Endesa SA (ELE) AI Stock Analysis

• Market Cap: €27.96B
• Dividend Yield: 6.19%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.57
• Revenue Growth: -8.09%
• EPS Growth: 395.09%
• Country: ES
• Employees: 8,948
• Sector: Utilities
• Sector Strength: 74
• Industry: Regulated Electric
• EPS (TTM): 0.55
• Shares Outstanding: 1,058,752,100
• 10 Day Avg. Volume: 967,337
• 30 Day Avg. Volume: 1,102,904
• PEG Ratio: 0.85
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.27
• 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: €27.07
• Price Target Upside: 2.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: €30.00 ▲(13.55%Upside)

Endesa SA is well-positioned with strong financial performance and an attractive valuation, supported by efficient cash flow management and a high dividend yield. However, the technical analysis indicates a neutral market sentiment, suggesting potential caution in the short term.

Positive Factors

Financial performance

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

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 outlook

The downgrade to Sell reflects the view that the earnings upgrade cycle is soon coming to an end following 'peak integrated margins' in electricity.

Valuation

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

Endesa SA Business Overview & Revenue Model

Company Description

Endesa SA (ELE) is a leading Spanish energy company primarily engaged in the generation, distribution, and sale of electricity and gas. As a subsidiary of the Enel Group, Endesa operates in Spain and Portugal, offering a wide range of energy-related services. The company is a key player in the Iberian energy market and is involved in both conventional and renewable energy projects, striving to contribute to a sustainable energy future.

How the Company Makes Money

Endesa SA generates revenue through several key streams, primarily focusing on the generation and sale of electricity and gas to residential, commercial, and industrial customers. Its revenue model includes income from electricity generation plants, both conventional and renewable, as well as the distribution network that delivers energy to end-users. Additionally, Endesa earns money through the sale of natural gas and energy-related services such as maintenance, repair, and energy efficiency solutions. The company benefits from long-term contracts and tariff structures regulated by national and regional authorities. Strategic partnerships and investments in renewable energy projects also contribute significantly to Endesa's earnings, aligning with global trends towards cleaner energy solutions.

Endesa SA Financial Statement Overview

Summary

Endesa SA showcases a strong financial position with improved profitability and robust balance sheet metrics. Improved margins and equity growth indicate financial health, despite challenges in consistent revenue growth.

Income Statement

Endesa SA's income statement reflects a mixed performance. The gross profit margin improved slightly from 36.3% in 2023 to 39% in 2024, indicating better cost management. However, the net profit margin increased significantly from 3% to 9%, showing enhanced profitability. Revenue growth has been volatile, with a decrease of 16.5% from 2023 to 2024. The EBIT margin improved significantly from 6.6% to 14.7%, and the EBITDA margin increased from 13.3% to 25.9%, suggesting strong operational efficiency. Overall, the company demonstrates improved margins but faces challenges in sustaining revenue growth.

Balance Sheet

The balance sheet of Endesa SA shows a solid performance. The company has eliminated its total debt by 2024, improving its financial stability. The equity ratio increased from 17% to 21.7%, showing a stronger reliance on equity financing. Return on equity surged from 10.6% in 2023 to 23.3% in 2024, reflecting significant profitability improvements. The elimination of debt and increased equity ratio highlight a robust financial position, although the company should maintain a balanced growth approach to leverage this stability.

Cash Flow

Endesa SA's cash flow shows healthy management. The free cash flow to net income ratio is stable, indicating effective conversion of earnings into cash. Operating cash flow decreased from €4.7 billion in 2023 to €3.6 billion in 2024, but free cash flow remained positive at €1.7 billion. The decline in operating cash flow needs monitoring, but the overall cash flow position remains strong with positive free cash flow indicating good liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.28B	20.93B	25.07B	32.54B	20.52B	16.64B
Gross Profit	6.29B	8.16B	9.10B	9.15B	5.16B	5.07B
EBITDA	5.49B	5.42B	3.32B	5.40B	3.60B	3.34B
Net Income	2.18B	1.89B	742.00M	2.54B	1.44B	1.39B
Balance Sheet
Total Assets	37.28B	37.34B	41.28B	49.96B	39.97B	32.06B
Cash, Cash Equivalents and Short-Term Investments	980.00M	840.00M	2.11B	7.14B	1.58B	1.58B
Total Debt	6.92B	10.49B	13.73B	18.49B	10.38B	4.26B
Total Liabilities	27.48B	28.04B	34.08B	44.20B	34.42B	24.60B
Stockholders Equity	8.88B	8.11B	7.02B	5.56B	5.38B	7.32B
Cash Flow
Free Cash Flow	2.72B	1.72B	2.41B	-460.00M	539.00M	1.25B
Operating Cash Flow	4.58B	3.57B	4.70B	1.67B	2.62B	2.95B
Investing Cash Flow	-2.48B	-1.33B	3.19B	-8.16B	-3.07B	-1.73B
Financing Cash Flow	-3.66B	-3.50B	-6.65B	6.65B	752.00M	-1.04B

Endesa SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.42
• 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 26.42 is below the 20-day moving average (MA) of 26.60, above the 50-day MA of 26.22, and above the 200-day MA of 22.01, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 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	75 Outperform	€26.20B	13.62	20.32%	4.40%	-14.81%	-4.27%
IBE	74 Outperform	€96.92B	20.15	10.55%	4.16%	-3.50%	-20.24%
ELE	74 Outperform	€27.96B	12.83	26.26%	6.19%	-8.09%	395.09%
ANE	71 Outperform	€7.18B	20.08	6.11%	1.73%	-14.07%	-31.00%
Sector *	67 Neutral	€24.58B	13.94	13.38%	5.43%	-10.92%	23.63%
RED	59 Neutral	€9.51B	25.87	9.44%	7.07%	-22.76%	-46.60%
ENG	53 Neutral	€3.52B	10.27	-11.89%	8.93%	-1.54%	-184.82%

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.

Endesa Announces Series of Related Transactions with Enel Group

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.

Endesa Approves 2024 Financials and Dividend Distribution

Endesa’s Ordinary General Meeting of Shareholders approved several key resolutions, including the annual accounts and management reports for 2024, the re-election of KPMG Auditores, S.L. as the auditor for 2026-2028, and the distribution of a dividend based on the year’s profits. These decisions reflect Endesa’s commitment to transparency and financial stability, reinforcing its position in the energy market and ensuring continued shareholder value.

Endesa Launches Second Tranche of Share Repurchase Program

Endesa, S.A. has announced the implementation of the second tranche of its share repurchase program, with a maximum monetary amount of 500 million euros, aiming to reduce its share capital by amortizing the acquired shares. This move is part of a broader strategy to optimize capital structure, and the majority shareholder, Enel S.p.A., has committed not to participate in the program, ensuring no market disruption during the execution period.