ENCE Energia y Celulosa (ENC) AI Stock Analysis

• Market Cap: €698.99M
• Dividend Yield: 4.87%
• Average Volume (3M): 518.99K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.53
• Revenue Growth: 13.71%
• EPS Growth: N/A
• Country: ES
• Employees: 1,245
• Sector: Energy
• Sector Strength: 45
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.04
• Shares Outstanding: 246,272,490
• 10 Day Avg. Volume: 381,213
• 30 Day Avg. Volume: 518,985
• PEG Ratio: -1.73
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.16
• 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: €3.78
• Price Target Upside: 31.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: €3.00 ▲(4.53%Upside)

ENCE's overall stock score reflects a balance of mixed financial performance, bearish technical indicators, and a relatively high valuation tempered by a strong dividend yield. The lack of strong momentum and rising debt levels are primary concerns, while cash flow stability and dividend yield are supporting strengths.

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 Energia y Celulosa generates revenue primarily through two key streams: pulp production and renewable energy. The pulp production segment involves the manufacturing and sale of eucalyptus pulp, which is supplied to paper manufacturers globally. This segment is supported by competitive production costs and a strong focus on operational efficiency. The renewable energy segment involves the generation and sale of electricity derived from biomass, which is considered a stable and sustainable form of energy. ENCE's biomass plants utilize agricultural and forestry residues, contributing to the circular economy. Significant partnerships with energy distributors and adherence to regulatory incentives for renewable energy further bolster this revenue stream. Overall, the company's financial performance is influenced by market demand for pulp, energy prices, and regulatory frameworks in the renewable energy sector.

ENCE Energia y Celulosa Financial Statement Overview

Summary

ENCE Energia y Celulosa's financial health is mixed. The income statement shows declining revenue growth and shrinking profit margins, but positive EBITDA indicates operational efficiency. The balance sheet's moderate leverage and stable liquidity are offset by rising debt levels. Cash flow generation is strong, despite revenue fluctuations.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	870.44M	829.60M	1.00B	819.67M	707.71M
Gross Profit	477.09M	403.81M	612.64M	412.83M	328.17M
EBITDA	179.05M	108.52M	381.18M	-68.84M	100.02M
Net Income	31.55M	-24.72M	247.22M	-190.41M	-26.43M
Balance Sheet
Total Assets	1.68B	1.70B	1.78B	1.61B	1.97B
Cash, Cash Equivalents and Short-Term Investments	277.50M	335.54M	414.97M	380.28M	535.83M
Total Debt	545.59M	630.30M	326.13M	478.31M	691.84M
Total Liabilities	1.06B	1.05B	962.17M	987.45M	1.12B
Stockholders Equity	525.57M	534.06M	700.89M	512.66M	713.42M
Cash Flow
Free Cash Flow	1.74M	-141.86M	248.81M	70.31M	-34.68M
Operating Cash Flow	78.60M	-46.13M	303.68M	141.29M	62.36M
Investing Cash Flow	-104.84M	-96.03M	-53.90M	-65.35M	-37.79M
Financing Cash Flow	-42.84M	62.27M	-216.83M	-218.59M	285.83M

ENCE Energia y Celulosa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 2.87 is below the 20-day moving average (MA) of 2.89, below the 50-day MA of 2.90, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 39.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	67 Neutral	$15.18B	9.41	6.29%	5.47%	4.23%	-67.01%
ENC	59 Neutral	€698.99M	26.80	4.36%	4.87%	13.71%	―
0ERM	―	€227.60M	11.31	6.09%	7.20%	―	―
0O6D	―	€525.55M	11.19	13.16%	2.73%	―	―

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.