Enel SpA Unsponsored ADR (ENLAY) AI Stock Analysis

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Enel SpA Unsponsored ADR

(OTC:ENLAY)

Rating:71Outperform

Price Target:

$10.50

▲(14.13% Upside)

Enel SpA's overall stock score is driven by its strong earnings call performance and positive technical indicators, despite challenges in financial performance due to declining revenue and high leverage. The valuation is attractive with a reasonable P/E ratio and strong dividend yield, supporting the stock's appeal.

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

Market Cap

$93.45B

Dividend Yield5.69%

Average Volume (3M)39.29K

Price to Earnings (P/E)13.6

Beta (1Y)0.20

Revenue Growth-7.90%

EPS Growth24.57%

CountryUS

Employees60,584

SectorUtilities

Sector Strength62

IndustryDiversified Utilities

Share Statistics

EPS (TTM)0.20

Shares Outstanding10,166,680,000

10 Day Avg. Volume16,470

30 Day Avg. Volume39,294

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 Cap1.99

Enterprise Value/Revenue2.31

Enterprise Value/Gross Profit29.80

Enterprise Value/Ebitda7.34

Forecast

1Y Price Target

$10.50

Price Target Upside14.13% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Enel SpA Unsponsored ADR Business Overview & Revenue Model

Company DescriptionEnel SpA Unsponsored ADR (ENLAY) is a publicly traded American Depositary Receipt representing shares of Enel SpA, a multinational energy company headquartered in Rome, Italy. Enel is one of the world's leading integrated electricity and gas operators, active in over 30 countries across five continents. The company is engaged in the generation, distribution, and sale of electricity and gas, with a strong focus on renewable energy sources, including wind, solar, geothermal, and hydroelectric power.

How the Company Makes MoneyEnel SpA generates revenue through several key streams, primarily from the generation, distribution, and sale of electricity and gas. A significant portion of its earnings comes from its diversified energy portfolio, which includes traditional fossil fuel-based power generation and a rapidly growing renewable energy segment. The company sells electricity and gas directly to residential, commercial, and industrial customers, as well as through wholesale markets. Enel's strategic partnerships and investments in renewable energy projects, digitalization of grid infrastructure, and innovative energy solutions contribute to its revenue growth. Additionally, Enel benefits from government incentives and regulatory frameworks supporting the transition to clean energy, which enhances its profitability in the renewable sector.

Enel SpA Unsponsored ADR Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q1-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong financial performance with key achievements in stock performance, revenue growth, and renewable capacity expansion. However, challenges such as currency devaluation and competitive pressures in the retail segment were noted. Overall, the positives significantly outweigh the negatives.

Q1-2025 Updates

Positive Updates

Stock Performance and Dividend

Stock performance increased by 33%, and dividends paid amounted to more than €9 billion, with a Total Shareholder Return (TSR) of 52%.

Revenue and Profit Growth

Group’s profitability continues to be strong with both EBITDA and net income up 2% year-on-year.

Strong Financial Structure

Net debt on EBITDA ratio decreased to 2.5 times versus the 2.7 times of last year, on the back of improved profitability.

Renewable Capacity Expansion

Renewables increased by €100 million versus previous years, with a 70-gigawatt non-emitting capacity resulting in 1-terawatt-hour growth of CO2-free generation.

Positive Cash Flow

Group cash generation continued strong, with an FFO standing at €4.5 billion, more than covering the deployment of organic CapEx.

Negative Updates

Currency Devaluation Impact

Performance in Latin America was affected by negative impact linked to currencies devaluation, especially for the Brazilian real, worth around €80 million.

Retail Challenges in Italy

Prices are now 30% to 40% lower than last year, impacting the Retail segment in Italy, with an expected linear evolution of EBITDA.

Churn Rates and Competition

High churn rates and increasing competition were noted in both Italy and Spain, impacting customer retention and necessitating strategic responses.

