ENBRIDGE INC

Scaled, wide-moat North American energy-infrastructure franchise with contracted cash flows but elevated leverage and only moderate returns.

Strengths

• Top-percentile revenue growth (100th) and net-income growth (80th), with EBITDA (98.7th) and FCF (94.6th) at the top of the sector on long-term-contracted/regulated assets
• Strong operating (78th) and EBITDA margins (82.9th), 31 consecutive years of dividend increases and an investment-grade, diversified asset base

Risks

• High leverage — debt/equity 1.67 (88th), net debt/EBITDA 4.9 (84.5th) — and weak liquidity (current 0.63, quick 0.55, ~12th pct)
• Mediocre ROA (3.4%, 37th) and ROIC (5.2%, 51st); throughput, regulatory and energy-transition/stranded-asset risk on fossil assets

Notable findings

• Weak liquidityCurrent ratio 0.63 (<1)