Eni SPA (E) AI Stock Analysis

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Eni SPA

(NYSE:E)

77Outperform

Eni SPA's stock is supported by strong technical indicators and a reasonable valuation, offering attractive income potential. However, its financial performance is mixed, with challenges in profitability and increased leverage posing potential risks.

Eni SPA (E) vs. S&P 500 (SPY)

Market Cap

$37.51B

Dividend Yield5.42%

Average Volume (3M)321.44K

Price to Earnings (P/E)15.8

Beta (1Y)0.41

Revenue Growth-5.16%

EPS Growth-41.74%

CountryUS

Employees33,142

SectorEnergy

Sector Strength52

IndustryOil & Gas Integrated

Share Statistics

EPS (TTM)1.80

Shares Outstanding1,573,382,600

10 Day Avg. Volume382,357

30 Day Avg. Volume321,441

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.51

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$31.60

Price Target Upside24.07% Upside

Rating ConsensusHold

Number of Analyst Covering0

Eni SPA Business Overview & Revenue Model

Company DescriptionEni S.p.A. engages in the exploration, development, and production of crude oil and natural gas. It operates through Exploration & Production; Global Gas & LNG Portfolio; Refining & Marketing and Chemicals; Plenitude and Power; and Corporate and Other activities segments. The Exploration & Production segment is involved in the research, development, and production of oil, condensates and natural gas; and forestry conservation and CO2 capture and storage projects. The Global Gas & LNG Portfolio segment engages in the supply and wholesale of natural gas by pipeline, international transport; and purchase and marketing of LNG. The Refining & Marketing and Chemicals segment is involved in the processing, supply, distribution, and marketing of fuels and chemicals. The Eni gas e luce, Power & Renewables segment engages in the retail sales of gas, electricity, and related activities, as well as in the production and wholesale of electricity produced by thermoelectric and renewable plants. As of December 31, 2021, it had net proved reserves of 6,628 million barrels of oil equivalent; and installed operational capacity of 4.5 GW. The company was founded in 1953 and is headquartered in Rome, Italy.

How the Company Makes MoneyEni S.p.A. generates revenue through several key streams within the energy sector. The company's primary source of income is from its Exploration & Production segment, where it engages in the discovery and extraction of oil and natural gas. Eni sells these hydrocarbons on the global market, benefiting from fluctuations in commodity prices. Additionally, the company operates in the Gas & Power sector, where it markets and sells natural gas and electricity to wholesalers and end-users, including homes and businesses. Eni also earns revenue from its Refining & Marketing and Chemicals divisions, which involve the processing of crude oil into various petroleum products and the production of petrochemicals. The company's commitment to sustainability is reflected in its investments in renewable energy projects, which are gradually becoming a more significant part of its revenue portfolio. Strategic partnerships, joint ventures, and technological innovations also play a critical role in enhancing Eni's operational efficiency and expanding its market reach.

Eni SPA Financial Statement Overview

Summary

Eni SPA's financials show strengths in cost management and cash generation, but face challenges in revenue growth and profitability. The increase in leverage and decline in return on equity may pose future risks.

Income Statement

Positive

Eni SPA showed a mixed performance in its income statement. The gross profit margin improved from 13.2% in 2023 to approximately 22.2% in 2024, indicating better cost management. However, the net profit margin decreased from 5.1% to 2.9%, reflecting challenges in profitability. Revenue declined by 2.7% over the year, presenting a concern for growth. The EBIT margin fell from 8.8% to 5.8%, and the EBITDA margin decreased slightly from 18.9% to 18.4%, suggesting pressure on operating performance.

Balance Sheet

Positive

The balance sheet shows moderate financial stability. The debt-to-equity ratio stood at 0.70 in 2024, slightly higher than 0.62 in 2023, indicating increased leverage. Return on equity declined from 9.0% to 5.0%, reflecting reduced profitability relative to equity. The equity ratio remained stable at around 36.0%, indicating a consistent capital structure but with potential risks if leverage continues to rise.

Cash Flow

Positive

Cash flow analysis reveals a decline in free cash flow from €5.9 billion in 2023 to €5.1 billion in 2024, a decrease of 13.6%, which could affect future investments. The operating cash flow to net income ratio improved to around 4.96, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio decreased, suggesting reduced efficiency in converting profits into cash flows.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
91.21B	93.72B	132.51B	76.58B	43.99B
	Gross Profit
20.25B	12.40B	22.78B	13.96B	3.13B
	EBIT
5.25B	8.26B	17.51B	12.34B	-3.27B
	EBITDA
16.82B	17.76B	28.52B	19.86B	3.60B
	Net Income Common Stockholders
2.64B	4.77B	13.89B	5.82B	-8.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.98B	16.98B	19.91B	18.86B	15.17B
	Total Assets
146.95B	142.61B	152.17B	137.76B	109.65B
	Total Debt
36.84B	33.11B	31.87B	33.13B	31.70B
	Net Debt
28.66B	28.95B	21.71B	24.88B	22.29B
	Total Liabilities
91.26B	88.96B	96.94B	93.25B	72.16B
	Stockholders Equity
52.83B	53.18B	54.76B	44.44B	37.41B
Cash Flow		Free Cash Flow
5.09B	5.90B	5.04B	7.63B	190.00M
	Operating Cash Flow
13.09B	15.12B	5.82B	12.86B	4.82B
	Investing Cash Flow
-9.82B	-9.37B	-3.71B	-12.02B	-4.59B
	Financing Cash Flow
-5.38B	-5.67B	-1.09B	-2.04B	3.25B