Company Guidance

In the first quarter of 2025, Enel achieved several significant milestones, as highlighted in their call. The company's stock performance increased by 33%, and dividends paid amounted to over €9 billion, resulting in a Total Shareholder Return (TSR) of 52%. Enel reported stable growth, with EBITDA and net income both rising by 2% year-on-year. The company has secured 90% of its EBITDA against macro volatility for the planned period and aims for a full-year EBITDA target 30% higher than 2022's results. A 70-gigawatt non-emitting capacity led to a 1-terawatt-hour increase in CO2-free generation, with emission-free production now at 84%. The net debt to EBITDA ratio decreased to 2.5 times from 2.7 times the previous year, indicating improved financial strength. Enel is also progressing with its share buyback program and maintaining a strong focus on sustainable and value-accretive growth.

Enel SpA Unsponsored ADR Financial Statement Overview

Summary

Enel SpA demonstrates operational efficiency and effective use of equity, but faces challenges with declining revenue and high leverage. The company shows potential in cash flow generation, which could support future growth if revenue trends improve.

Income Statement

Positive

Enel SpA shows a mixed performance in its income statement. The company has a strong EBIT and EBITDA margin, indicating operational efficiency. However, the revenue growth rate is negative, reflecting a decline in sales over the TTM period. The net profit margin has decreased slightly, suggesting challenges in maintaining profitability.

Balance Sheet

Neutral

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose risks if not managed properly. However, the return on equity is relatively strong, suggesting effective use of shareholder funds. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

Positive

Cash flow analysis shows positive free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, suggesting good cash conversion. However, the free cash flow to net income ratio is moderate, indicating room for improvement in cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.54B	78.95B	92.88B	142.42B	96.55B	64.23B
Gross Profit	6.25B	32.47B	31.69B	28.71B	30.96B	23.27B
EBITDA	25.37B	22.74B	18.30B	18.18B	13.70B	14.08B
Net Income	6.30B	7.02B	3.44B	5.22B	3.19B	3.62B
Balance Sheet
Total Assets	179.44B	187.14B	195.22B	219.62B	206.94B	163.45B
Cash, Cash Equivalents and Short-Term Investments	7.90B	10.92B	11.33B	24.79B	11.02B	6.37B
Total Debt	65.63B	70.35B	73.56B	87.91B	70.92B	58.66B
Total Liabilities	130.03B	137.97B	150.12B	177.54B	164.60B	121.10B
Stockholders Equity	34.46B	33.73B	25.20B	28.66B	29.65B	28.32B
Cash Flow
Free Cash Flow	4.93B	4.29B	1.85B	-4.57B	-2.13B	1.96B
Operating Cash Flow	12.92B	13.22B	14.62B	8.67B	10.07B	11.51B
Investing Cash Flow	-8.66B	-4.11B	-10.61B	-13.63B	-10.88B	-10.12B
Financing Cash Flow	-10.35B	-7.99B	-8.36B	7.37B	3.78B	-3.97B

Enel SpA Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.20

Price Trends

50DMA

9.19

Positive

100DMA

8.97

Positive

200DMA

8.07

Positive

Market Momentum

MACD

0.01

Positive

RSI

49.45

Neutral

STOCH

20.64

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 9.2 is below the 20-day moving average (MA) of 9.27, above the 50-day MA of 9.19, and above the 200-day MA of 8.07, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 20.64 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

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	79 Outperform	$6.54B	4.95	22.94%	15.50%	-3.27%	-3.44%
ELP	72 Outperform	$6.48B	12.47	9.81%	6.23%	-5.28%	14.50%
ENLAY	71 Outperform	$93.45B	13.55	19.75%	5.69%	-7.90%	24.57%
SRE	71 Outperform	$53.58B	19.91	8.87%	3.12%	0.46%	-11.77%
Sector *	66 Neutral	$17.25B	17.99	5.54%	3.64%	6.63%	11.55%
AES	65 Neutral	$9.12B	9.04	21.17%	5.42%	-3.19%	30.48%
BIP	63 Neutral	$19.87B	1,570.10	1.06%	5.56%	8.86%	―

* Utilities Sector Average

Performance Comparison

ENLAY

Enel SpA Unsponsored ADR

9.20

1.66

22.02%

BIP

Brookfield Infrastructure

30.51

0.29

0.96%

CIG

Companhia Energetica Minas Gerais

2.04

0.14

7.37%

ELP

Companhia Paranaense de Energia Pfd

9.12

1.76

23.91%

SRE

Sempra Energy

81.11

0.79

0.98%

AES

12.93

-2.37

-15.49%

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.Date of analysis: Aug 20, 2025