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Endesa (ELEZY)
OTHER OTC:ELEZY
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Endesa
(OTC:ELEZY)
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Rating:75Outperform
Price Target:
$20.00
â–²(11.67% Upside)
Endesa's overall stock score is driven by strong financial performance and strategic growth initiatives, as highlighted in the earnings call. The technical analysis supports a positive trend, and the valuation metrics are favorable with a good dividend yield. However, high leverage and regulatory challenges pose risks that temper the overall outlook.
Positive Factors
Strong Financial Performance
The significant increase in EBITDA and net income reflects Endesa's strong operational efficiency and profitability, indicating a robust business model capable of sustaining growth.
Strategic Acquisitions and Partnerships
Acquiring full control of Cetasa and entering strategic agreements enhances Endesa's market position and expands its customer base, supporting long-term growth and diversification.
Emission-Free Output
Achieving a high level of emission-free output aligns with global sustainability trends and regulatory demands, positioning Endesa as a leader in clean energy transition.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting Endesa's ability to invest in growth opportunities and manage economic downturns.
Regulatory Framework Challenges
Regulatory challenges in distribution remuneration could hinder necessary investments, affecting Endesa's ability to meet strategic goals and maintain competitive advantage.
Customer Base Reduction
A declining customer base in a competitive market suggests challenges in customer retention and acquisition, potentially impacting revenue stability and market share.
Endesa (ELEZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.24B
Dividend Yield4.06%
Average Volume (3M)2.30K
Price to Earnings (P/E)15.6
Beta (1Y)0.08
Revenue Growth-0.86%
EPS Growth106.28%
CountryUS
Employees8,948
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.38
Shares Outstanding2,117,504,000
10 Day Avg. Volume4,040
30 Day Avg. Volume2,303
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.72
Price to Sales (P/S)1.05
P/FCF Ratio12.82
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue2.09
Enterprise Value/Gross Profit6.85
Enterprise Value/Ebitda8.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Endesa Business Overview & Revenue Model
Company DescriptionEndesa, S.A. (ticker: ELEZY) is a Spanish multinational electric utility company that operates in the generation, distribution, and commercialization of electricity and gas. A subsidiary of the Enel Group, Endesa is primarily focused on the Spanish and Latin American markets. The company offers a wide range of services including electricity generation from various sources, such as renewable energy, natural gas, and nuclear power, as well as gas and electricity supply to residential, commercial, and industrial customers. Endesa is committed to sustainability and transition towards cleaner energy solutions.
How the Company Makes MoneyEndesa generates revenue primarily through the sale of electricity and gas to residential, commercial, and industrial customers. The company operates in three main segments: generation, distribution, and retail. In the generation segment, Endesa earns money by producing electricity from its diverse portfolio of power plants, including renewable sources such as wind and solar. The distribution segment provides regulated income through the management and operation of electricity distribution networks, ensuring that electricity reaches consumers efficiently. The retail segment involves selling electricity and gas to end-users, where pricing strategies and customer acquisition play a significant role in revenue generation. Additionally, partnerships in renewable energy projects and government contracts for infrastructure development contribute to its earnings. Factors such as regulatory frameworks, energy prices, and demand for electricity also significantly influence the company's revenue.
Endesa Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call revealed strong financial growth and strategic achievements, including significant increases in EBITDA and net income, successful acquisitions, and an ongoing share buyback program. However, challenges remain in the regulatory framework for distribution networks and rising ancillary services costs, which impact profitability. The sentiment is cautiously optimistic given the financial performance but tempered by regulatory uncertainties.Q3-2025 Updates
Positive Updates
Strong Financial Performance
EBITDA reached EUR 4.2 billion, marking a 9% increase year-on-year, while net income was EUR 1.7 billion, up by 22% compared to last year. Cash generation was strong with FFO rising to EUR 3.4 billion, a 29% increase year-on-year.
Strategic Acquisitions and Partnerships
Endesa acquired the remaining 62.5% stake in Cetasa, enabling full consolidation of this wind asset portfolio. A strategic agreement with MasOrange was entered to provide combined energy and telecom offers, including the acquisition of EnergÃa Colectiva.
Share Buyback Program Progress
Endesa completed the second tranche of its share buyback program and launched a third tranche with a target of up to EUR 500 million to be executed by February 28th next year.
Emission-Free Output
The consolidation of new renewable capacity allowed Endesa to achieve a 79% emission-free output.
Mainland Demand Growth
Mainland demand increased by 2.4% year-on-year, with Endesa's area demand rising by 4.2%. The service sector demand in the Aragon area saw a 9% increase, mainly due to data center activity.
Negative Updates
Distribution Remuneration Framework Challenges
The current proposal for the distribution remuneration framework does not provide adequate support and incentives for the investment effort required by the National Energy Plan.
Uncertainty in Regulatory Framework
The complex and uncertain regulatory environment for distribution network investments raises concerns about the ability to meet decarbonization and electrification goals.
Impact of Ancillary Services Costs
The rise in ancillary services costs posed a significant challenge, with a net negative impact of approximately EUR 150 million expected by year-end.
