cash flow basis. It is priced above the sector median. With regards to return on equity and assets, the company management has delivered below median in the most recent 4 quarters, and also has delivered below median return on invested capital.

Enbridge Inc. is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at it’s sector and management statements. Sometimes this is high because the company is trying to grow aggressively.  The stock is currently trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors.  This stock has shown below median earnings and revenue growth in the previous 5 years compared to its sector.

 

Technical Analysis for Enbridge’s stock:

The stock is currently trading at $51.30, up almost a one percent gain for the day. The stock has just come off at bottom at $49.94 per share, and is trending higher to test resistance at $55.  The stock has been in a downtrend since May 29th, and looks like that trend could remain for the duration of the year.  The next support level the stock could test could the $47 mark, and if the stock breaks through that level it could test the $37 level over the next 12 months, if resource prices weaken, and the macro picture worsens as a recession sets in, and intensifies.