Endesa (ELEZY) AI Stock Analysis

• Market Cap: $32.57B
• Dividend Yield: 3.72%
• Average Volume (3M): 8.03K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.16
• Revenue Growth: -4.11%
• EPS Growth: 222.08%
• Country: US
• Employees: 8,948
• Sector: Utilities
• Sector Strength: 87
• Industry: Regulated Electric
• EPS (TTM): 0.25
• Shares Outstanding: 2,117,504,000
• 10 Day Avg. Volume: 22,552
• 30 Day Avg. Volume: 8,033
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 6.28
• Enterprise Value/Ebitda: 7.70
• 1Y Price Target: $17.00
• Price Target Upside: 10.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $17.00 ▲(10.46% Upside)

Endesa's strong financial performance and promising earnings call are the primary drivers of its score. The company's focus on renewable energy and robust cash generation are significant strengths. While technical indicators suggest caution, the stock's reasonable valuation and attractive dividend yield provide a solid investment case.

Endesa Business Overview & Revenue Model

Company Description

Endesa, 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 Money

Endesa 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 Financial Statement Overview

Summary

Endesa maintains a stable financial position with strong profitability and improving cash flow metrics. Despite a relatively high leverage, the improvement in debt-to-equity ratio and strong return on equity signal effective financial management. Revenue growth and robust cash flow generation reflect operational efficiency, though operational margins and debt levels should be monitored.

Income Statement

Endesa shows strong profitability with a stable gross profit margin of 32.2% for TTM, and a net profit margin of 10.1%. The company has demonstrated resilience with a notable TTM revenue growth rate of 2.68% following a previous decline. However, the EBIT margin has slightly decreased to 15.6%, indicating some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability; the debt-to-equity ratio has improved to 0.78, indicating effective debt management. The return on equity stands at 24.5%, showcasing robust profitability. However, the equity ratio of 23.8% suggests that the company is still relatively leveraged, posing potential risks.

Cash Flow

Endesa's cash flow position is strong, with a healthy free cash flow to net income ratio of 1.28 for TTM, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio is 2.13, underscoring solid cash flow coverage. The free cash flow growth rate of 62.15% from the previous year highlights significant improvement in liquidity.

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

• Technical Analysis Sentiment: Positive
• Last Price: 15.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.39 is above the 20-day moving average (MA) of 14.94, above the 50-day MA of 15.19, and above the 200-day MA of 12.68, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 59.77 is Neutral, neither overbought nor oversold. The STOCH value of 98.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELEZY.

Endesa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEP	74 Outperform	$60.36B	16.53	13.03%	3.30%	5.84%	36.33%
ELEZY	72 Outperform	$32.57B	14.07	25.93%	3.72%	-4.11%	222.08%
FE	72 Outperform	$25.21B	19.27	10.33%	3.99%	6.44%	49.07%
PPL	71 Outperform	$27.42B	27.88	6.96%	2.86%	6.62%	17.35%
SO	71 Outperform	$103.36B	24.26	12.89%	3.08%	8.53%	-7.53%
DUK	66 Neutral	$96.63B	20.32	9.60%	3.38%	4.07%	9.94%
Sector *	62 Neutral	C$8.27B	3.54	-16.63%	4.58%	0.42%	-203.16%