Enagas SA (ENG) AI Stock Analysis

• Market Cap: €4.01B
• Dividend Yield: 7.01%
• Average Volume (3M): 810.20K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.23
• Revenue Growth: 5.35%
• EPS Growth: N/A
• Country: ES
• Employees: 1,395
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.24
• Shares Outstanding: 261,990,080
• 10 Day Avg. Volume: 743,396
• 30 Day Avg. Volume: 810,196
• PEG Ratio: -0.07
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 3.65
• P/FCF Ratio: 36.65
• 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: €14.24
• Price Target Upside: -7.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.9
• Revenue Forecast (FY): €800.64M

• Rating: 67 Neutral
• Price Target: €16.00 ▲(4.30% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back primarily by the sharp deterioration in 2025 operating/free cash flow despite improved profitability, which increases dividend and balance-sheet risk. Offsetting this are improving leverage trends, constructive technical momentum (price above key moving averages with positive MACD), and a reasonable valuation with an attractive dividend yield.

Positive Factors

Regulated, tariff-based revenues

Enagas’s core business is tariff-regulated gas transmission, storage and regasification with long-term contracts. That structural revenue base produces predictable cash flows and reduces demand cyclicality, supporting capital planning, infrastructure investment and long-term service quality.

Sustained deleveraging trend

A multi-year decline in absolute debt and an improving debt/equity ratio materially strengthens financial flexibility. Lower leverage reduces refinancing and interest risk, making the company better positioned to fund capex, pursue low-carbon projects, and support dividends if operating cash flow normalizes.

Return to strong profitability

Rebounding to a high net margin in 2025 demonstrates operational resilience and the capacity of regulated operations to produce meaningful earnings when underpinned by tariffs and contracts. Sustained margin recovery would improve retained earnings and bolster investment and dividend sustainability.

Negative Factors

Sharp deterioration in cash conversion

A severe decline in operating and free cash flow reduces internal funding for capex, debt reduction and dividends. Even with accounting profitability, weak cash conversion strains liquidity and increases reliance on external funding or dividend cuts if the trend persists over the medium term.

Earnings volatility year-to-year

Wide swings between a net loss and a strong profit weaken confidence in recurring earnings. For regulated utilities, volatility complicates long-term planning, may signal timing or nonrecurring items, and raises the risk that dividends and reinvestment plans will need adjustment if earnings revert unpredictably.

High absolute debt vs equity base

Although leverage ratios improved, the absolute debt stock is still large relative to equity. That limits maneuverability if cash flow weakens, increases exposure to interest or refinancing stress, and could constrain funding for strategic transitions like renewable gas or hydrogen projects.

Enagas SA Business Overview & Revenue Model

Company Description

Enagás, S.A. develops, operates, and maintains gas infrastructures in Spain and internationally. It operates through Gas Transmission, Regasification, and Storage of Gas segments. The company provides gas transmission services through primary and secondary transmission pipelines; and natural gas regasification services, as well as operates underground storage facilities. It is also involved in the operation and technical management of the basic network and secondary transportation network for natural gas. In addition, the company engages in the financial management activities; development of industrial projects and activities relating to LNG terminals, and hydrogen production and transport infrastructures; development and implementation of facilities for the supply of natural gas as fuel for vehicles, including its design, construction, and maintenance; and provision of commercial services for the purpose of enhancing the daily operational management of gas shippers. Further, it is involved in the development of projects to promote the role of renewable gases in the energy transition; and production of solar energy. Enagás, S.A. was incorporated in 1972 and is headquartered in Madrid, Spain.

How the Company Makes Money

Enagas generates revenue primarily through regulated activities related to the transportation and storage of natural gas. The company's core revenue streams include tariffs charged for the use of its gas infrastructure, which are set by regulatory authorities. Additionally, Enagas earns income from its regasification plants where liquefied natural gas (LNG) is converted back to gas for distribution. The company also benefits from strategic partnerships and long-term contracts with various gas suppliers and utilities, enhancing its revenue stability. Furthermore, Enagas is involved in international projects and collaborations that expand its market reach and diversify its revenue sources.

Enagas SA Financial Statement Overview

Summary

Profitability rebounded in 2025 after a net loss in 2024, and leverage is improving as debt has trended down. The main drag is weak cash conversion: operating cash flow and free cash flow fell sharply in 2025 versus prior years, raising near-term concerns for dividends and deleveraging.

Income Statement

Revenue has been broadly stable with modest growth in 2025 (+3.1%) after several years of slight declines. Profitability is the key swing factor: 2024 posted a sizable net loss (negative margin), while 2025 returned to solid profitability with a strong net margin (~28%). The main weakness is earnings consistency—large year-to-year volatility in operating and net results reduces confidence in the run-rate despite the regulated business profile.

Balance Sheet

Leverage remains elevated but improving: total debt fell meaningfully from 2020–2025, and debt-to-equity improved to ~1.23x in 2025 (from ~1.70x in 2021). Equity has been relatively stable, and returns on equity were healthy in most years (low-to-mid teens) but turned negative in 2024 due to the loss. Strength is the deleveraging trend; weakness is that absolute debt remains high for the equity base, leaving less flexibility if profitability weakens.

