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Is this Large Market Cap Stock target price reasonable for Enbridge Inc. (NYSE:ENB)?

The company in question is, Enbridge Inc. (NYSE:ENB) currently with a stock price of 40 (-1.70% today). The market cap for Enbridge Inc. is 37912.91, and is in the sector Basic Materials, and Oil & Gas Pipelines industry. The target price for Enbridge Inc. is 43.58. Currently Enbridge Inc. is trading with a P/E of 29.57, and a forward P/E of 21.74. Average volume for Enbridge Inc. is 970.83 and so far today it is 280291.

Performance in the last year for Enbridge Inc. has been -0.96%. For EPS growth, Enbridge Inc. has seen a growth of -103.30%, and is looking to grow in the next year to 4.64%. More long term stats show that EPS growth has been -15.30% over the last five years and could be 6.75% for the next five years. Enbridge Inc. has seen sales growth quarter over quarter at 10.90%, with EPS growth quarter over quarter at 402.00%. The 20-day simple moving average is -3.25%, with the 200-day simple moving average coming to 7.23%.

Since the IPO date for Enbridge Inc. on the 3/27/1990, Enbridge Inc. has seen performance year to date to be 25.39%. With Enbridge Inc. trading at 40, the dividend yield is 3.98%, and the EPS is 1.38.

So could Enbridge Inc., be undervalued? Well as said before P/E is 29.57. The PEG is 4.38, P/S is 1.41 and the P/B is at 3.27. The P/cash is 28.17, with P/free cash flow at *TBA.

Enbridge Inc. ability to deal with debt shows that the current ratio is 0.6, and the quick ratio is 0.6. This is with long term debt/equity at 2.58, and total debt/equity at 2.84.

In terms of margins, Enbridge Inc. has a gross margin of 29.90%, an operating margin of 10.00% and a profit margin of 4.50%.Payout ratio for Enbridge Inc. is 108.00%. Return on assets come to 1.90% with return on investment coming to 3.10%.

Insider ownership for Enbridge Inc., is at 9.20% and institutional ownership comes to 70.50%. Outstanding shares are at 931.75. While shares float is 927.91. The float short is currently 1.12%, and short ratio is 10.73.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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