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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: My question is about Enbridge. After having your read your report, I quickly looked at its P/E value which was in the 80s. For such a large company, I figured it was a bit extreme and quickly concluded (possibly to quickly) that this was a bit of line. However, I put it on my watch list and slowly watched it creep up a few dollars.

Tonight I decided to give a further look and although the company has a huge moat, excellent revenue increases over the years, I also realized the following:

- Net income, free cash flow, EPS, ROE, ROA, Gross Margin have been consistently going down over the past 5 years (some of which had quite large decreases)
- Long term Debt, Shares outstanding have gone up over the past 5 years.

What is it that makes this company attractive? It appears to
be a well liked company, for today and for its medium and long term prospects. However, key financial metrics appear to give a different story. Naturally, there must be more than financial metrics that make a company worth investing in or accountants would all be rich. What is that I am missing?

Thank You.
Read Answer Asked by Walter on March 17, 2014
Q: I would like some general information. The development of LNG in Northeastern British Columbia seems to be moving along quite well. The Government is really pushing for it and they have most of the First Nations on their side. There is site preparation taking place on the West coast at Kitimat and Prince Rupert where it is to be shipped. What I would like to know - is there a particular pipeline Company that is best positioned to take advantage of transporting this LNG.
Read Answer Asked by Vicki on March 10, 2014
Q: Hello Peter....Since recently signing up for 5iR, I'm doing more homework as like trying to guess your response to questions. About the comparison of PPL and ENB, I looked on the free Bloomberg site for info and it shows ttP/E as 34.5 and 85.0, respectively and then forward P/E as 32.0 and 23.9. And you mentioned ENB is cheaper. When doing a comparative analysis, what are the reason for using the forward P/E rather than the trailing ratio? Also what accounts for the significant difference between trailing and forward P/Es? Exit question: For these two companies, Bloomberg doesn't show PEG ratios. (?) What "weight" do you place/give to this ratio for analysis purposes?.........Enjoy a deep freeze week-end....Tom M
Read Answer Asked by Tom on March 03, 2014
Q: Hello 51 Staff
Re PPL and ENB. I am trying to determine which of the two companies to purchase, trying to compare risk factors, div rate, projected growth, and other various metrics. Both companies appeal. What are the main determinants as you see them especially as to growth rate, risk factors. Thank you very much
Read Answer Asked by Phyllis on February 28, 2014
Q: Enbridge Inc. 4.40% 5.25 - Year Rate Reset Preferred Share

Short Description: Treasury Offering of Cumulative Redeemable Preferred Shares, Series 7
Price: $25.00 CDN per share.
This is a new issue just announced yesterday.
Preferred shares have not done well of late but given the stability of this company would these shares be a good investment at this time?
Read Answer Asked by shirley on December 04, 2013
Q: Hi Team,
I'm considering adding to my position on Enbridge (ENB) given the current weakness. Reading previous Q&A on Enbridge suggests you favour this stock even at a higher valuation. Is there anything currently applying pressure lowering the stock price that I should be cautious about, or is this still the fallout from the interest rate issue of the last few months?
Your views are much appreciated.
Marco.
Read Answer Asked by Marco on August 15, 2013