Enbridge Current Valuation vs. Operating Margin
| EN3 Stock | EUR 41.74 0.51 1.24% |
For Enbridge profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Enbridge to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Enbridge utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Enbridge's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Enbridge over time as well as its relative position and ranking within its peers.
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Enbridge Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Enbridge's current stock value. Our valuation model uses many indicators to compare Enbridge value to that of its competitors to determine the firm's financial worth. Enbridge is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Enbridge is about 867,840,281,373 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Enbridge's earnings, one of the primary drivers of an investment's value.Enbridge Current Valuation vs. Competition
Enbridge is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Oil & Gas Midstream industry is currently estimated at about 250.85 Billion. Enbridge totals roughly 137.12 Billion in current valuation claiming about 55% of all equities under Oil & Gas Midstream industry.
Enbridge Operating Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Enbridge |
| = | 137.12 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.16 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enbridge Operating Margin Comparison
Enbridge is currently under evaluation in operating margin category among its peers.
Enbridge Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Enbridge, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Enbridge will eventually generate negative long term returns. The profitability progress is the general direction of Enbridge's change in net profit over the period of time. It can combine multiple indicators of Enbridge, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Enbridge Inc. operates as an energy infrastructure company in Canada and the United States. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada. ENBRIDGE INC operates under Oil Gas Midstream classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12000 people.
Enbridge Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Enbridge. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Enbridge position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Enbridge's important profitability drivers and their relationship over time.
Use Enbridge in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Enbridge position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Enbridge will appreciate offsetting losses from the drop in the long position's value.Enbridge Pair Trading
Enbridge Pair Trading Analysis
The ability to find closely correlated positions to Enbridge could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enbridge when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Enbridge - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Enbridge to buy it.
The correlation of Enbridge is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Enbridge moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enbridge moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Enbridge can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Enbridge position
In addition to having Enbridge in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aircraft Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Enbridge Stock
When determining whether Enbridge offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Enbridge's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Enbridge Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Enbridge Stock:Check out Investing Opportunities. For more detail on how to invest in Enbridge Stock please use our How to Invest in Enbridge guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
To fully project Enbridge's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Enbridge at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Enbridge's income statement, its balance sheet, and the statement of cash flows.