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Endesa SA (ES:ELE)
BME:ELE
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Endesa SA (ELE) AI Stock Analysis

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ES:ELE

Endesa SA

(BME:ELE)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
€32.00
▲(6.07% Upside)
Endesa SA's strong financial performance, characterized by revenue growth and improved profitability, is the most significant factor driving the stock score. The technical analysis indicates a positive trend, though caution is advised due to overbought signals. The stock's reasonable valuation and attractive dividend yield further support its investment appeal.
Positive Factors
Leverage Reduction
A significant reduction in leverage enhances financial stability, providing Endesa with greater flexibility to invest in growth opportunities and navigate economic uncertainties.
Cash Flow Improvement
Improved cash flow indicates strong cash generation ability, supporting ongoing operations and potential investments, which is crucial for sustaining long-term growth and financial health.
Net Profit Margin Improvement
An improved net profit margin reflects better profitability management, indicating that Endesa is effectively controlling costs and enhancing its operational efficiency, which supports long-term profitability.
Negative Factors
Revenue Decline
A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting Endesa's ability to maintain its market position and financial performance over time.
Gross Profit Margin Pressure
A decrease in gross profit margin suggests potential cost pressures, which could affect Endesa's ability to maintain profitability unless addressed through cost management strategies.
Industry Challenges
Operating in a regulated industry can limit pricing flexibility and impose compliance costs, potentially constraining Endesa's growth and profitability unless it effectively navigates regulatory environments.

Endesa SA (ELE) vs. iShares MSCI Spain ETF (EWP)

Endesa SA Business Overview & Revenue Model

Company DescriptionEndesa, 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 MoneyEndesa 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 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
75
Positive
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
65
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.40B20.93B25.07B32.54B20.52B16.64B
Gross Profit6.06B8.16B9.10B9.15B5.16B5.07B
EBITDA5.26B5.42B3.32B5.40B3.60B3.34B
Net Income2.13B1.89B742.00M2.54B1.44B1.39B
Balance Sheet
Total Assets37.01B37.34B41.28B49.96B39.97B32.06B
Cash, Cash Equivalents and Short-Term Investments678.00M840.00M2.11B7.14B1.58B1.58B
Total Debt10.90B10.49B13.73B18.49B10.38B4.26B
Total Liabilities27.83B28.29B34.08B44.20B34.42B24.60B
Stockholders Equity8.28B8.11B7.02B5.56B5.38B7.32B
Cash Flow
Free Cash Flow2.83B1.72B2.41B-460.00M539.00M1.25B
Operating Cash Flow4.73B3.57B4.70B1.67B2.62B2.95B
Investing Cash Flow-2.71B-1.33B3.19B-8.16B-3.07B-1.73B
Financing Cash Flow-3.75B-3.50B-6.65B6.65B752.00M-1.04B

Endesa SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price30.17
Price Trends
50DMA
27.25
Positive
100DMA
26.70
Positive
200DMA
24.97
Positive
Market Momentum
MACD
0.73
Negative
RSI
80.36
Negative
STOCH
83.90
Negative
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 30.17 is above the 20-day moving average (MA) of 28.62, above the 50-day MA of 27.25, and above the 200-day MA of 24.97, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 80.36 is Negative, neither overbought nor oversold. The STOCH value of 83.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ELE.

Endesa SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
€7.94B10.6213.06%1.81%2.05%307.60%
€23.16B12.6922.84%6.37%2.66%1.26%
€30.99B14.5426.86%4.37%-4.53%221.40%
€113.10B21.1510.92%3.00%-1.89%-21.48%
$17.65B18.105.60%3.62%6.62%11.55%
€9.01B24.5010.14%3.88%-23.15%-39.13%
€3.71B39.423.85%7.00%5.35%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:ELE
Endesa SA
30.17
11.39
60.62%
ES:ENG
Enagas SA
14.29
1.80
14.38%
ES:NTGY
Naturgy Energy Group, S.A.
26.70
4.59
20.75%
ES:IBE
Iberdrola
17.70
4.41
33.14%
ES:RED
Redeia Corporación
16.69
0.81
5.07%
ES:ANE
Corporacion Acciona Energias Renovables SA
24.28
5.13
26.76%

Endesa SA Corporate Events

Stock Buyback
Endesa Launches Third Tranche of Share Buyback Programme
Neutral
Oct 15, 2025

Endesa S.A. has announced the implementation of the Third Tranche of its Share Buyback Framework Programme, authorized by its General Shareholders’ Meeting. This tranche, valued at up to €500 million, aims to reduce the company’s share capital by acquiring and subsequently canceling its own shares, subject to shareholder approval. The buyback will be conducted on the Spanish Stock Exchange and other trading facilities, with purchases made at market price. Enel S.p.A., Endesa’s majority shareholder, will not participate in this programme, ensuring a focused execution of the buyback strategy.

Stock Buyback
Endesa Announces Completion of Second Tranche and Launch of Third Tranche in Share Buyback Programme
Neutral
Oct 13, 2025

Endesa S.A. has announced the early termination of the Second Tranche of its Share Buyback Framework Programme, having purchased over 17 million shares at a total cost of 442 million euros. The company is set to initiate a Third Tranche, valued at up to 500 million euros, aimed at reducing share capital through the cancellation of acquired treasury shares, pending shareholder approval.

Financial Disclosures
Endesa S.A. Releases 1H 2025 Financial Results
Neutral
Jul 29, 2025

Endesa, S.A. has released its financial results for the first half of 2025, which are now available on their website. The announcement includes various reports and presentations that provide insights into the company’s financial performance and strategic positioning. This release is crucial for stakeholders as it reflects Endesa’s operational efficiency and market strategy, potentially impacting investor confidence and market dynamics.

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: Oct 23, 2025