ENCE Energia y Celulosa (ENC) AI Stock Analysis

• Market Cap: €643.73M
• Dividend Yield: 4.93%
• Average Volume (3M): 384.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -11.51%
• EPS Growth: -170.43%
• Country: ES
• Employees: 1,245
• Sector: Energy
• Sector Strength: 52
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.06
• Shares Outstanding: 246,272,490
• 10 Day Avg. Volume: 378,882
• 30 Day Avg. Volume: 384,458
• PEG Ratio: -0.10
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 432.15
• 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: €2.95
• Price Target Upside: 26.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: €2.50 ▲(6.84% Upside)

ENCE Energia y Celulosa's overall stock score is primarily impacted by its challenging financial performance and bearish technical indicators. The negative P/E ratio further weighs on the valuation, although the high dividend yield offers some support. The absence of earnings call data and corporate events means these factors do not influence the 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 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 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 experiencing 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 negative net profit margins and free cash flow growth.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	806.86M	870.44M	829.60M	1.00B	819.67M	707.71M
Gross Profit	404.91M	477.09M	403.81M	612.64M	412.83M	328.17M
EBITDA	126.63M	179.05M	105.96M	373.60M	-70.98M	100.02M
Net Income	-1.81M	31.55M	-24.72M	247.22M	-190.41M	-26.43M
Balance Sheet
Total Assets	1.74B	1.68B	1.70B	1.78B	1.61B	1.97B
Cash, Cash Equivalents and Short-Term Investments	271.56M	277.50M	335.54M	414.97M	380.28M	535.83M
Total Debt	583.71M	545.59M	630.30M	326.13M	478.31M	691.84M
Total Liabilities	1.12B	1.06B	1.05B	962.17M	987.45M	1.12B
Stockholders Equity	530.51M	525.57M	534.06M	700.89M	512.66M	713.42M
Cash Flow
Free Cash Flow	-6.33M	1.74M	-141.86M	248.81M	70.31M	-34.68M
Operating Cash Flow	84.89M	78.60M	-46.13M	303.68M	141.29M	62.36M
Investing Cash Flow	-109.72M	-104.84M	-96.03M	-53.90M	-65.35M	-37.79M
Financing Cash Flow	26.40M	-42.84M	62.27M	-216.83M	-218.59M	285.83M

ENCE Energia y Celulosa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.34
• 50DMA: Negative
• 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 Negative. The current price of 2.34 is below the 20-day moving average (MA) of 2.39, below the 50-day MA of 2.60, and below the 200-day MA of 2.86, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 69.77 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
IBG	69 Neutral	€215.68M	16.80	3.84%	4.98%	-8.26%	-53.40%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ENC	42 Neutral	€643.73M	-20.65	-5.36%	4.93%	-11.51%	-170.43%