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Endesa (ELEZY)
OTHER OTC:ELEZY
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Endesa
(OTC:ELEZY)
Rating:71Outperform
Price Target:
$16.50
â–²(9.27% Upside)
Endesa (ELEZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.57B
Dividend Yield4.85%
Average Volume (3M)7.89K
Price to Earnings (P/E)13.6
Beta (1Y)0.16
Revenue Growth-4.11%
EPS Growth222.08%
CountryUS
Employees8,948
SectorUtilities
Sector Strength62
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.25
Shares Outstanding2,117,504,000
10 Day Avg. Volume407
30 Day Avg. Volume7,892
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit6.28
Enterprise Value/Ebitda7.70
Forecast
1Y Price Target
$16.50Price Target Upside9.27% Upside
Rating ConsensusModerate Buy
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 makes money through a diversified revenue model primarily focused on the generation, distribution, and commercialization of electricity. The company's key revenue streams include the sale of electricity generated from its power plants, which encompass both renewable sources like wind and solar, and traditional sources like coal and gas. Endesa also earns revenue through its extensive electricity distribution network, where it charges fees for the delivery of electricity to residential, commercial, and industrial customers. Additionally, the company engages in the sale of natural gas and offers value-added energy services, such as energy efficiency consulting and electric mobility solutions. Strategic partnerships, regulatory frameworks, and government incentives for renewable energy projects also play significant roles in bolstering its earnings.
Endesa Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and cash generation, driven by increased EBITDA and net income. However, significant challenges remain, particularly concerning regulatory issues, customer churn, and network investment constraints.Q2-2025 Updates
Positive Updates
EBITDA and Net Income Growth
EBITDA increased by 12% year-on-year to EUR 2.7 billion, and net income rose by 30% to EUR 1 billion, indicating strong profitability.
Cash Generation and Shareholder Returns
Cash generation was strong, with FFO doubling compared to the same period last year. Approximately 40% of the EUR 500 million share buyback program was executed by the end of June.
Renewable Capacity Expansion
Endesa added 0.7 gigawatts of new renewable capacity, bringing the total to nearly 11 gigawatts. As a result, 79% of the mainland generation mix is now emission-free.
Demand Growth
Mainland electricity demand showed a steady recovery, with a 2.7% growth year-on-year, while Endesa's figure climbed to 4.7%.
Strong Gas Margin Performance
The gas margin showed a strong improvement, driven by favorable previous hedging positions and price resilience in the B2C segment.
Negative Updates
Impact of Ancillary Service Costs
The TSO's post-blackout management led to a spike in ancillary services costs, reaching levels of EUR 26 per megawatt-hour, negatively impacting Endesa.
Regulatory Concerns
The proposed regulatory framework for grid investment is seen as insufficient to meet Spain's decarbonization targets, with concerns about low rates of return and structural limitations.
Customer Base Challenges
Endesa lost 350,000 customers year-to-date due to high competition and customer churn, impacting its ability to capitalize on rising power demand.
Renewable Output Decline
The contribution from the renewable business decreased by 7%, mainly due to lower wind and solar output.
Network Investment Constraints
About 80% of Endesa's medium and high-voltage connection requests in 2024 had to be rejected due to existing network limitations.
