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Endesa S.A. Unsponsored ADR (ELEZY)
:ELEZY
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Endesa
(OTC:ELEZY)
Rating:76Outperform
Price Target:―
Endesa (ELEZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.20B
Dividend Yield2.07%
Average Volume (3M)289.00
Price to Earnings (P/E)14.2
Beta (1Y)0.17
Revenue Growth-16.39%
EPS Growth154.66%
CountryUS
Employees8,948
SectorUtilities
Sector Strength84
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.29
Shares Outstanding2,117,504,000
10 Day Avg. Volume0
30 Day Avg. Volume289
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.66
Price to Sales (P/S)0.00
P/FCF Ratio-20.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Endesa Business Overview & Revenue Model
Company DescriptionEndesa, S.A. engages in the generation, distribution, and sale of electricity primarily in Spain and Portugal. The company generates electricity from various energy sources, such as hydroelectric, nuclear, thermal, wind, and solar. As of December 31, 2021, it distributed electricity to approximately 21 million customers covering a total area of approximately 195,794 square kilometers. The company's distribution and transmission networks consist of 316,506 kilometers. It also sells energy, as well as provides energy related commercial services. In addition, the company engages in installation, maintenance, and repair of home electrical, heating, and air conditioning; trading operations; and investment holding business. Further, it is involved in the supply of electricity and gas to other European markets, including Germany, France, and the Netherlands. Additionally, the company engages in the electric mobility, demand management, and energy storage; exploitation of primary energy resources; provision of industrial services in the areas of telecommunications, water, and gas; electricity transmission business; management, operation, and administration of nuclear plants; issuance of debt instruments; and provision of consultancy and civil engineering services. The company was formerly known as Empresa Nacional de Electricidad, S.A. and changed its name to Endesa, S.A. in June 1997. The company was incorporated in 1944 and is headquartered in Madrid, Spain. Endesa, S.A. is a subsidiary of ENEL Iberia, S.L.U.
How the Company Makes MoneyEndesa generates revenue through several key streams. The primary source of income is the generation and sale of electricity to residential, commercial, and industrial customers. The company operates a diverse portfolio of power generation assets, including nuclear, hydroelectric, coal, and renewable energy sources such as wind and solar. Additionally, Endesa earns money from the distribution of electricity through its extensive network infrastructure. The retail sale of natural gas also contributes to its revenue. Endesa's earnings are further supported by its engagement in energy trading activities and offering energy efficiency services to its clients. Strategic partnerships and the integration of renewable energy initiatives, in line with Enel's global strategy, also play a significant role in driving Endesa's financial performance.
Endesa Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 4.04%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
Endesa reported strong financial performance with significant EBITDA growth and successful expansion in renewable capacity. However, challenges such as the recent blackout, customer attrition, and increased financial debt present notable concerns. Despite these challenges, the company's solid cash generation and strategic initiatives, like the share buyback program, indicate a positive outlook.Q1-2025 Updates
Positive Updates
Strong Financial Performance in Q1 2025
EBITDA reached €1.4 billion, a 33% increase compared to the previous year. Net ordinary income was approximately €600 million, doubling last year's figure.
Successful Acquisition and Renewable Expansion
Endesa completed the acquisition of Acciona's hydroelectric assets, adding 34 hydro plants and increasing future hydro output by over 20%. Total renewable capacity is now close to 11 gigawatts.
Robust Cash Generation
FFO reached an outstanding €1.2 billion, significantly higher than the previous year, reflecting strong EBITDA growth and favorable working capital dynamics.
Share Buyback Program Initiated
A share buyback program was announced, with an initial tranche of up to €500 million to be executed in 2025, demonstrating confidence in future growth.
Positive Developments in Gas Margin
Total gas sales increased by 3%, with a sound improvement in gas margin backed by positive previous hedgings.
Negative Updates
Impact of Blackout and Investigation
Endesa faced a significant blackout, currently under investigation. The incident could lead to potential claims, compensation processes, and fines from authorities.
Challenges in Nuclear Energy Strategy
Uncertainty around government decisions on nuclear plant life extension and the need for reduced taxation impact Endesa's nuclear strategy.
Volatility in Commodity and Spot Prices
TTF spot prices increased by 70% on average, with pool prices almost doubling compared to the first quarter of 2024, indicating significant market volatility.
Customer Attrition in Electricity Market
Endesa lost approximately 170,000 electricity customers in the first quarter, raising concerns about market competitiveness and customer retention.
Increased Net Financial Debt
Net financial debt rose to €10.2 billion, a 9% increase from the previous year, partly due to the acquisition of Acciona's hydro assets.
