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ENCE Energia y Celulosa SA (ES:ENC)
BME:ENC
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ENCE Energia y Celulosa
(BME:ENC)
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Rating:49Neutral
Price Target:
€2.50
▲(0.81% Upside)
ENCE Energia y Celulosa's overall stock score is primarily impacted by its financial difficulties, including declining revenues and profitability, increased leverage, and cash flow challenges. The technical indicators suggest a bearish trend, while the valuation shows a high dividend yield despite negative earnings. These factors collectively result in a below-average stock score.
Positive Factors
Sustainable Practices
Sustainable practices align with global trends towards eco-friendly products, potentially enhancing long-term demand and market position.
Renewable Energy Revenue
Diversification into renewable energy provides a stable revenue stream and aligns with increasing global demand for clean energy.
High Gross Profit Margin
A strong gross profit margin indicates efficient cost management and pricing power, supporting long-term profitability.
Negative Factors
Declining Revenue
Declining revenue growth can impact the company's ability to invest in innovation and maintain competitive advantages over time.
Negative Free Cash Flow Growth
Negative cash flow growth limits financial flexibility and may hinder the company's ability to fund operations and growth initiatives.
Increased Financial Leverage
High leverage and negative return on equity indicate financial strain, potentially increasing risk and limiting strategic options.
ENCE Energia y Celulosa (ENC) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€552.12M
Dividend Yield4.84%
Average Volume (3M)384.46K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth-11.51%
EPS Growth-170.43%
CountryES
Employees1,245
SectorGeneral
Sector StrengthN/A
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-0.06
Shares Outstanding246,272,490
10 Day Avg. Volume378,882
30 Day Avg. Volume384,458
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.43
Price to Sales (P/S)0.86
P/FCF Ratio432.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 key streams. The primary source of income comes from the sale of cellulose pulp, which is used in various paper products. The company also earns significant revenue from the production and sale of renewable energy, primarily generated from biomass sources. Additionally, ENCE engages in the sale of electricity produced in its biomass power plants, contributing to its overall earnings. Partnerships with forestry companies and pulp consumers ensure a steady supply chain and market for its products. The company's commitment to sustainability and renewable resources also aligns with growing global demand for eco-friendly products, further enhancing its revenue potential.
ENCE Energia y Celulosa Financial Statement Overview
Summary
ENCE Energia y Celulosa is facing financial difficulties with declining revenues, negative profitability, increased leverage, and cash flow challenges. The company needs to address these issues to improve its financial health.Income Statement
ENCE Energia y Celulosa has faced declining revenue growth in the TTM period, with a negative revenue growth rate of -5.51%. The company also reported a negative net profit margin, indicating losses. The gross profit margin remains relatively stable, but the EBIT and EBITDA margins have decreased compared to previous years, reflecting operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased to 1.10 in the TTM period, indicating higher leverage. Return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio remains stable, but the increased debt level poses potential risks.50
Neutral
Cash Flow
Operating cash flow has decreased significantly, and free cash flow is negative in the TTM period. The free cash flow growth rate is high due to a low base effect, but the negative free cash flow to net income ratio highlights cash flow challenges. The operating cash flow to net income ratio is low, indicating weak cash generation relative to earnings.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 762.40M | 870.44M | 829.60M | 1.00B | 819.67M | 707.71M |
| Gross Profit | 252.48M | 477.09M | 403.81M | 612.64M | 412.83M | 328.17M |
| EBITDA | 90.21M | 179.05M | 105.96M | 373.60M | -70.98M | 100.02M |
| Net Income | -31.21M | 31.55M | -24.72M | 247.22M | -190.41M | -26.43M |
Balance Sheet | ||||||
| Total Assets | 1.69B | 1.68B | 1.70B | 1.78B | 1.61B | 1.97B |
| Cash, Cash Equivalents and Short-Term Investments | 252.80M | 277.50M | 335.54M | 414.97M | 380.28M | 535.83M |
| Total Debt | 633.30M | 545.59M | 630.30M | 326.13M | 478.31M | 691.84M |
| Total Liabilities | 1.09B | 1.06B | 1.05B | 962.17M | 987.45M | 1.12B |
| Stockholders Equity | 513.10M | 525.57M | 534.06M | 700.89M | 512.66M | 713.42M |
Cash Flow | ||||||
| Free Cash Flow | -57.59M | 1.74M | -141.86M | 248.81M | 70.31M | -34.68M |
| Operating Cash Flow | 46.70M | 78.60M | -46.13M | 303.68M | 141.29M | 62.36M |
| Investing Cash Flow | -140.44M | -104.84M | -96.03M | -53.90M | -65.35M | -37.79M |
| Financing Cash Flow | 14.16M | -42.84M | 62.27M | -216.83M | -218.59M | 285.83M |
ENCE Energia y Celulosa Technical Analysis
Neutral
2.48
Price Trends
2.32
Negative
2.50
Negative
2.68
Negative
Market Momentum
-0.03
Negative
48.27
Neutral
42.87
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 2.27, above the 50-day MA of 2.32, and below the 200-day MA of 2.68, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 42.87 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)
ES:ENC
ENCE Energia y Celulosa
2.28
-1.21
-34.65%
ES:IBG
Iberpapel Gestion
21.00
3.20
17.98%
ES:MCM
Miquel y Costas and Miquel
14.10
1.13
8.69%
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.