Nuts stocks are some of the most reliable and low risk shares on the TSX index. With high revenues, consistent dividend growth and government streams regulated by the government, they are as small monopolies. Although this status of “monopoly” has not led all TSX tools are from top performers, it has lifted a number of them. In this article I investigate one TSX Energy/Utility shares that yields 6.1% and contains half of the nature gas, companies and facilities of the country.
Enbridge
Although you may be surprised to see pipeline giant Enbridge Inc (TSX: ENB) described as a utility, it is in fact one. In particular, it has a usefulness of natural gas that operates 50% to 53% of Canadian natural gas users, depending on the count. The company is mainly dominant in Ontario, where it delivers 75% of the natural gas of the province.
How much money and the natural gas company from Enbridge earn
The natural gas company Van Enbridge is part of a larger company that is best known for operating raw oil pipelines. The natural gas company – which also depends on the transport of pipelines – is a natural expansion of its main activities.
How much does the ENB natural gas company earn? We can measure that by looking at the most recent annual report of the company.
In the first quarter of 2021, the segment of the natural gas area of Enbridge earned $ 1.6 billion in adapted income before interest, tax, depreciation and amortization (EBITDA). That was 27.5% of the total EBITDA of the company for the period. The trend was comparable for the entire year 2024, when the company’s gas use $ 2.9 billion in EBITDA or earned 15% of the total of the company. So, the huge company for Natural Gas area of Enbridge makes a significant contribution to Enbridge as a general company.
General performance
Enbridge has recently delivered satisfactory financial results.
In the backlog of 12 months (TTM), the company had a gross profit margin of 42.5%, an 18% business profit margin, a net income margin of 10% and a 5% free cash flow (FCF) margin. The FCF-Marge was somewhat stopped by high acquisition-related capital expenditure (Capex), but most other margins were healthy.
Enbridge supplied a more mixed show for growth in the TTM period. The company’s turnover increased by 43%and the business income grew by 19%, but the net income hardly increased and the FCF Kromp by around 10%. However, take into account the acquisition -related Capex: these costs will probably not return.
Valuation
Last but not least we can look at Enbridge shares from the perspective of valuation relationships. In the TTM period, Enbridge exchanged on multiples that could be described as “approximately average” for the TSX. Eurtervoids of these multiples include:
- P/E ratio: 21.
- Price/sales ratio: 2.2.
- Price/book ratio: 2.2.
- Price/cash flow ratio: 10.7.
So, Enbridge is not a bargain in a rock bottom, but it is also not particularly expensive.
Fool
Taking everything into account everywhere, I think that Enbridge is today an “OK” dividend game. The shares of the company yield 6.1% and the dividend has grown over time. The payout ratio – 126% – is a bit on the high side, but the cash flow extension ratio (using the operational cash flow) is only 60%. It is a mixed photo, but I would not imagine that those who are going to lose their shirts for a long time.
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