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Enel SpA Unsponsored ADR (ENLAY)
OTHER OTC:ENLAY
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Enel SpA Unsponsored ADR
(OTC:ENLAY)
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Rating:71Outperform
Price Target:
$11.00
▲(7.53% Upside)
Enel SpA's overall stock score reflects strong financial performance and positive earnings call insights, particularly in profitability and sustainability. The fair valuation and attractive dividend yield add to its appeal. However, technical indicators suggest a lack of strong momentum, and challenges with revenue growth and high leverage remain concerns.
Positive Factors
Environmental Sustainability
Enel's commitment to sustainability with 84% emission-free production strengthens its market position in the growing clean energy sector.
Cash Flow Generation
Improved cash flow generation enhances Enel's ability to fund operations and invest in growth opportunities, supporting long-term financial health.
EBITDA and Net Income Growth
Steady growth in EBITDA and net income indicates robust operational performance and effective cost management, ensuring sustained profitability.
Negative Factors
High Leverage
Significant leverage increases financial risk and limits flexibility, potentially impacting Enel's ability to navigate economic fluctuations.
Revenue Decline
Declining revenue growth poses a challenge to maintaining profitability and market share, necessitating strategic efforts to stabilize income streams.
Regulatory Challenges in Spain
Regulatory hurdles in Spain could hinder Enel's investment plans, affecting its ability to capitalize on energy transition opportunities in the region.
Enel SpA Unsponsored ADR (ENLAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.88B
Dividend Yield5.07%
Average Volume (3M)34.66K
Price to Earnings (P/E)15.6
Beta (1Y)0.06
Revenue Growth-1.41%
EPS Growth28.43%
CountryUS
Employees60,584
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.21
Shares Outstanding10,166,680,000
10 Day Avg. Volume80,605
30 Day Avg. Volume34,663
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)2.12
Price to Sales (P/S)0.91
P/FCF Ratio16.68
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue2.17
Enterprise Value/Gross Profit8.96
Enterprise Value/Ebitda6.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.83
Revenue Forecast (FY)$93.45B
Enel SpA Unsponsored ADR Business Overview & Revenue Model
Company DescriptionEnel SpA operates as an integrated electricity and gas operator worldwide. The company generates, transmits, distributes, purchases, transports, and sells electricity; transports and markets natural gas; supplies LNG; designs, develops, constructs, operates, manages, and maintains generation plants and distribution grids; and designs, constructs, and operates merchant lines. It is also involved in various activities, such as energy and infrastructure engineering; research and development in sciences and engineering; the cogeneration of electricity and heat; the construction and management of manages port infrastructure; product, plant, and equipment certification; mining; finance; energy products marketing; trading; and fuel trading and logistics operations. In addition, the company engages in construction and management of LNG regasification infrastructure; desalinization and water supply; electricity system monitoring; and optical fiber network operation activities. Further, it provides testing, inspection, and certification; engineering and consulting; legal; metering, remote control, and connectivity through power line communication; business consulting, administrative, management consulting, and corporate planning; civil, mechanical, and electrical engineering; personnel administration, information technology, real estate, and business; electronic plant installation, maintenance, and repairing; and security services. Additionally, the company offers water systems; public lighting systems and services; electric mobility; and environmental studies services. It operates renewable, wind, thermal, hydroelectric, nuclear, photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.
How the Company Makes MoneyEnel SpA generates revenue through a diversified business model that includes electricity generation, distribution, and sales of electricity and natural gas. Key revenue streams include the sale of electricity from its extensive portfolio of power plants, which encompasses both renewable sources (such as wind, solar, and hydroelectric) and conventional generation methods. The company also earns income from its regulated distribution networks, where it charges customers for delivering electricity and gas. Enel’s retail operations contribute significantly to its revenues by providing energy solutions to residential, commercial, and industrial customers. Additionally, the company benefits from partnerships with governments and private entities to develop renewable energy projects and smart grid technologies, enhancing its position in the rapidly evolving energy market.
Enel SpA Unsponsored ADR Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in EBITDA and net income, improved financial metrics, and strong performance in environmental sustainability and efficiency. However, challenges related to regulatory issues in Spain and resource availability in Italy were noted. Overall, the positive aspects outweigh the challenges.Q3-2025 Updates
Positive Updates
Steady Growth in EBITDA and Net Income
EBITDA reached EUR 17.3 billion and net income reached EUR 5.7 billion, showing continuous improvement and steady growth.
Improved EBITDA to Net Income Conversion
The conversion ratio of EBITDA to net income is expected to achieve 30% by year-end, 5 percentage points above the 2020-2022 average.
Interim Dividend and Share Buyback Program
An interim dividend of 50% of the guidance floor will be distributed in January, with a final payout of up to 70% of net ordinary income. A EUR 1 billion share buyback has been executed.
Environmental Sustainability Achievements
Emission-free production reached 84% of total generation, highlighting the company's commitment to environmental sustainability.
Positive Cash Flow in the U.S.
The U.S. operations generated positive cash flow for the first time since the beginning of operations.
Remarkable Efficiency Achievements
80% of the 2027 efficiency target has been reached, showing significant progress in efficiency improvements.
Strong Performance in Spain and Colombia
Strong operating delivery in Spain and Colombia contributed significantly to the company's results.
Data Center Business Opportunity
A dedicated pipeline of industrial sites for data centers is being developed, offering permitted and ready-to-use energy network connections.
Negative Updates
Challenges in Italy
Lower water resource availability affected the results of hydroelectric plants in Italy.
