Endesa SA (ELE) AI Stock Analysis

• Market Cap: €29.36B
• Dividend Yield: 4.79%
• Average Volume (3M): 672.47K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.56
• Revenue Growth: -4.53%
• EPS Growth: 221.40%
• 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: 588,879
• 30 Day Avg. Volume: 672,472
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €25.48
• Price Target Upside: -7.41% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: €28.00 ▲(1.74% Upside)

Endesa SA's strong financial performance, characterized by revenue growth and improved profitability, is the most significant factor contributing to the stock score. The valuation is also favorable, with a reasonable P/E ratio and attractive dividend yield. However, technical indicators suggest a lack of strong momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Negative Factors

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 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	21.40B	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: Positive
• Last Price: 27.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 27.52 is above the 20-day moving average (MA) of 26.80, above the 50-day MA of 26.30, and above the 200-day MA of 24.31, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 66.12 is Neutral, neither overbought nor oversold. The STOCH value of 85.45 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTGY	68 Neutral	€23.51B	12.88	22.84%	6.58%	2.66%	1.26%
ELE	68 Neutral	€29.36B	13.77	26.86%	4.79%	-4.53%	221.40%
IBE	67 Neutral	€107.16B	20.04	10.92%	3.25%	-1.89%	-21.48%
ANE	66 Neutral	€8.12B	10.86	13.06%	1.85%	2.05%	307.60%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RED	62 Neutral	€8.76B	23.83	10.14%	4.00%	-23.15%	-39.13%
ENG	55 Neutral	€3.50B	25.89	5.64%	7.49%	2.37%	―