ENBEnbridge Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.4×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ENB?
Enbridge Inc. earns 5.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.0 points below what the capital costs: growth destroys value
- Operating margin
- 13%
Operating margin · Oil & Gas Midstream median 30% · 12 months to Q2 2026
- Cash conversion
- 1.41×
Cash conversion · 1.55× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.18%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 20% |
| FY2021 | 17% |
| FY2022 | 9.7% |
| FY2023 | 20% |
| FY2024 | 18% |
| FY2025 | 17% |
Details›
- Operating margin12 months to Q2 2026
- 13%
- Net margin12 months to Q2 2026
- 7.3%
- Free cash flow margin
- 2.0%
- Revenue, trailing twelve months
- $83.5B
- Free cash flow, trailing twelve months
- $1.67B
- Net income, trailing twelve months
- $6.13B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.