Enagas SA (ENG) AI Stock Analysis

• Market Cap: €3.48B
• Dividend Yield: 7.11%
• Average Volume (3M): 664.42K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.36
• Revenue Growth: 2.37%
• EPS Growth: N/A
• Country: ES
• Employees: 1,395
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.25
• Shares Outstanding: 261,990,080
• 10 Day Avg. Volume: 533,343
• 30 Day Avg. Volume: 664,419
• PEG Ratio: 0.05
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 3.40
• P/FCF Ratio: 8.61
• 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: €14.65
• Price Target Upside: 9.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: €14.00 ▲(5.11% Upside)

Enagas SA's overall stock score is driven by a stable financial performance with strong gross profit margins but offset by high leverage and cash flow concerns. Technical analysis indicates a lack of strong momentum, while the valuation is supported by a high dividend yield despite a potentially high P/E ratio.

Enagas SA Business Overview & Revenue Model

Company Description

Enagas SA (ENG) is a leading Spanish company specializing in the transportation, storage, and regasification of natural gas. As the primary operator of the national gas grid in Spain, Enagas plays a critical role in the energy infrastructure, providing essential services to ensure a reliable and efficient supply of natural gas. The company also engages in the development of renewable energy projects and innovative solutions to support the transition to a low-carbon economy.

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

Enagas SA demonstrates strong operational efficiency with high EBIT and EBITDA margins. However, the negative net income significantly affects overall profitability and shareholder returns, as seen in the income statement and balance sheet. Cash flow remains robust, yet the negative net income creates concerns for future sustainability. While leverage is moderate, the company must address profitability issues to enhance financial health and shareholder value.

Income Statement

Enagas SA's TTM (Trailing-Twelve-Months) gross profit margin is 60.85%, indicating a strong ability to convert revenue into profit before expenses. However, the net profit margin is negative at -19.23%, primarily due to the negative net income, highlighting significant profitability challenges. Revenue growth has been stagnant, with the latest TTM revenue slightly decreasing compared to the previous year. While EBIT and EBITDA margins stand at 17.84% and 60.74% respectively, indicating operational efficiency, the negative net income signals underlying profitability concerns.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 1.28, suggesting moderate leverage. The return on equity is negative at -7.72%, driven by the negative net income, which is concerning. The equity ratio is 31.72%, indicating a reasonable proportion of assets financed by equity. Overall, while the leverage is manageable, the negative ROE raises red flags about shareholder returns.

Cash Flow

Enagas SA's cash flow statement shows a positive free cash flow of €353.91 million in the latest TTM, slightly down from the prior period, resulting in a marginal decline in free cash flow growth. The operating cash flow to net income ratio is negative due to the negative net income, but the free cash flow to net income ratio is also skewed negatively. Despite the strong operating cash flow of €493.29 million, the negative net income impacts overall cash flow health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	920.51M	905.55M	907.57M	957.10M	975.69M	1.05B
Gross Profit	713.37M	846.18M	851.63M	905.45M	926.63M	1.00B
EBITDA	987.06M	94.27M	810.84M	744.40M	702.86M	800.60M
Net Income	134.55M	-299.31M	342.53M	375.77M	403.83M	444.00M
Balance Sheet
Total Assets	7.06B	7.50B	8.51B	9.40B	9.87B	9.01B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.42B	857.55M	1.39B	1.46B	868.69M
Total Debt	2.94B	3.31B	3.81B	4.43B	5.26B	4.81B
Total Liabilities	4.80B	5.10B	5.51B	6.18B	6.77B	6.00B
Stockholders Equity	2.24B	2.38B	2.98B	3.20B	3.09B	2.99B
Cash Flow
Free Cash Flow	248.72M	357.10M	411.87M	635.25M	510.08M	550.93M
Operating Cash Flow	377.28M	454.99M	568.84M	726.03M	579.93M	609.53M
Investing Cash Flow	983.95M	930.98M	-81.83M	669.84M	100.58M	-741.97M
Financing Cash Flow	-1.48B	-962.57M	-990.16M	-1.52B	-102.95M	-102.37M

Enagas SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ENG, the sentiment is Neutral. The current price of 13.32 is above the 20-day moving average (MA) of 13.28, below the 50-day MA of 13.39, and above the 200-day MA of 12.63, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 54.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:ENG.

Enagas SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.37B	18.10	5.54%	3.61%	6.63%	11.55%
ENG	60 Neutral	€3.48B	25.74	5.64%	7.11%	2.37%	―
0N9G	―	€27.57B	12.93	26.86%	―	―	―
0NPV	―	€23.65B	12.96	22.84%	―	―	―
0HIT	―	€106.14B	19.85	10.92%	―	―	―
0RI5	―	€8.95B	24.34	10.14%	―	―	―
5BP	―	€7.46B	10.16	13.06%	―	―	―

Enagas SA Corporate Events

Enagás Announces Additional Dividend Payment

Enagás SA has announced an additional dividend payment of 0.6 euros per share, scheduled for July 3, 2025, following approval at the General Shareholders’ Meeting. This payment complements a previous dividend of 0.4 euros per share, aligning with the company’s policy to distribute 1 euro per share annually, reflecting its commitment to shareholder returns.

The most recent analyst rating on (ES:ENG) stock is a Hold with a EUR12.85 price target. To see the full list of analyst forecasts on Enagas SA stock, see the ES:ENG Stock Forecast page.

Enagás Wins $194 Million Arbitration Case Against Peru

Enagás has won an arbitration case against the Republic of Peru, with the International Centre for Settlement of Investment Disputes ruling in its favor. Peru has been ordered to pay Enagás $194 million due to breaches of the Peru-Spain Agreement for the Promotion and Reciprocal Protection of Investments related to Enagás’s investment in the Peruvian Gas Pipeline project. The ruling also addresses restrictions on repatriating dividends from Enagás’s subsidiary in Peru, which were deemed violations of the agreement. This decision will result in an accounting loss for Enagás due to the discrepancy between the awarded amount and the receivable account recorded in their balance sheet. The company is seeking an amicable resolution with Peru and remains committed to its investment plans, including renewable hydrogen infrastructure projects.

The most recent analyst rating on (ES:ENG) stock is a Hold with a EUR13.50 price target. To see the full list of analyst forecasts on Enagas SA stock, see the ES:ENG Stock Forecast page.