Enel SpA Unsponsored ADR (ENLAY) AI Stock Analysis

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Enel SpA Unsponsored ADR

(OTC:ENLAY)

73Outperform

Enel SpA's strengths lie in its robust operational efficiency and profitability, strong technical indicators, and positive earnings call outcomes. The company's high leverage and cash conversion challenges present risks, but the strategic financial flexibility and solid dividend policy provide support. Overall, the stock presents a balanced risk-reward profile.

Enel SpA Unsponsored ADR (ENLAY) vs. S&P 500 (SPY)

Market Cap

$80.88B

Dividend Yield2.89%

Average Volume (3M)25.75K

Price to Earnings (P/E)11.1

Beta (1Y)0.29

Revenue Growth-22.53%

EPS Growth97.44%

CountryUS

Employees60,359

SectorUtilities

Sector Strength94

IndustryDiversified Utilities

Share Statistics

EPS (TTM)0.14

Shares Outstanding10,166,680,000

10 Day Avg. Volume77,260

30 Day Avg. Volume25,753

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.78

Price to Cash Flow (P/CF)N/A

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 TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Enel SpA Unsponsored ADR Business Overview & Revenue Model

Company DescriptionEnel SpA Unsponsored ADR (ENLAY) is a global energy company headquartered in Italy, operating in the utilities sector. The company is engaged in the generation, distribution, and sale of electricity and gas. Enel operates across various segments including renewable energy, thermal generation, infrastructure and networks, and retail. It is one of the largest energy companies in the world, with a strong presence in Europe, Latin America, North America, Africa, and Asia.

How the Company Makes MoneyEnel SpA generates revenue primarily through the sale of electricity and gas. The company's key revenue streams include the generation of electricity from both renewable sources such as wind, solar, and hydroelectric, and conventional sources like coal and natural gas. Enel also earns money from the distribution and sale of electricity and gas to residential, commercial, and industrial customers. Additionally, the company invests in infrastructure and networks for energy distribution, which contributes to its earnings. Enel's strategy includes expanding its renewable energy portfolio and enhancing digital transformation, which are significant factors driving its revenue growth. The company has strategic partnerships and collaborations that enhance its capabilities in sustainable energy solutions, further supporting its revenue model.

Enel SpA Unsponsored ADR Financial Statement Overview

Summary

Enel SpA demonstrates robust operational efficiency and cash flow generation, offset by revenue contraction and leverage concerns. The company's ability to maintain solid profitability and cash flow amidst revenue decline highlights its operational resilience but suggests careful monitoring of debt levels is warranted.

Income Statement

Positive

The company shows moderate profitability with a gross profit margin of 22.51% and a net profit margin of 6.00% in TTM. There is a notable decline in revenue from 2023 to TTM by 10.58%. Despite this, EBIT and EBITDA margins remain strong at 17.56% and 29.93%, respectively, indicating operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a stable equity position, with an equity ratio of 18.64% in TTM. However, the debt-to-equity ratio is high at 2.10, indicating potential leverage risks. Return on equity stands at 14.42%, showing a good return on shareholder investments.

Cash Flow

Positive

The company has improved its free cash flow significantly, with a growth rate of 88.52% from 2023 to TTM. The operating cash flow to net income ratio is solid at 2.57, indicating strong cash generation. Free cash flow to net income ratio is also healthy at 0.69.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
94.23B	142.42B	96.55B	64.23B	73.82B
	Gross Profit
33.57B	28.71B	30.96B	23.27B	23.84B
	EBIT
10.83B	11.19B	17.09B	11.76B	15.53B
	EBITDA
19.39B	20.11B	16.40B	14.95B	16.59B
	Net Income Common Stockholders
3.44B	5.22B	3.19B	3.62B	3.48B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.33B	24.79B	11.02B	6.37B	9.60B
	Total Assets
195.22B	219.62B	206.94B	163.45B	171.43B
	Total Debt
73.56B	87.91B	70.92B	58.66B	60.75B
	Net Debt
66.76B	76.86B	62.06B	52.76B	51.72B
	Total Liabilities
150.12B	177.54B	164.60B	121.10B	124.49B
	Stockholders Equity
31.75B	28.66B	29.65B	28.32B	30.38B
Cash Flow		Free Cash Flow
1.85B	-4.57B	-2.13B	1.96B	1.99B
	Operating Cash Flow
14.62B	8.67B	10.07B	11.51B	11.25B
	Investing Cash Flow
-10.61B	-13.63B	-10.88B	-10.12B	-9.12B
	Financing Cash Flow
-8.36B	7.37B	3.78B	-3.97B	306.00M

Enel SpA Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.56

Price Trends

50DMA

7.75

Positive

100DMA

7.42

Positive

200DMA

7.38

Positive

Market Momentum

MACD

0.22

Negative

RSI

63.82

Neutral

STOCH

87.64

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENLAY, the sentiment is Positive. The current price of 8.56 is above the 20-day moving average (MA) of 8.16, above the 50-day MA of 7.75, and above the 200-day MA of 7.38, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 87.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENLAY.