Company Guidance
During the call, Endesa reported a strong financial performance for the first quarter of 2025. Key metrics included a 33% increase in EBITDA to €1.4 billion, driven by the liberalized business and the absence of a 1.2% levy from the previous year, and net ordinary income of approximately €600 million, doubling last year’s figure. The company also completed a €0.9 billion acquisition of Acciona's hydroelectric assets, expanding its hydro capacity by 626 megawatts, and launched a share buyback program for up to €2 billion through 2027. Additionally, Endesa's financial health was highlighted by a 46% FFO to net debt ratio, a net financial debt-to-EBITDA ratio of 1.8 times, and a stable gross financial debt. The company also emphasized its capital allocation strategy and the need for significant grid investment to support demand growth and renewable integration.Endesa Financial Statement Overview
Summary
Endesa's financial performance reflects a stable but challenging environment. The income statement shows operational efficiency but requires growth in revenue and net profitability. The balance sheet is strong with zero debt and increased equity, providing financial stability. Cash flow management needs attention, particularly the declining free cash flow, to ensure sustainable growth and investment capacity.Income Statement
Endesa's income statement shows a mixed performance with a declining revenue trend from 2022 to 2024. The gross profit margin improved, reaching approximately 38.97% in 2024, indicating efficient cost management. However, net profit margin decreased to about 9.02% in 2024, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins reflect operational efficiency with 2024 values at 14.67% and 25.89% respectively, but they have experienced fluctuations over the years.65
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a significant increase in stockholders' equity to $8.11 billion by 2024. The company has completely eliminated its debt by 2024, improving the debt-to-equity ratio from previous years. The equity ratio in 2024 stands at 21.72%, indicating a stable financial structure. However, the return on equity (ROE) has shown a declining trend, reaching 23.28% in 2024, highlighting potential challenges in generating returns.75
Positive
Cash Flow
Cash flow analysis indicates a stable operating cash flow, with a slight decrease in 2024 to $3.57 billion. The free cash flow has decreased to $1.72 billion in 2024, with a negative growth rate from 2023, raising concerns about cash availability for investment. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion, while the free cash flow to net income ratio indicates potential cash flow concerns.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 21.89B | 20.93B | 25.07B | 32.54B | 20.52B | 16.64B | Gross Profit |
| 6.36B | 8.16B | 9.35B | 9.15B | 5.16B | 5.07B | EBIT |
| 2.91B | 3.07B | 1.65B | 6.12B | 1.96B | 1.89B | EBITDA |
| 4.54B | 5.42B | 3.32B | 5.40B | 3.60B | 3.34B | Net Income Common Stockholders |
| 1.09B | 1.89B | 742.00M | 2.54B | 1.44B | 1.39B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.56B | 1.81B | 2.11B | 7.14B | 1.58B | 1.58B | Total Assets |
| 38.96B | 37.34B | 41.28B | 49.96B | 39.97B | 32.06B | Total Debt |
| 6.83B | 0.00 | 13.73B | 18.49B | 10.38B | 4.26B | Net Debt |
| 4.35B | -840.00M | 11.62B | 17.62B | 9.68B | 3.85B | Total Liabilities |
| 30.70B | 28.29B | 34.08B | 44.20B | 34.42B | 24.60B | Stockholders Equity |
| 8.09B | 8.11B | 7.02B | 5.56B | 5.38B | 7.32B |
| Cash Flow | Free Cash Flow | ||||
| 1.61B | 1.72B | 2.41B | -460.00M | 539.00M | 1.25B | Operating Cash Flow |
| 3.16B | 3.57B | 4.70B | 1.67B | 2.62B | 2.95B | Investing Cash Flow |
| -479.00M | -1.33B | 3.20B | -8.16B | -3.07B | -1.73B | Financing Cash Flow |
| -1.90B | -3.50B | -6.66B | 6.65B | 752.00M | -1.04B |
Endesa Technical Analysis
Positive
15.71
Price Trends
14.67
Positive
13.16
Positive
11.87
Positive
Market Momentum
0.26
Positive
64.74
Neutral
64.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELEZY, the sentiment is Positive. The current price of 15.71 is above the 20-day moving average (MA) of 15.32, above the 50-day MA of 14.67, and above the 200-day MA of 11.87, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 64.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELEZY.
Endesa Risk Analysis
Endesa disclosed 22 risk factors in its most recent earnings report. Endesa reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Endesa Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $33.20B | 14.21 | 26.12% | 2.07% | -16.39% | 154.66% | |
72 Outperform | $91.16B | 19.49 | 9.48% | 3.56% | 5.02% | 45.08% | |
72 Outperform | $23.47B | 21.46 | 8.69% | 4.38% | 7.92% | 1.54% | |
71 Outperform | $24.97B | 25.22 | 7.00% | 3.17% | 5.62% | 30.02% | |
69 Neutral | $55.03B | 19.85 | 10.41% | 3.61% | 4.20% | -3.64% | |
69 Neutral | $98.42B | 21.47 | 14.01% | 3.28% | 9.58% | 8.02% | |
64 Neutral | $8.62B | 10.39 | 4.24% | 4.63% | 4.07% | -13.04% |
* Utilities Sector Average
Performance Comparison
ELEZY
Endesa
15.71
6.16
64.50%
AEP
American Electric Power
102.90
18.33
21.67%
DUK
Duke Energy
116.86
19.72
20.30%
FE
FirstEnergy
40.34
3.65
9.95%
PPL
PPL
33.89
6.86
25.38%
SO
Southern Co
90.35
15.22
20.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.