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

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ES:ELE

Endesa SA

(LSE:ELE)

Rating:69Neutral
Price Target:
€28.00
▲(9.42% Upside)
Endesa SA's strong financial performance, characterized by significant revenue growth and improved profitability, is the most significant factor driving its score. The company's valuation is attractive due to a reasonable P/E ratio and a strong dividend yield. However, technical indicators suggest potential short-term bearish momentum, which slightly offsets the overall positive outlook.
Positive Factors
Earnings Potential
Gas margin & earnings contribution likely materially above expectations in 2025.
Financial Management
Endesa is a well-managed company, with a capital allocation that is market friendly.
Share Buyback
Endesa’s announced €500m SBB program should provide some support to the share price.
Negative Factors
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.
Earnings Growth
The likely normalization in power prices and retail margins should lead to negative earnings growth post 2026.
Stock Valuation
Shares, which trade on a 2026-27E PE of c.13x, are largely seen as fully valued.

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

Endesa SA Business Overview & Revenue Model

Company DescriptionEndesa SA (ELE) is a leading electric utility company based in Spain, primarily engaged in the generation, distribution, and sale of electricity. It operates within the energy sector, offering a range of services including renewable energy solutions, energy efficiency services, and natural gas distribution. Endesa is a subsidiary of the Italian energy group Enel and serves both residential and business customers across Spain and Portugal.
How the Company Makes MoneyEndesa SA generates revenue through multiple streams, primarily from the sale of electricity and natural gas to residential, commercial, and industrial customers. The company earns money by operating power plants and selling the electricity generated to consumers and businesses. Additionally, Endesa generates revenue through the distribution and transmission of electricity, for which it receives regulated tariffs. The company also offers various energy-related services, including energy efficiency solutions and maintenance services, which contribute to its income. Significant partnerships, such as its affiliation with Enel, and investments in renewable energy projects are also key factors that enhance its revenue potential.

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
75
Positive
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
70
Positive
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
80
Positive
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.
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 Price25.59
Price Trends
50DMA
26.22
Negative
100DMA
25.34
Positive
200DMA
22.73
Positive
Market Momentum
MACD
-0.23
Positive
RSI
44.67
Neutral
STOCH
74.95
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 25.59 is below the 20-day moving average (MA) of 25.79, below the 50-day MA of 26.22, and above the 200-day MA of 22.73, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
€27.09B12.7126.86%5.19%-4.53%221.40%
63
Neutral
HK$29.34B8.545.80%4.90%-3.44%2.46%
€3.46B25.675.64%
€22.60B13.2822.84%
€102.21B19.1110.92%
€8.95B24.3110.14%
€7.65B10.2313.06%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:ELE
Endesa SA
25.59
8.47
49.45%
GB:0EBQ
Enagas SA
13.23
0.40
3.12%
GB:0NPV
Naturgy Energy Group, S.A.
25.90
4.76
22.52%
GB:0HIT
Iberdrola
15.48
3.83
32.88%
GB:0RI5
Redeia Corporación
16.61
0.91
5.80%
DE:5BP
Corporacion Acciona Energias Renovables SA
23.10
3.75
19.38%

Endesa SA Corporate Events

Endesa Completes Second Tranche of Share Repurchase Program
Jun 23, 2025

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.

Endesa Announces Series of Related Transactions with Enel Group
May 6, 2025

Endesa, S.A. has announced a series of related transactions with its controlling shareholder Enel S.p.A. and associated companies. These transactions, approved by the Board of Directors, include software agreements, service contracts, and financial arrangements, all exceeding the regulatory threshold for public disclosure. The Audit and Compliance Committee has reviewed and deemed these transactions fair and reasonable, ensuring transparency and compliance with corporate governance standards.

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 06, 2025