Enel SpA Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	80 Outperform	$6.21B	4.07	28.91%	10.19%	3.39%	46.79%
ELP	77 Outperform	$5.68B	11.86	9.47%	2.66%	-4.45%	9.86%
ENLAY	73 Outperform	$80.88B	11.08	24.21%	2.89%	-22.53%	97.44%
SRE	68 Neutral	$48.68B	16.91	9.55%	3.35%	-18.00%	-7.54%
Sector *	63 Neutral	$8.57B	12.54	6.26%	4.38%	3.11%	-10.24%
BIP	54 Neutral	$18.84B	2,675.93	0.96%	5.69%	17.33%	-92.62%
AES	52 Neutral	$7.15B	4.25	39.65%	6.90%	-3.14%	563.59%

* Utilities Sector Average

Performance Comparison

ENLAY

Enel SpA Unsponsored ADR

8.59

2.18

34.01%

BIP

Brookfield Infrastructure

29.17

3.46

13.46%

CIG

Companhia Energetica Minas Gerais

1.88

0.20

11.90%

ELP

Companhia Paranaense de Energia Pfd

8.06

1.29

19.05%

SRE

Sempra Energy

75.60

5.57

7.95%

AES

10.19

-6.87

-40.27%

Enel SpA Unsponsored ADR Earnings Call Summary

Earnings Call Date:Mar 13, 2025

(Q4-2024)

% Change Since: 12.63%|

Next Earnings Date:May 08, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong financial performance for 2024, with record EBITDA and net income growth, improved financial flexibility, and a robust dividend and share buyback program. Despite some challenges related to currency devaluation in LATAM, retail market conditions, and political risks, the overall sentiment is positive due to the company's strategic achievements and forward-looking plans.

Q4-2024 Updates

Positive Updates

Record EBITDA and Net Income Growth

EBITDA reached EUR22.8 billion, landing at the top of the guidance range, and Net Income increased by 10% year-over-year to EUR7.1 billion.

Dividend and Share Buyback Program

Proposal for a dividend per share of EUR0.47 for 2024, implying a 70% payout and a share buyback program of up to EUR3.5 billion.

Improved Financial Flexibility

Net debt EBITDA ratio lowered to 2.4 from 2.7 times last year, providing over EUR10 billion additional financial flexibility.

Successful Capital Allocation and Investments

Investments deployed with networks accounting for more than 50%, improving operating KPIs and reaching a RAB of more than EUR45 billion.

Efficiency Savings Achieved

EUR800 million savings achieved compared to 2022, more than halfway to the plan target of EUR1.5 billion.

Strong Integrated Business Performance

Integrated business EBITDA increased by EUR1.9 billion year-over-year, driven by renewables recovering EUR2.7 billion.

Negative Updates

Currency Devaluation Impact in LATAM

LATAM EBITDA stabilization was offset by local currencies devaluation, impacting the period by EUR0.2 billion.

Challenging Retail Market Conditions

Retail EBITDA reflected downward price campaign in Italy, with churn rates initially high but expected to normalize.

Political and Regulatory Risks

Potential impacts from political measures in Italy, and regulatory discussions in South America and the U.S. could affect operations.

Company Guidance

During the full year 2024 results presentation, Enel's management provided detailed guidance on several financial metrics. The company proposed a dividend per share of EUR 0.47, implying a 70% payout and a 7% dividend yield at the current price, while maintaining a floor of EUR 0.46 per share. The Board also approved a share buyback program for up to 500 million shares, valued at EUR 3.5 billion. Enel reported an EBITDA of EUR 22.8 billion, reaching the top of their guidance range, and a net income of EUR 7.1 billion, a 10% increase year-on-year. The net debt to EBITDA ratio improved to 2.4x from 2.7x the previous year, indicating enhanced balance sheet flexibility. Operating KPIs showed progress, with RAB exceeding EUR 45 billion and renewable production increasing by 8% year-on-year, while emission-free energy stood at 83%. The company's efficiency program achieved EUR 800 million in savings, progressing towards the EUR 1.5 billion target. Additionally, Enel's capital allocation strategy focused on maximizing returns, with investments in networks accounting for over 50% of total investments, up 14% from the previous year.

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.