ENCE Energia y Celulosa SA (ES:ENC)
BME:ENC
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ENCE Energia y Celulosa
(BME:ENC)
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Rating:44Neutral
Price Target:
€2.50
▲(0.81% Upside)
Action:Reiterated
Date:05/09/26
The score is primarily weighed down by weak financial performance (losses, pressured margins, sharply negative free cash flow, and higher leverage). Technical indicators offer only modest support with neutral momentum and a partial uptrend, while valuation is mixed—supported by the dividend yield but constrained by loss-driven negative earnings.
Positive Factors
Diversified business model
ENCE operates two complementary, cash-generating businesses—eucalyptus pulp and biomass power—reducing single-market dependence. This vertical exposure helps smooth cyclical pulp revenue with recurring electricity sales, supporting revenue stability and strategic optionality over a multi-month horizon.
Negative Factors
Deteriorating profitability
Margins and bottom-line have weakened, with negative gross profit and recurring net losses. Persistent margin pressure reduces retained earnings and reinvestment capacity, making recovery dependent on sustained pricing improvements or cost cuts rather than short-term cyclical swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
ENCE operates two complementary, cash-generating businesses—eucalyptus pulp and biomass power—reducing single-market dependence. This vertical exposure helps smooth cyclical pulp revenue with recurring electricity sales, supporting revenue stability and strategic optionality over a multi-month horizon.
Read all positive factors
ENCE Energia y Celulosa (ENC) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€588.96M
Dividend Yield4.84%
Average Volume (3M)384.46K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-15.93%
EPS Growth-385.78%
CountryES
Employees1,245
SectorGeneral
Sector StrengthN/A
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-0.30
Shares Outstanding246,272,490
10 Day Avg. Volume378,882
30 Day Avg. Volume384,458
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.25
Price to Sales (P/S)0.80
P/FCF Ratio-14.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€2.70Price Target Upside8.87% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.05
Revenue Forecast (FY)€803.75M
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...
How the Company Makes Money
ENCE primarily earns revenue from two operating segments:
1) Pulp (cellulose) sales
- Core product and customers: ENCE produces eucalyptus pulp (cellulose), which is sold as an input material to manufacturers of paper, tissue, and other cellulose...
ENCE Energia y Celulosa Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
38
Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 714.16M | 747.30M | 870.44M | 829.60M | 1.00B | 819.67M |
| Gross Profit | -127.90M | -105.40M | 477.09M | 403.81M | 612.64M | 412.83M |
| EBITDA | 39.72M | 72.10M | 179.05M | 105.96M | 373.60M | -70.98M |
| Net Income | -74.36M | -54.50M | 31.55M | -24.72M | 247.22M | -190.41M |
Balance Sheet | ||||||
| Total Assets | 1.65B | 1.64B | 1.68B | 1.70B | 1.78B | 1.61B |
| Cash, Cash Equivalents and Short-Term Investments | 197.20M | 230.00M | 277.50M | 335.54M | 414.97M | 380.28M |
| Total Debt | 702.60M | 651.00M | 545.59M | 630.30M | 326.13M | 478.31M |
| Total Liabilities | 1.10B | 1.07B | 1.06B | 1.05B | 962.17M | 987.45M |
| Stockholders Equity | 459.30M | 477.20M | 525.57M | 534.06M | 700.89M | 512.66M |
Cash Flow | ||||||
| Free Cash Flow | -119.23M | -42.40M | 1.74M | -141.86M | 248.81M | 70.31M |
| Operating Cash Flow | 6.80M | 50.20M | 78.60M | -46.13M | 303.68M | 141.29M |
| Investing Cash Flow | -124.40M | -96.90M | -104.84M | -96.03M | -53.90M | -65.35M |
| Financing Cash Flow | 11.10M | 100.00K | -42.84M | 62.27M | -216.83M | -218.59M |
ENCE Energia y Celulosa Technical Analysis
Neutral
2.48
Price Trends
2.37
Positive
2.37
Positive
2.49
Negative
Market Momentum
0.01
Positive
51.09
Neutral
34.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ENC, the sentiment is Neutral. The current price of 2.48 is above the 20-day moving average (MA) of 2.44, above the 50-day MA of 2.37, and below the 200-day MA of 2.49, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 34.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:ENC.
ENCE Energia y Celulosa Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | €3.12B | 53.27 | 19.85% | ― | 60.51% | 57.02% | |
60 Neutral | €13.49B | 19.80 | 18.00% | 2.87% | 5.45% | 90.20% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | €210.80M | 27.34 | 3.84% | 4.24% | -15.70% | -61.85% | |
48 Neutral | €630.27M | 31.85 | 17.10% | 5.20% | -5.37% | -67.59% | |
44 Neutral | €588.96M | -8.22 | -5.36% | 4.84% | -15.93% | -385.78% |
* General Sector Average
ES:ENC
ENCE Energia y Celulosa
2.43
-0.46
-16.03%
ES:ANA
Acciona
246.80
107.84
77.61%
ES:ADX
Audax Renovables SA
1.39
-0.17
-11.07%
ES:IBG
Iberpapel Gestion
19.45
-0.71
-3.50%
ES:MCM
Miquel y Costas and Miquel
13.85
0.14
1.02%
ES:SLR
Solaria Energia y Medio Ambiente
23.50
15.83
206.55%
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.