Company Guidance
During the call, Endesa reported strong financial and operational performance for the first half of 2025, underscored by a 12% year-on-year increase in EBITDA to EUR 2.7 billion and a 30% rise in net income to EUR 1 billion. The company has executed approximately 40% of its EUR 500 million share buyback program, reflecting its commitment to shareholder value. Investments amounting to over EUR 900 million were made to enhance core business operations, focusing on energy transition, including the addition of 0.7 gigawatts of new renewable capacity. Despite facing challenges from increased ancillary services costs due to the April blackout, the company's free power margin stood at EUR 53 per megawatt-hour. Endesa remains optimistic about achieving the upper end of its full-year guidance, buoyed by robust cash generation, with funds from operations (FFO) doubling compared to the previous year. The company also highlighted ongoing regulatory discussions concerning the remuneration framework for network investments and emphasized the need for regulatory support to continue Spain's energy transition.Endesa Financial Statement Overview
Summary
Endesa demonstrates a solid financial position with strong revenue growth and profitability improvements. The company has managed to enhance its leverage and cash flow generation, although some cost pressures remain. Overall, Endesa is on a positive trajectory with a balanced approach to growth and stability.Income Statement
Endesa shows a strong gross profit margin of 28.33% in TTM, indicating efficient cost management. The net profit margin improved to 9.95% in TTM, reflecting enhanced profitability. Revenue growth rate in TTM is robust at 54.9%, a significant recovery from previous declines. However, the EBIT and EBITDA margins have slightly decreased, suggesting potential cost pressures.75
Positive
Balance Sheet
The debt-to-equity ratio has improved to 1.32 in TTM, indicating better leverage management compared to past years. Return on equity is strong at 25.53%, showcasing effective use of equity. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to asset financing.65
Positive
Cash Flow
Free cash flow growth is impressive at 401.4% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.55, reflecting good cash conversion. However, the free cash flow to net income ratio, while improved, suggests room for further enhancement in cash efficiency.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.61B | 20.93B | 25.07B | 32.54B | 20.52B | 16.64B |
| Gross Profit | 6.71B | 8.16B | 9.35B | 9.15B | 5.16B | 5.07B |
| EBITDA | 5.47B | 5.42B | 3.32B | 5.40B | 3.60B | 3.34B |
| Net Income | 2.13B | 1.89B | 742.00M | 2.54B | 1.44B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 37.01B | 37.34B | 41.28B | 49.96B | 39.97B | 32.06B |
| Cash, Cash Equivalents and Short-Term Investments | 678.00M | 1.81B | 2.11B | 7.14B | 1.58B | 1.58B |
| Total Debt | 10.90B | 10.49B | 13.73B | 18.49B | 10.38B | 4.26B |
| Total Liabilities | 27.83B | 28.29B | 34.08B | 44.20B | 34.42B | 24.60B |
| Stockholders Equity | 8.28B | 8.11B | 7.02B | 5.56B | 5.38B | 7.32B |
Cash Flow | ||||||
| Free Cash Flow | 2.90B | 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 | -2.71B | -1.33B | 3.20B | -8.16B | -3.07B | -1.73B |
| Financing Cash Flow | -3.75B | -3.50B | -6.66B | 6.65B | 752.00M | -1.04B |
Endesa Technical Analysis
Positive
15.10
Price Trends
15.19
Negative
14.98
Positive
13.06
Positive
Market Momentum
-0.02
Positive
47.80
Neutral
12.00
Positive
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 15.1 is below the 20-day moving average (MA) of 15.25, below the 50-day MA of 15.19, and above the 200-day MA of 13.06, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 12.00 is Positive, 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $58.10B | 15.91 | 13.03% | 3.44% | 5.84% | 36.33% | |
73 Outperform | $93.99B | 19.76 | 9.60% | 3.48% | 4.07% | 9.94% | |
72 Outperform | $147.56B | 24.96 | 11.84% | 3.12% | 18.80% | -6.73% | |
71 Outperform | $31.57B | 13.65 | 25.93% | 4.85% | -4.11% | 222.08% | |
71 Outperform | $26.99B | 27.44 | 6.96% | 2.95% | 6.62% | 17.35% | |
66 Neutral | $17.25B | 17.99 | 5.54% | 3.64% | 6.63% | 11.55% | |
65 Neutral | $101.06B | 23.72 | 12.89% | 3.18% | 8.53% | -7.53% |
* Utilities Sector Average
Performance Comparison
ELEZY
Endesa
15.10
4.70
45.19%
AEP
American Electric Power
108.11
8.13
8.13%
DUK
Duke Energy
120.61
7.63
6.75%
NEE
NextEra Energy
70.90
-7.84
-9.96%
PPL
PPL
35.96
4.54
14.45%
SO
Southern Co
91.78
5.36
6.20%
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.