ENCE Energia y Celulosa (ENC) AI Stock Analysis

• Market Cap: €715.47M
• Dividend Yield: 3.83%
• Average Volume (3M): 456.68K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.50
• Revenue Growth: 13.71%
• EPS Growth: N/A
• Country: ES
• Employees: 1,245
• Sector: Energy
• Sector Strength: 44
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.01
• Shares Outstanding: 246,272,490
• 10 Day Avg. Volume: 546,797
• 30 Day Avg. Volume: 456,675
• PEG Ratio: -1.68
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.79
• 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: €3.95
• Price Target Upside: 38.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: €3.00 ▲(4.90%Upside)

ENCE Energia y Celulosa's stock score reflects its mixed financial health, with stable liquidity and cash flow generation, but challenges in maintaining growth and increasing debt levels. The technical indicators suggest a neutral market position, while the valuation shows potential overvaluation, offset by a reasonable dividend yield.

ENCE Energia y Celulosa Business Overview & Revenue Model

Company Description

ENCE Energía y Celulosa, S.A., together with its subsidiaries, produces and sells eucalyptus pulp and renewable energy in Spain, Germany, Poland, Italy, France, the United Kingdom, Turkey, Sweden, Romania, Netherlands, Austria, and internationally. It offers bleached eucalyptus kraft pulp; and forest land management and forestry services, as well as produces renewable energy using forestry and agricultural biomass sources. The company also purchases and sells timber. It manages 61,631 hectares of forest. The company was formerly known as Grupo Empresarial ENCE, S.A. and changed its name to ENCE Energía y Celulosa, S.A. in April 2012. ENCE Energía y Celulosa, S.A. was founded in 1957 and is headquartered in Madrid, Spain.

How the Company Makes Money

ENCE makes money through two primary revenue streams: pulp production and energy generation. The company's core business involves the production and sale of eucalyptus pulp, which is a key raw material for paper manufacturers worldwide. ENCE's advanced production facilities and sustainable forest management practices enable it to supply high-quality pulp to its clients, generating substantial revenue. Additionally, ENCE generates renewable energy from biomass, which involves converting organic materials, primarily residuals from its forestry operations, into electricity. This energy is sold to national grids, providing a stable income stream. The company's focus on sustainability and efficiency, along with strategic partnerships, enhances its profitability and market position.

ENCE Energia y Celulosa Financial Statement Overview

Summary

ENCE Energia y Celulosa exhibits mixed financial health. The income statement reveals challenges in maintaining growth and profitability. However, the balance sheet and cash flow statements suggest reasonable stability and liquidity. The company's ability to generate cash flow despite fluctuating revenues is a positive sign, although increasing debt levels could pose future risks.

Income Statement

The income statement shows fluctuating performance with a recent decline in revenue growth, shrinking gross profit margins, and variable net income. The TTM (Trailing-Twelve-Months) period indicates a decrease in both gross profit and net income compared to the previous year. However, the company has managed to maintain positive EBITDA, suggesting some operational efficiency.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio that has increased over time, indicating rising debt levels. The equity ratio remains stable, showcasing a balanced asset structure. The company's liquidity is supported by a significant amount of cash and short-term investments, though there is concern about growing liabilities.

Cash Flow

The cash flow statement highlights consistent generation of operating cash flow, although free cash flow growth has been volatile. The TTM period shows an improvement in free cash flow from the previous year. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to net earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
849.50M	870.44M	829.60M	1.00B	819.67M	707.71M
	Gross Profit
348.73M	477.09M	403.81M	612.64M	412.83M	328.17M
	EBIT
31.56M	63.32M	-1.98M	278.23M	-175.89M	-40.15M
	EBITDA
161.61M	179.05M	108.52M	381.18M	-68.84M	100.02M
	Net Income Common Stockholders
26.02M	31.55M	-24.72M	247.22M	-190.41M	-26.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
479.00M	277.50M	335.54M	414.97M	380.28M	535.83M
	Total Assets
1.54B	1.68B	1.70B	1.78B	1.61B	1.97B
	Total Debt
604.60M	545.59M	630.30M	326.13M	478.31M	691.84M
	Net Debt
131.10M	281.64M	297.26M	-86.78M	98.34M	159.22M
	Total Liabilities
875.10M	1.06B	1.05B	962.17M	987.45M	1.12B
	Stockholders Equity
668.80M	525.57M	534.06M	700.89M	512.66M	713.42M
Cash Flow		Free Cash Flow
49.34M	1.74M	-141.86M	248.81M	70.31M	-34.68M
	Operating Cash Flow
128.20M	78.60M	-46.13M	303.68M	141.29M	62.36M
	Investing Cash Flow
-108.94M	-104.84M	-96.03M	-53.90M	-65.35M	-37.79M
	Financing Cash Flow
33.16M	-42.84M	62.27M	-216.83M	-218.59M	285.83M

ENCE Energia y Celulosa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ENC, the sentiment is Positive. The current price of 2.86 is below the 20-day moving average (MA) of 2.92, below the 50-day MA of 2.94, and below the 200-day MA of 3.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 66.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ENC.

ENCE Energia y Celulosa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENC	58 Neutral	€715.47M	27.43	4.36%	3.83%	13.71%	―
Sector *	57 Neutral	$7.23B	3.16	-4.49%	5.63%	0.82%	-49.15%
0ERM		€229.77M	11.37	6.09%	4.27%	―	―
0O6D		€520.02M	10.91	13.16%	2.71%	―	―

ENCE Energia y Celulosa Corporate Events

Ence Energía y Celulosa’s Future Outlook and Risk Assessment

The news release from Ence Energía y Celulosa primarily contains forward-looking statements about the company’s financial situation, business strategy, and future operations. It highlights the potential risks and uncertainties that could impact the company’s performance, such as fluctuations in pulp prices and exchange rates, as well as environmental and competitive challenges. The document also clarifies that it does not constitute an offer or invitation to engage in securities transactions.

ENCE Energia y Celulosa Approves 2024 Financials and Sustainability Report

The Ordinary General Meeting of Shareholders of ENCE Energia y Celulosa approved key agreements, including the annual accounts and management report for the fiscal year 2024, and the Sustainability Report 2024. The meeting also approved the application of the fiscal year’s positive result of €46.7 million, with allocations to interim dividends and covering previous negative results, reflecting the company’s stable financial performance and commitment to shareholder value.

ENCE to Announce Q1 2025 Results

ENCE Energia y Celulosa will release its first quarter 2025 financial results on April 29, with a presentation scheduled for April 30 to discuss the details. The presentation will be accessible via a virtual platform, with the recording available on the company’s website, indicating a commitment to transparency and stakeholder engagement.