Endesa SA (ELE) AI Stock Analysis

• Market Cap: €32.31B
• Dividend Yield: 4.32%
• Average Volume (3M): 731.70K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.50
• Revenue Growth: -2.54%
• EPS Growth: 103.14%
• Country: ES
• Employees: 8,948
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.45
• Shares Outstanding: 1,058,752,100
• 10 Day Avg. Volume: 720,867
• 30 Day Avg. Volume: 731,700
• 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: €28.38
• Price Target Upside: -7.59% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €32.00 ▲(4.20% Upside)

Endesa SA's overall stock score is driven by its stable financial performance and reasonable valuation. The company maintains strong profitability margins and a balanced financial position, which supports its operations and future growth. The technical analysis indicates a neutral to slightly bearish outlook, which slightly tempers the overall score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Profitability Margins

Strong profitability margins indicate efficient operations and pricing power, supporting long-term financial stability and growth potential.

Balance Sheet Health

A manageable debt-to-equity ratio suggests prudent financial management, enabling sustained investment in growth and resilience against economic fluctuations.

EPS Growth

Significant EPS growth demonstrates strong earnings performance, enhancing shareholder value and providing resources for reinvestment in strategic initiatives.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can limit the company's ability to expand market share and invest in new opportunities, potentially impacting long-term competitiveness.

Free Cash Flow Decline

Declining free cash flow growth may hinder the company's ability to fund operations, pay down debt, or invest in future growth, affecting financial flexibility.

Revenue Decline

A decline in revenue growth can signal market challenges or competitive pressures, potentially affecting the company's ability to sustain its market position.

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 primarily through the sale of electricity to residential, commercial, and industrial customers. Its revenue model is diversified across several key streams: the generation of electricity from a mix of renewable sources (such as wind and solar) and conventional fossil fuel plants, which are sold to the market or directly to consumers. Additionally, the company earns income from the distribution of electricity through its extensive network, which allows it to charge fees for the delivery of power. Endesa also engages in energy trading, optimizing its portfolio to maximize profits from fluctuations in market prices. Partnerships with local and regional governments for energy efficiency projects and renewable energy initiatives further enhance its revenue potential. Regulatory frameworks and subsidies for renewable projects in Europe and Latin America also contribute positively to its earnings.

Endesa SA Financial Statement Overview

Summary

Endesa SA demonstrates strong financial performance with significant revenue growth and improved profitability in the TTM period. The company has effectively reduced its leverage, enhancing financial stability. Cash flow metrics show positive trends, supporting ongoing operations and potential investments. Continued focus on cost management and maintaining a balanced capital structure will be crucial for sustaining growth.

Income Statement

Endesa SA shows a strong revenue growth in the TTM period with a 55.4% increase, recovering from previous declines. The gross profit margin has decreased from 38.96% in 2024 to 28.33% in TTM, indicating potential cost pressures. However, the net profit margin improved to 9.95% in TTM, reflecting better profitability management. EBIT and EBITDA margins remain stable, suggesting operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved from 3.33 in 2022 to 1.32 in TTM, indicating a significant reduction in leverage. Return on equity is strong at 25.53% in TTM, showing efficient use of equity. The equity ratio is moderate, suggesting a balanced capital structure, but the company should continue to monitor its debt levels.

Cash Flow

Operating cash flow has increased significantly in TTM, improving the operating cash flow to net income ratio to 0.55. Free cash flow growth is positive at 4.12% in TTM, showing improved cash generation. The free cash flow to net income ratio is healthy at 0.60, indicating good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.12B	20.93B	25.07B	32.54B	20.52B	16.64B
Gross Profit	6.05B	8.16B	9.10B	9.15B	5.16B	5.07B
EBITDA	5.32B	5.42B	3.49B	5.40B	3.60B	3.34B
Net Income	2.19B	1.89B	742.00M	2.54B	1.44B	1.39B
Balance Sheet
Total Assets	37.07B	37.34B	41.28B	49.96B	39.97B	32.06B
Cash, Cash Equivalents and Short-Term Investments	196.00M	840.00M	2.11B	7.14B	1.58B	1.58B
Total Debt	10.72B	10.58B	13.73B	18.49B	10.38B	4.26B
Total Liabilities	27.24B	28.29B	34.08B	44.20B	34.42B	24.60B
Stockholders Equity	8.66B	8.11B	7.02B	5.56B	5.38B	7.32B
Cash Flow
Free Cash Flow	2.66B	1.72B	2.41B	-460.00M	539.00M	1.25B
Operating Cash Flow	4.49B	3.57B	4.70B	1.67B	2.62B	2.95B
Investing Cash Flow	-2.73B	-1.33B	3.19B	-8.16B	-3.07B	-1.73B
Financing Cash Flow	-3.89B	-3.50B	-6.65B	6.65B	752.00M	-1.04B

Endesa SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 30.71 is above the 20-day moving average (MA) of 30.53, above the 50-day MA of 30.71, and above the 200-day MA of 27.22, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 27.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ELE.

Endesa SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTGY	71 Outperform	€22.60B	12.39	22.84%	6.66%	2.66%	1.26%
IBE	67 Neutral	€121.23B	21.27	11.50%	2.92%	0.50%	-19.06%
ANE	66 Neutral	€7.10B	9.50	13.06%	2.02%	2.05%	307.60%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ELE	63 Neutral	€32.31B	14.63	26.20%	4.32%	-2.54%	103.14%
ENG	55 Neutral	€3.63B	38.66	3.85%	7.01%	5.35%	―
RED	52 Neutral	€8.05B	21.89	10.14%	4.27%	-23.15%	-39.13%