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ENCE Energia y Celulosa SA (ES:ENC)
BME:ENC
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ENCE Energia y Celulosa (ENC) AI Stock Analysis

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ES:ENC

ENCE Energia y Celulosa

(BME:ENC)

Rating:46Neutral
Price Target:
€3.00
▲(6.01% Upside)
ENCE Energia y Celulosa's overall stock score reflects significant financial challenges, with declining revenues and profitability, increased leverage, and constrained cash flows. Technical analysis shows neutral indicators, while valuation concerns are highlighted by a negative P/E ratio despite a high dividend yield. The absence of earnings call and corporate events data limits further insights.

ENCE Energia y Celulosa (ENC) vs. iShares MSCI Spain ETF (EWP)

ENCE Energia y Celulosa Business Overview & Revenue Model

Company DescriptionENCE 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 MoneyENCE generates revenue through multiple streams, primarily from the sale of cellulose pulp and renewable energy. The cellulose pulp segment accounts for a significant portion of its income, as the company supplies this product to paper manufacturers both domestically and internationally. Additionally, ENCE produces and sells electricity generated from biomass, which is supported by government incentives for renewable energy. Key revenue streams include long-term contracts with industrial clients for cellulose pulp and participation in energy markets where they sell electricity. Strategic partnerships with forestry management companies and collaborations with research institutions also enhance their operational efficiency and innovation, further contributing to their financial performance.

ENCE Energia y Celulosa Financial Statement Overview

Summary
ENCE Energia y Celulosa is facing a challenging financial environment with declining revenues and profitability, increased leverage, and constrained cash flows. The income statement, balance sheet, and cash flow scores reflect these difficulties, with particular pressure on operational efficiency and cash flow management.
Income Statement
45
Neutral
ENCE Energia y Celulosa's income statement shows a challenging period with declining revenue and profitability. The TTM data indicates a negative net profit margin of -0.22% and a decrease in revenue growth rate by 5.02%. The gross profit margin remains relatively healthy at 50.18%, but the EBIT and EBITDA margins have decreased significantly compared to previous years, indicating pressure on operational efficiency.
Balance Sheet
55
Neutral
The balance sheet reflects a moderate level of financial leverage with a debt-to-equity ratio of 1.10. The return on equity is negative at -0.32%, highlighting challenges in generating returns for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure despite the increased debt levels.
Cash Flow
40
Negative
The cash flow statement reveals significant challenges, with a negative free cash flow growth rate of -112.83% in the TTM period. The operating cash flow to net income ratio is low at 0.18, indicating limited cash generation relative to net income. The negative free cash flow to net income ratio further underscores cash flow constraints.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue806.86M870.44M829.60M1.00B819.67M707.71M
Gross Profit404.91M477.09M403.81M612.64M412.83M328.17M
EBITDA126.63M179.05M108.52M381.18M-68.84M100.02M
Net Income-1.81M31.55M-24.72M247.22M-190.41M-26.43M
Balance Sheet
Total Assets1.74B1.68B1.70B1.78B1.61B1.97B
Cash, Cash Equivalents and Short-Term Investments271.56M277.50M335.54M414.97M380.28M535.83M
Total Debt583.71M545.59M630.30M326.13M478.31M691.84M
Total Liabilities1.12B1.06B1.05B962.17M987.45M1.12B
Stockholders Equity530.51M525.57M534.06M700.89M512.66M713.42M
Cash Flow
Free Cash Flow-6.33M1.74M-141.86M248.81M70.31M-34.68M
Operating Cash Flow84.89M78.60M-46.13M303.68M141.29M62.36M
Investing Cash Flow-109.72M-104.84M-96.03M-53.90M-65.35M-37.79M
Financing Cash Flow26.40M-42.84M62.27M-216.83M-218.59M285.83M

ENCE Energia y Celulosa Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.83
Price Trends
50DMA
2.84
Negative
100DMA
2.87
Negative
200DMA
3.03
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
51.16
Neutral
STOCH
54.26
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 2.83 is above the 20-day moving average (MA) of 2.83, below the 50-day MA of 2.84, and below the 200-day MA of 3.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 54.26 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.01B7.484.09%5.36%4.10%-61.80%
46
Neutral
€682.51M26.80-0.33%4.94%-1.51%-129.96%
€214.60M14.374.54%
€531.08M11.2613.16%2.73%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:ENC
ENCE Energia y Celulosa
2.83
-0.04
-1.50%
GB:0ERM
Iberpapel Gestion
19.85
2.90
17.11%
GB:0O6D
Miquel y Costas and Miquel
14.30
2.17
17.89%

ENCE Energia y Celulosa Corporate Events

Ence Energía y Celulosa’s Future Outlook and Risk Assessment
Apr 30, 2025

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.

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.Date of analysis: Aug 28, 2025