Elecnor (ENO) AI Stock Analysis

• Market Cap: €1.98B
• Dividend Yield: 35.44%
• Average Volume (3M): 90.52K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.02
• Revenue Growth: 0.46%
• EPS Growth: -212.00%
• Country: ES
• Employees: 20,583
• Sector: Industrials
• Sector Strength: 95
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): -1.69
• Shares Outstanding: 87,000,000
• 10 Day Avg. Volume: 80,092
• 30 Day Avg. Volume: 90,520
• PEG Ratio: N/A
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.58
• 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: €21.50
• Price Target Upside: -8.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: €21.50 ▼(-8.12%Downside)

Elecnor's overall stock score is driven by a solid financial performance with strong revenue and net income growth, despite challenges in EBIT and cash flow. However, technical analysis indicates overbought conditions, potentially leading to a correction. Valuation concerns arise from a negative P/E ratio, despite a high dividend yield, reflecting potential profitability issues.

Elecnor Business Overview & Revenue Model

Company Description

Elecnor (ENO) is a global infrastructure, renewable energy, and technology company headquartered in Spain. It operates across a variety of sectors including power generation and transmission, telecommunications, gas, railways, water, and construction. The company is involved in developing, building, and maintaining projects that enhance infrastructure and energy solutions worldwide.

How the Company Makes Money

Elecnor makes money through a diversified revenue model primarily centered around its infrastructure and energy sectors. The company earns revenue by undertaking large-scale projects, such as the construction and maintenance of electricity transmission lines, renewable energy facilities (including wind and solar farms), and telecommunication networks. Additionally, Elecnor generates income from engineering and construction services, which encompass the design and execution of infrastructure projects. The company also benefits from long-term service contracts and partnerships with governments and private entities, which provide stable and recurring income streams. Their investment in renewable energy projects allows them to capitalize on the increasing global demand for sustainable energy solutions.

Elecnor Financial Statement Overview

Summary

Elecnor demonstrates a solid growth trajectory in revenue and net income, despite challenges in EBIT and cash flow. The balance sheet shows improved equity and reduced leverage, enhancing financial stability. However, the cash flow position requires attention, particularly in maintaining positive free cash flow.

Income Statement

Elecnor's revenue has shown moderate growth, with a notable increase from 2023 to 2024. However, the company experienced a significant decline in EBIT, resulting in a negative EBIT margin for 2024. Gross profit margin remains strong, but net profit margin saw a considerable improvement due to a substantial net income increase in 2024.

Balance Sheet

The company has strengthened its equity position over time, reflected in a higher equity ratio. Debt levels have decreased, leading to a lower debt-to-equity ratio, which indicates reduced leverage risk. Return on equity has improved significantly due to increased net income, showcasing enhanced profitability.

Cash Flow

Elecnor's cash flow from operations has declined, and free cash flow turned negative in 2024, indicating potential liquidity challenges. The operating cash flow to net income ratio has decreased, suggesting less cash generation from operations relative to net income. However, the company has managed its capital expenditures efficiently in previous years.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.81B	3.79B	3.61B	3.12B	2.46B
Gross Profit	1.87B	1.63B	1.80B	1.54B	1.22B
EBITDA	43.88M	200.98M	157.32M	269.10M	233.04M
Net Income	705.20M	110.06M	102.81M	85.88M	78.30M
Balance Sheet
Total Assets	3.61B	4.08B	3.56B	3.29B	3.05B
Cash, Cash Equivalents and Short-Term Investments	429.01M	336.87M	385.36M	399.64M	401.36M
Total Debt	270.31M	668.44M	1.04B	1.01B	1.09B
Total Liabilities	2.44B	3.15B	2.72B	2.65B	2.45B
Stockholders Equity	1.17B	906.45M	807.21M	609.26M	576.08M
Cash Flow
Free Cash Flow	-2.43M	111.51M	70.96M	98.47M	-35.70M
Operating Cash Flow	94.45M	206.00M	226.87M	206.19M	193.99M
Investing Cash Flow	963.31M	-268.06M	-128.55M	-99.96M	-209.60M
Financing Cash Flow	-1.04B	73.70M	-113.91M	-109.75M	82.13M

Elecnor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.40
• 50DMA: Positive
• 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:ENO, the sentiment is Positive. The current price of 23.4 is above the 20-day moving average (MA) of 22.47, above the 50-day MA of 21.54, and above the 200-day MA of 16.61, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 65.49 is Neutral, neither overbought nor oversold. The STOCH value of 68.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ENO.

Elecnor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FER	78 Outperform	€32.47B	10.14	65.54%	1.72%	7.43%	608.14%
SCYR	73 Outperform	€2.81B	23.89	12.85%	5.60%	7.52%	-31.49%
FCC	73 Outperform	€5.47B	11.98	8.78%	4.33%	0.50%	-26.45%
ACS	69 Neutral	€15.74B	18.70	16.48%	1.41%	16.50%	7.64%
Sector *	66 Neutral	€4.17B	9.25	18.29%	4.01%	3.28%	-103.53%
OHLA	59 Neutral	€449.79M	0.73	-11.26%	―	10.68%	-796.06%
ENO	50 Neutral	€1.98B	18.38	-11.39%	35.44%	0.46%	-212.00%

Elecnor Corporate Events

Elecnor Re-elects Executive Committee Member

The Board of Directors of Elecnor has re-elected Mr. Rafael Martín de Bustamante Vega as a member of its Executive Committee for another four-year term. This decision was made following the Ordinary General Shareholders’ Meeting, indicating a continuity in leadership that could impact the company’s strategic direction and stability.

Elecnor Group’s Forward-Looking Statements and Financial Projections

Elecnor Group has released a communication containing forward-looking statements and financial projections. The company advises caution as these statements are subject to risks and uncertainties, which could significantly impact actual results and developments.

Elecnor Reports Strong First Quarter Growth in 2025

Elecnor reported a 12% increase in net turnover and a 54.7% rise in net profit from continuing operations for the first quarter of 2025, compared to the same period in 2024. The company’s international portfolio, comprising 70% of its executable production, highlights its strong position in the global market, particularly in renewable energy projects.