Cash Flow

Cash generation has weakened notably in 2025: operating cash flow dropped to ~€213m and free cash flow fell to ~€94m (down ~62% year over year), despite positive net income. Prior years (2020–2023) showed materially stronger free cash flow, and 2024 still generated robust free cash flow (~€357m). The key concern is the recent conversion of profits into cash and the sharp decline in free cash flow, which can pressure dividends/debt paydown if sustained.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	920.51M	949.10M	905.55M	907.57M	957.10M	975.69M
Gross Profit	713.37M	208.90M	846.18M	851.63M	905.45M	926.63M
EBITDA	987.06M	520.40M	94.27M	810.84M	885.63M	859.11M
Net Income	134.55M	267.50M	-299.31M	342.53M	375.77M	403.83M
Balance Sheet
Total Assets	7.06B	6.82B	7.50B	8.51B	9.40B	9.87B
Cash, Cash Equivalents and Short-Term Investments	1.11B	745.00M	1.42B	857.55M	1.39B	1.46B
Total Debt	2.94B	2.82B	3.31B	3.81B	4.43B	5.26B
Total Liabilities	4.80B	4.51B	5.10B	5.51B	6.18B	6.77B
Stockholders Equity	2.24B	2.30B	2.38B	2.98B	3.20B	3.09B
Cash Flow
Free Cash Flow	248.72M	94.42M	357.10M	411.87M	635.25M	510.08M
Operating Cash Flow	377.28M	212.54M	454.99M	568.84M	726.03M	579.93M
Investing Cash Flow	959.85M	88.78M	930.98M	-81.83M	669.84M	100.58M
Financing Cash Flow	-1.44B	-816.60M	-962.57M	-990.16M	-1.52B	-102.95M

Enagas SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ENG, the sentiment is Positive. The current price of 15.34 is above the 20-day moving average (MA) of 14.75, above the 50-day MA of 14.03, and above the 200-day MA of 13.46, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 73.90 is Negative, neither overbought nor oversold. The STOCH value of 79.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ENG.

Enagas SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTGY	69 Neutral	€25.30B	12.11	22.84%	6.66%	2.66%	1.26%
ENG	67 Neutral	€4.01B	11.87	3.85%	7.01%	5.35%	―
IBE	67 Neutral	€133.92B	21.48	11.50%	2.92%	0.50%	-19.06%
ANE	66 Neutral	€7.18B	9.60	13.06%	2.02%	2.05%	307.60%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ELE	63 Neutral	€36.60B	16.65	26.20%	4.32%	-2.54%	103.14%
RED	62 Neutral	€8.48B	16.81	10.14%	4.27%	-23.15%	-39.13%

Enagas SA Corporate Events

Enagás Calls 2026 Shareholders’ Meeting, Seeks Expanded Debt Issuance Powers

Enagás has convened its Ordinary General Shareholders’ Meeting for 25–26 March 2026 in Madrid, where investors will be asked to approve the 2025 annual and consolidated accounts, the non‑financial and sustainability report, the allocation of results, and the Board’s management for the year. The company will also seek shareholder backing for the re‑election of several directors, the appointment of a new independent director, and the maintenance of a 15‑member board, reinforcing continuity in its governance structure.

In addition, Enagás will request broad authority for the Board over the next five years to issue up to €5 billion in fixed‑income instruments and up to €1 billion in convertible or exchangeable securities, with the capacity to increase share capital and exclude pre‑emptive rights within legal limits. These financing powers, together with an advisory vote on director pay and procedural delegations, are designed to give the company flexibility to fund future projects and manage its capital structure while aligning governance and remuneration with shareholder oversight.

The most recent analyst rating on (ES:ENG) stock is a Buy with a EUR17.70 price target. To see the full list of analyst forecasts on Enagas SA stock, see the ES:ENG Stock Forecast page.

Enagás Sets Date to Unveil 2025 Results and 2026 Targets

Enagás SA, the Spanish gas infrastructure operator, will publish its full-year 2025 financial results and set out its 2026 targets on 17 February 2026, before the market opens, providing investors and analysts with updated visibility on its performance and strategic roadmap. The company will outline these figures and objectives in a webcast and teleconference led by CEO Arturo Gonzalo that same morning, underlining its efforts to maintain transparent communication with the market at a time when energy infrastructure operators face close scrutiny over earnings resilience and their role in the evolving energy transition.

The most recent analyst rating on (ES:ENG) stock is a Buy with a EUR17.70 price target. To see the full list of analyst forecasts on Enagas SA stock, see the ES:ENG Stock Forecast page.

Enagás Sets Date to Present 2025 Results and 2026 Targets

Enagás SA has scheduled the publication of its 2025 annual results and guidance for 2026 for Tuesday, 17 February 2026, before the market opens. On the same day, at 08:30, Chief Executive Officer Arturo Gonzalo will present the figures and outlook in a conference call and webcast accessible via telephone in Spanish and English and through the company’s website, signaling the importance of the announcement for investors and other stakeholders monitoring the company’s performance and strategic direction.

The most recent analyst rating on (ES:ENG) stock is a Buy with a EUR17.70 price target. To see the full list of analyst forecasts on Enagas SA stock, see the ES:ENG Stock Forecast page.