Eni SPA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price25.47

Price Trends

50DMA

29.08

Negative

100DMA

28.39

Negative

200DMA

29.26

Negative

Market Momentum

MACD

0.63

Negative

RSI

67.59

Neutral

STOCH

47.20

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For E, the sentiment is Negative. The current price of 25.47 is below the 20-day moving average (MA) of 29.67, below the 50-day MA of 29.08, and below the 200-day MA of 29.26, indicating a bearish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 67.59 is Neutral, neither overbought nor oversold. The STOCH value of 47.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for E.

Eni SPA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEL	79 Outperform	$175.55B	12.50	8.82%	4.35%	-5.74%	-11.09%
EQNR	79 Outperform	$60.17B	7.51	19.39%	4.90%	-4.07%	-20.34%
TTE	78 Outperform	$114.45B	8.28	13.43%	4.88%	-10.66%	-23.19%
E	77 Outperform	$37.51B	15.78	5.58%	5.42%	-5.16%	-41.74%
PBR	66 Neutral	$75.00B	11.60	10.52%	21.63%	-10.81%	-70.65%
BP	61 Neutral	$67.19B	195.38	0.59%	6.65%	-9.97%	-98.08%
Sector *	57 Neutral	$7.72B	4.32	-3.75%	6.33%	-0.11%	-64.75%

* Energy Sector Average

Performance Comparison

Eni SPA

25.47

-6.00

-19.07%

26.23

-11.28

-30.07%

PBR

Petroleo Brasileiro SA- Petrobras

11.30

-2.02

-15.17%

SHEL

Shell

59.78

-10.02

-14.36%

EQNR

Equinor ASA

22.56

-3.19

-12.39%

TTE

TotalEnergies

54.72

-15.06

-21.58%

Eni SPA Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -13.87% | Next Earnings Date: Apr 24, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Eni's resilient financial performance, strategic investments, debt reduction, and increased shareholder returns. However, challenges in the chemical segment and weak bio scenarios were notable lowlights, balanced by significant achievements in upstream performance and strategic growth initiatives.

Highlights

Resilient Financial Performance

Reported pro forma adjusted EBIT of EUR 3.4 billion and cash flow from operations of EUR 2.9 billion, despite a 14% year-on-year decline due to a deteriorating scenario.

Debt Reduction

Lowered net debt and leverage well ahead of the original plan, with expectations to further reduce leverage by year-end.

Strategic Investments and Growth

Confirmed EUR 2.9 billion investment by KKR into Enilive for a 25% stake, and sanctioned two biorefineries in South Korea and Malaysia.

Strong Upstream Performance

Upstream contributed EUR 3.2 billion of pro forma EBIT, with production up 2% year-on-year.

Increased Shareholder Returns

Increased 2024 share buyback to EUR 2 billion, reflecting better-than-planned progress in M&A and business performance.

Lowlights

Chemical Segment Challenges

Versalis has accumulated material losses over the past years, and EBIT breakeven is unlikely for 2025 due to a grim market outlook.

Weak Bio Scenario Impact

Enilive's EBIT was hurt by a weak bio scenario despite strong biorefinery throughput and growth.

Volatile Energy Markets

Energy markets continue to be volatile and unpredictable, driven by a mixture of fundamentals, geopolitics, and speculative trading flows.

Company Guidance

In the third quarter of 2024, Eni demonstrated resilience despite challenging market conditions, reporting a pro forma adjusted EBIT of EUR 3.4 billion and a cash flow from operations of EUR 2.9 billion, both down 14% year-on-year. The company successfully lowered its debt and leverage ahead of schedule, strengthening its balance sheet. Eni sanctioned two new biorefineries in South Korea and Malaysia, with construction at Livorno set to begin soon, and expects to start its first biojet plant in Gela by year-end. Eni's upstream segment was a significant contributor, with production increasing by 2% year-on-year and notable developments in Indonesia expected to yield over 400,000 barrels per day. The company also achieved key milestones in its carbon capture and storage (CCS) efforts, with the first CO2 injection at the Ravenna project in Italy and secured government funding for the HyNet CCS project in the UK. Despite a challenging environment, Eni maintained its commitment to shareholder returns, announcing an increase in its 2024 share buyback program to EUR 2 billion, reflecting strong financial performance and strategic progress.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.