Regulatory Concerns in Spain
Regulatory changes in Spain may not effectively incentivize the level of investments needed for energy transition.
High Retail Churn in Spain
Spain experienced a 25% churn rate in the retail market, posing a challenge to customer retention.
Company Guidance
During the call, Enel provided guidance highlighting their strategic focus and financial performance. The company reported a steady growth in EBITDA and net income, reaching EUR 17.3 billion and EUR 5.7 billion, respectively. The guidance emphasized a strong focus on European markets, which now contribute 75% of the group EBITDA and 90% of net income. Enel expects the EBITDA to net income conversion ratio to reach 30% by year-end, which is 5 percentage points above the 2020-2022 average. The interim dividend distribution is set for January, equating to 50% of the guidance floor, with the final payout in July up to 70% of net ordinary income. Enel's commitment to environmental sustainability was also highlighted, with emission-free production accounting for 84% of total generation. The company confirmed its expectation to close the year with ordinary EBITDA aligned to the guidance and net income slightly above the top of the guidance range. Despite a EUR 1 billion share buyback, net debt to EBITDA remained steady at 2.5x. Enel also detailed its capital allocation strategy, including a EUR 6 billion share buyback plan spanning Enel SpA and its subsidiaries.Enel SpA Unsponsored ADR Financial Statement Overview
Summary
Enel SpA demonstrates strong profitability and cash flow generation, with solid EBIT and EBITDA margins. However, declining revenue growth and high leverage pose challenges. The company needs to focus on revenue stabilization and managing debt levels for sustained financial health.Income Statement
Enel SpA's income statement shows a mixed performance. The TTM data reveals a gross profit margin of 24.2% and a net profit margin of 8.8%, indicating solid profitability. However, the revenue growth rate has been negative, with a decline of 4.1% in the TTM period. Despite this, the company maintains strong EBIT and EBITDA margins of 22.4% and 33.4%, respectively, suggesting efficient operations. The overall trajectory shows a need for revenue stabilization to sustain profitability.72
Positive
Balance Sheet
The balance sheet indicates a high debt-to-equity ratio of 1.96 in the TTM period, reflecting significant leverage. Return on equity stands at 18.2%, showcasing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing. While the company is generating returns, the high leverage poses potential risks if not managed carefully.65
Positive
Cash Flow
Cash flow analysis reveals a positive free cash flow growth rate of 14.9% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 2.19, demonstrating strong cash flow relative to earnings. However, the free cash flow to net income ratio is 0.43, suggesting that a significant portion of earnings is not translating into free cash flow. Overall, cash flow management appears stable, but there is room for improvement in converting earnings to free cash flow.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 77.21B | 78.95B | 92.88B | 142.42B | 96.55B | 64.23B |
| Gross Profit | 18.70B | 32.47B | 31.69B | 28.71B | 30.96B | 23.27B |
| EBITDA | 27.66B | 22.74B | 18.30B | 18.18B | 13.70B | 14.08B |
| Net Income | 6.69B | 7.02B | 3.44B | 5.22B | 3.19B | 3.62B |
Balance Sheet | ||||||
| Total Assets | 213.07B | 187.14B | 195.22B | 219.62B | 206.94B | 163.45B |
| Cash, Cash Equivalents and Short-Term Investments | 5.54B | 10.92B | 11.33B | 24.79B | 11.02B | 6.37B |
| Total Debt | 90.90B | 70.35B | 73.56B | 87.91B | 70.92B | 58.66B |
| Total Liabilities | 164.23B | 137.97B | 150.12B | 177.54B | 164.60B | 121.10B |
| Stockholders Equity | 35.29B | 33.73B | 25.20B | 28.66B | 29.65B | 28.32B |
Cash Flow | ||||||
| Free Cash Flow | 5.66B | 4.29B | 1.85B | -4.57B | -2.13B | 1.96B |
| Operating Cash Flow | 14.65B | 13.22B | 14.62B | 8.67B | 10.07B | 11.51B |
| Investing Cash Flow | -9.14B | -4.11B | -10.61B | -13.63B | -10.88B | -10.12B |
| Financing Cash Flow | -8.63B | -7.99B | -8.36B | 7.37B | 3.78B | -3.97B |
Enel SpA Unsponsored ADR Technical Analysis
Positive
10.23
Price Trends
10.38
Positive
9.95
Positive
9.40
Positive
Market Momentum
0.15
Negative
61.85
Neutral
76.18
Neutral
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 10.23 is below the 20-day moving average (MA) of 10.52, below the 50-day MA of 10.38, and above the 200-day MA of 9.40, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 76.18 is Neutral, 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $109.88B | 15.63 | 22.43% | 5.07% | -1.41% | 28.43% | |
70 Outperform | $6.32B | 8.00 | 13.35% | 12.98% | -0.38% | -53.94% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $9.97B | 8.53 | 23.02% | 5.06% | -1.55% | 12.83% | |
61 Neutral | $59.60B | 28.12 | 7.10% | 2.91% | 9.07% | -28.58% | |
48 Neutral | $16.08B | 54.63 | 6.28% | 4.92% | 8.14% | ― |
* Utilities Sector Average
ENLAY
Enel SpA Unsponsored ADR
10.78
3.65
51.14%
BIP
Brookfield Infrastructure
34.83
5.20
17.55%
CIG
Companhia Energetica Minas Gerais
1.98
0.48
32.26%
SRE
Sempra Energy
91.57
9.09
11.02%
AES
AES
14.44
3.30
29.62%
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.