Eni SPA (E) AI Stock Analysis

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Eni SPA

(NYSE:E)

74Outperform

Eni SPA shows a strong financial position with robust operational efficiency and strategic advancements in transition businesses. Despite facing challenges in certain segments like refining and chemicals, the company maintains a resilient outlook with a strategic focus on cost management and market adaptability. The valuation is fair, with an attractive dividend yield, while technical indicators suggest some caution in short-term market movements.

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

Market Cap

$43.66B

Dividend Yield5.07%

Average Volume (3M)412.53K

Price to Earnings (P/E)16.1

Beta (1Y)0.31

Revenue Growth-2.17%

EPS Growth-25.00%

CountryUS

Employees32,492

SectorEnergy

Sector Strength47

IndustryOil & Gas Integrated

Share Statistics

EPS (TTM)1.78

Shares Outstanding1,573,382,600

10 Day Avg. Volume336,851

30 Day Avg. Volume412,531

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

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 Upside9.72% 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 shows solid operational efficiency with strong gross profit and EBITDA margins despite a slight decline in net profit margin. The company maintains a balanced debt-to-equity ratio and strong cash flow generation capabilities, but faces challenges from declining revenue and ROE.

Income Statement

Positive

Eni SPA shows a strong gross profit margin of 12.5% and an EBITDA margin of 23.8% for TTM, indicating solid operational efficiency amidst industry challenges. However, the net profit margin has slightly declined to 2.9% due to increased operating expenses. Revenue growth has been negative recently, with a 5.8% decrease from the previous annual report, reflecting market volatility in the Oil & Gas sector.

Balance Sheet

Positive

The company maintains a moderate debt-to-equity ratio of 0.67, demonstrating a balanced approach to leverage. The equity ratio stands at 37.1%, showing a solid equity base. However, ROE has decreased to 4.9% TTM, highlighting challenges in generating returns on equity.

Cash Flow

Positive

Operating cash flow has remained robust with a slight increase, resulting in a high operating cash flow to net income ratio of 5.2, indicating efficient cash generation relative to net income. Free cash flow growth is modest at 4.7%, but the company maintains strong free cash flow relative to net income, ensuring cash availability for strategic initiatives.

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

Positive

Last Price28.80

Price Trends

50DMA

28.97

Negative

100DMA

28.35

Positive

200DMA

29.14

Negative

Market Momentum

MACD

-0.06

Negative

RSI

51.91

Neutral

STOCH

71.16

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For E, the sentiment is Positive. The current price of 28.8 is above the 20-day moving average (MA) of 27.74, below the 50-day MA of 28.97, and below the 200-day MA of 29.14, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 51.91 is Neutral, neither overbought nor oversold. The STOCH value of 71.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for E.

Eni SPA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
E	74 Outperform	$43.66B	16.11	4.78%	5.07%	-2.17%	-25.00%
EQNR	73 Outperform	$62.92B	7.45	19.39%	5.14%	-4.07%	-20.34%
TTE	71 Outperform	$115.97B	8.20	11.75%	4.80%	-10.66%	-23.19%
PBR	66 Neutral	$69.94B	10.78	10.52%	23.73%	-10.81%	-70.65%
SHEL	66 Neutral	$180.57B	12.15	8.82%	4.29%	-5.74%	-11.09%
BP	62 Neutral	$68.32B	186.20	-1.87%	6.66%	-7.70%	-113.83%
Sector *	56 Neutral	$6.92B	3.31	-4.49%	6.03%	-0.35%	-47.83%

* Energy Sector Average

Performance Comparison

Eni SPA

28.80

-1.48

-4.89%

28.12

-8.50

-23.21%

PBR

Petroleo Brasileiro SA- Petrobras

11.61

-2.66

-18.64%

SHEL

Shell

66.64

-2.89

-4.16%

EQNR

Equinor ASA

23.25

-1.76

-7.04%

TTE

TotalEnergies

57.73

-10.79

-15.75%

Eni SPA Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 1.77%|

Next Earnings Date:Jul 25, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong financial and operational performance, with significant progress in strategic initiatives and a robust financial position. However, challenges remain in refining and chemicals, as well as in biofuel margins.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

Net income of €1.4 billion, up around 60% quarter-on-quarter, demonstrating financial resilience and strong performance in line with expectations.

Upstream Production and Strategic Start-Ups

Initiation of production at Johan Castberg and plans for further start-ups, targeting over 400,000 barrels per day by Q4, setting up for a strong 2026.

Transition Business Developments

Construction of a 200 MW battery in Texas by Plenitude and a new 400,000 ton per year SAF facility at Gela, Sicily, showing significant progress in transition businesses.

Successful Portfolio Management

Achieved €3 billion in valorization and divestment proceeds, with significant cash inflows from increased stakes in Plenitude and Enilive.

Enhanced Financial Position

Balance sheet leverage reduced to 18%, with Pro Forma leverage at 12%, the minimum in company history, indicating strong financial positioning.

Negative Updates

Challenges in Refining and Chemicals

Both segments were loss-making, with refining results affected by weak margins and chemicals facing a challenging scenario in Europe.

Biofuel Margin Impact

Enilive was impacted by the deterioration in biofuel margins year-on-year and lower biorefinery utilization.

Company Guidance

In the recent conference call, Eni provided extensive guidance on its strategic and financial outlook for 2025. Key metrics highlighted include a first-quarter net income of €1.4 billion, marking a 60% increase quarter-on-quarter, and upstream production in line with expectations, supporting a full-year production target of 1.7 million barrels per day. The company reported cash flows before working capital of €3.4 billion, consistent with the full-year guidance of €13 billion at $75 per barrel. Capital expenditures in the quarter were €1.9 billion, slightly below the run-rate of €9 billion. Eni's balance sheet leverage was reduced to 18%, with a pro forma leverage of 12%, reflecting the company's strong financial position. The company also announced plans for a €1.5 billion share buyback program, subject to shareholder approval, and highlighted strategic divestments, including a major dual exploration valorization expected to generate $2.7 billion. Eni confirmed its full-year cash flow from operations guidance of €11 billion and reaffirmed its profitability outlook for key segments such as GGP, Enilive, and Plenitude. The company emphasized its resilience amid market volatility, supported by strategic cost savings initiatives, including €2 billion in cash flow enhancements through CAPEX rescheduling, portfolio optimization, and working capital management.

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.