Customer Base Reduction
Endesa lost 130,000 regulated customers in Q3, reflecting a continued trend of customer base reduction in a highly competitive market.
Company Guidance
In the recent call, Endesa provided optimistic guidance for fiscal year 2025, highlighting strong financial metrics despite market uncertainties. Key performance indicators included a 9% increase in EBITDA to EUR 4.2 billion and a 22% rise in net income to EUR 1.7 billion. The company also reported a significant 29% increase in cash flow from operations (FFO), reaching EUR 3.4 billion. Endesa detailed progress in strategic initiatives, such as acquiring a 62.5% stake in Cetasa and entering a strategic agreement with MasOrange, which is expected to add over 350,000 energy customers. Furthermore, Endesa continues its share buyback program, launching a third tranche targeting up to EUR 500 million by February 2026. The company also noted improvements in industrial KPIs, such as a 79% emission-free output, though highlighted challenges with the current distribution remuneration framework, which it argues does not adequately support necessary investments. Overall, Endesa remains on track to meet the upper range of its financial forecasts, emphasizing its resilience and commitment to shareholder value.Endesa Financial Statement Overview
Summary
Endesa demonstrates solid revenue growth and profitability, with strong EBIT and EBITDA margins. However, the company faces challenges with high leverage and declining free cash flow growth. While the return on equity is impressive, indicating efficient equity utilization, the high debt levels pose a risk. Overall, Endesa maintains a stable financial position with room for improvement in cash flow management and leverage reduction.Income Statement
Endesa's income statement shows a stable revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.59%. The gross profit margin has decreased from 38.96% in 2024 to 28.33% in TTM, indicating potential cost pressures. However, the net profit margin improved slightly to 9.95% in TTM, reflecting better cost management. The EBIT and EBITDA margins remain strong at 14.94% and 24.59% respectively, showcasing operational efficiency.Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 1.32 in TTM, indicating significant leverage, though it has improved from 1.96 in 2023. The return on equity is robust at 25.53%, suggesting effective use of equity to generate profits. The equity ratio is not directly provided, but the overall leverage remains a concern despite improvements.Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by -3.04% in TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio stands at 0.55, showing adequate cash generation relative to net income. The free cash flow to net income ratio is 0.60, suggesting a moderate conversion of net income into free cash flow.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.96B | 20.93B | 25.07B | 32.54B | 20.52B | 16.64B |
| Gross Profit | 6.70B | 8.16B | 9.35B | 9.15B | 5.16B | 5.07B |
| EBITDA | 5.28B | 5.42B | 3.49B | 5.40B | 3.60B | 3.34B |
| Net Income | 2.31B | 1.89B | 742.00M | 2.54B | 1.44B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 43.56B | 37.34B | 41.28B | 49.96B | 39.97B | 32.06B |
| Cash, Cash Equivalents and Short-Term Investments | 230.30M | 1.81B | 2.11B | 7.14B | 1.58B | 1.58B |
| Total Debt | 12.59B | 10.49B | 13.73B | 18.49B | 10.38B | 4.26B |
| Total Liabilities | 32.01B | 28.29B | 34.08B | 44.20B | 34.42B | 24.60B |
| Stockholders Equity | 10.18B | 8.11B | 7.02B | 5.56B | 5.38B | 7.32B |
Cash Flow | ||||||
| Free Cash Flow | 2.81B | 1.72B | 2.41B | -460.00M | 539.00M | 1.25B |
| Operating Cash Flow | 4.73B | 3.57B | 4.70B | 1.67B | 2.62B | 2.95B |
| Investing Cash Flow | -2.84B | -1.33B | 3.20B | -8.16B | -3.07B | -1.73B |
| Financing Cash Flow | -4.04B | -3.50B | -6.66B | 6.65B | 752.00M | -1.04B |
Endesa Technical Analysis
Neutral
17.91
Price Trends
18.10
Negative
16.99
Positive
15.82
Positive
Market Momentum
0.10
Negative
49.32
Neutral
69.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELEZY, the sentiment is Neutral. The current price of 17.91 is below the 20-day moving average (MA) of 18.07, below the 50-day MA of 18.10, and above the 200-day MA of 15.82, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 49.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $38.24B | 15.63 | 25.93% | 4.06% | -0.86% | 106.28% | |
70 Outperform | $61.92B | 17.11 | 12.85% | 3.25% | 7.66% | 37.42% | |
70 Outperform | $90.83B | 18.36 | 9.92% | 3.61% | 4.80% | 14.44% | |
70 Outperform | $165.55B | 25.37 | 12.48% | 2.84% | 26.96% | -6.80% | |
68 Neutral | $96.04B | 21.63 | 13.06% | 3.40% | 9.40% | -6.05% | |
66 Neutral | $25.65B | 23.54 | 7.65% | 3.13% | 8.42% | 32.48% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
ELEZY
Endesa
18.04
7.67
74.06%
AEP
American Electric Power
115.93
25.57
28.30%
DUK
Duke Energy
117.32
15.15
14.83%
NEE
NextEra Energy
79.49
14.15
21.66%
PPL
PPL
34.67
3.93
12.78%
SO
Southern Co
87.22
7.89
9.95%
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.