Endesa SA (ELE) AI Stock Analysis

• Market Cap: €28.11B
• Dividend Yield: 4.99%
• Average Volume (3M): 726.06K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.55
• Revenue Growth: -4.53%
• EPS Growth: 221.40%
• Country: ES
• Employees: 8,948
• Sector: Utilities
• Sector Strength: 72
• Industry: Regulated Electric
• EPS (TTM): 0.48
• Shares Outstanding: 1,058,752,100
• 10 Day Avg. Volume: 537,168
• 30 Day Avg. Volume: 726,058
• PEG Ratio: 0.08
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 12.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €25.15
• Price Target Upside: -3.90% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: €28.00 ▲(6.99% Upside)

Endesa SA's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's significant revenue growth and improved profitability, along with a reduced debt-to-equity ratio, enhance its financial stability. The technical analysis suggests a neutral trend with potential overbought conditions, which slightly tempers the overall score.

Positive Factors

Capital allocation and management

Endesa is a well-managed company, with a capital allocation that is market friendly.

Gas margins and earnings

Gas margin & earnings contribution likely materially above expectations in 2025.

Share buyback program

Endesa’s announced €500m SBB program should provide some support to the share price.

Negative Factors

Earnings growth

The likely normalization in power prices and retail margins should lead to negative earnings growth post 2026.

Earnings valuation

Shares, which trade on a 2026-27E PE of c.13x, are largely seen as fully valued.

EBITDA and commodity prices

Endesa’s current integrated EBITDA is running at least around 50% higher than those pre-Russia/Ukraine war, driven by higher commodity prices and retail margins, neither of which is believed to be sustainable.

Endesa SA 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 generates revenue through multiple streams, primarily from the sale of electricity and gas to residential, commercial, and industrial customers. The company earns money by operating a diverse portfolio of power generation facilities, including thermal, hydroelectric, and renewable energy sources, which allows it to capitalize on various energy markets. Additionally, Endesa benefits from regulated distribution networks, which provide steady income through regulated tariffs set by government authorities. Partnerships with local governments and investments in smart grid technologies further enhance its revenue potential. The company's strategic initiatives in renewable energy also position it to leverage government incentives and subsidies aimed at promoting sustainable energy solutions.

Endesa SA Financial Statement Overview

Summary

Endesa SA demonstrates solid financial performance with stable revenue growth, strong profitability, and effective cash flow management. The company maintains a moderate leverage level and a solid capital structure, but there is a need to focus on managing costs and liabilities.

Income Statement

Endesa SA demonstrates solid financial performance with a stable revenue base. The TTM revenue growth rate is positive at 1.65%, indicating steady expansion. Gross profit margin stands at 29.56%, while the net profit margin is a healthy 10.24%, showcasing efficient cost management. EBIT and EBITDA margins at 17.02% and 25.80% respectively, reflect strong operational profitability. However, a dip in gross profit over the past year suggests potential cost pressures.

Balance Sheet

Endesa SA maintains a robust equity base with a Debt-to-Equity ratio of 0.78, indicating a moderate level of leverage. The Return on Equity (ROE) is commendable at 24.52%, pointing to effective use of equity financing. An equity ratio of 23.82% reflects a solid capital structure, though there is room for improvement in reducing liabilities to enhance financial stability.

Cash Flow

The company's cash flow position is strong, with a significant increase in free cash flow in the TTM, showing a 58.18% growth rate. Operating cash flow to net income ratio is 2.10, indicating robust cash generation relative to net income. Free cash flow to net income ratio of 1.25 further highlights effective cash management strategies and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.40B	20.93B	25.07B	32.54B	20.52B	16.64B
Gross Profit	6.06B	8.16B	9.10B	9.15B	5.16B	5.07B
EBITDA	5.26B	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	840.00M	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	2.83B	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	3.19B	-8.16B	-3.07B	-1.73B
Financing Cash Flow	-3.75B	-3.50B	-6.65B	6.65B	752.00M	-1.04B

Endesa SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.17
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ELE, the sentiment is Neutral. The current price of 26.17 is above the 20-day moving average (MA) of 26.10, below the 50-day MA of 26.18, and above the 200-day MA of 23.36, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 34.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:ELE.

Endesa SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELE	68 Neutral	€28.11B	13.19	26.86%	4.99%	-4.53%	221.40%
Sector *	67 Neutral	$17.59B	18.19	5.33%	3.63%	7.33%	12.21%
0EBQ	―	€3.48B	25.90	5.64%	―	―	―
0NPV	―	€23.91B	13.10	22.84%	―	―	―
0HIT	―	€106.83B	19.98	10.92%	―	―	―
0RI5	―	€8.95B	24.35	10.14%	―	―	―
5BP	―	€7.56B	10.34	13.06%	―	―	―

Endesa SA Corporate Events

Endesa Completes Second Tranche of Share Repurchase Program

Endesa, S.A. has announced the completion of the Second Tranche of its share repurchase program, acquiring a total of 1,446,105 shares at a weighted average price of €27.00 per share between June 16 and 20, 2025. This move is part of Endesa’s strategy to reduce its share capital, potentially enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (ES:ELE) stock is a Buy with a EUR23.50 price target. To see the full list of analyst forecasts on Endesa SA stock, see the ES:ELE Stock Forecast page.