Elecnor (ENO) AI Stock Analysis

• Market Cap: €2.04B
• Dividend Yield: 13.3%
• Average Volume (3M): 146.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: 11.61%
• EPS Growth: -212.68%
• Country: ES
• Employees: 20,583
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): N/A
• Shares Outstanding: 87,000,000
• 10 Day Avg. Volume: 217,874
• 30 Day Avg. Volume: 146,157
• PEG Ratio: <0.01
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -559.74
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €28.00 ▲(16.18% Upside)

Elecnor's overall stock score is driven by its stable financial performance and positive technical indicators, despite challenges in valuation due to a negative P/E ratio. The high dividend yield is a significant positive factor, but the lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Elecnor's services in infrastructure projects, supporting long-term business expansion.

Balance Sheet Health

Reduced leverage risk enhances financial stability, providing Elecnor with greater flexibility to invest in growth opportunities.

Net Profit Margin Improvement

Improved net profit margins reflect better cost management and operational efficiency, strengthening Elecnor's profitability.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests liquidity issues, which could constrain Elecnor's ability to finance new projects or manage debt.

EBIT Decline

A decline in EBIT indicates operational challenges, potentially affecting Elecnor's ability to sustain profitability in the long term.

Cash Generation Ability

Reduced cash generation from operations relative to net income may hinder Elecnor's capacity to reinvest in its business.

Elecnor Business Overview & Revenue Model

Company Description

Elecnor, S.A. engages in the infrastructure and concessions businesses in Spain and internationally. The company operates power transport lines and transformation substations; generates power from wind farms, as well as solar, combined cycle, and hydroelectric plants; and provides gas related services covering gas pipeline transportation and distribution. It also develops telecommunications infrastructures and systems; carries out turnkey projects covering electrification, signaling, interlock, communications, and control systems for railways, subways, trams, and trolleybuses; and offers technical, commercial, and ancillary services, as well as maintenance services. In addition, the company is involved in civil and industrial works, construction, and edification business; hydrological planning activities; operating water transportation and distribution networks; treatment and reuse of waste and sewerage; and water purification activities; and waste management, forestry, maintenance of green areas, street cleaning, and the maintenance and infrastructure conservation activities, as well as provides electromechanical systems; and turnkey solutions through its waste treatment engineering developments. Further, it acts as an installation contractor for buildings, cultural and recreational centers, airport and railway terminal buildings, hotels and hospitals, industrial plants, cogeneration and trigeneration plants, etc.; and designs, engineers, and develops solutions and integration systems in aerospace industry, and information and telecommunications technologies. Additionally, the company operates as a turnkey developer and operator of wind power farms; invests and develops solar photovoltaic and thermoelectric solar energy projects; and constructs and operates wastewater treatment plants. Elecnor, S.A. was incorporated in 1958 and is based in Madrid, Spain. Elecnor, S.A. is a subsidiary of Cantiles XXI, S.L.

How the Company Makes Money

Elecnor generates revenue through multiple streams, primarily from the execution of large-scale infrastructure projects in renewable energy, telecommunications, and water management. The company typically earns money through contract agreements for designing, building, and maintaining energy and telecommunications facilities. Key revenue sources include government contracts, private sector projects, and public-private partnerships, particularly in renewable energy initiatives. Elecnor also benefits from providing specialized engineering services and has established strategic partnerships with various stakeholders, including technology firms and energy companies, which enhance its project capabilities and market reach.

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. The cash flow position requires attention, particularly in maintaining positive free cash flow. Overall, the company is in a stable financial position with room for improvement in operational efficiency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.15B	3.81B	3.79B	3.39B	3.12B	2.46B
Gross Profit	1.67B	1.87B	1.63B	1.57B	1.54B	1.22B
EBITDA	133.79M	178.47M	200.98M	157.32M	269.10M	233.04M
Net Income	-164.57M	705.20M	110.06M	102.81M	85.88M	78.30M
Balance Sheet
Total Assets	3.50B	3.61B	4.08B	3.56B	3.29B	3.05B
Cash, Cash Equivalents and Short-Term Investments	431.82M	429.01M	336.87M	385.36M	399.64M	401.36M
Total Debt	406.76M	270.31M	668.44M	1.04B	1.01B	973.76M
Total Liabilities	2.60B	2.44B	3.15B	2.72B	2.65B	2.45B
Stockholders Equity	899.73M	1.17B	906.45M	807.21M	609.26M	576.08M
Cash Flow
Free Cash Flow	165.18M	-2.43M	111.51M	70.96M	98.47M	-35.70M
Operating Cash Flow	254.97M	94.45M	206.00M	226.87M	206.19M	193.99M
Investing Cash Flow	898.09M	963.31M	-268.06M	-128.55M	-99.96M	-209.60M
Financing Cash Flow	-1.17B	-1.04B	73.70M	-113.91M	-109.75M	82.13M

Elecnor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ENO, the sentiment is Negative. The current price of 24.1 is below the 20-day moving average (MA) of 27.86, below the 50-day MA of 27.93, and above the 200-day MA of 22.55, indicating a neutral trend. The MACD of -0.96 indicates Positive momentum. The RSI at 28.88 is Positive, neither overbought nor oversold. The STOCH value of 5.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€40.47B	12.10	69.30%	1.40%	5.75%	346.20%
ACS	70 Outperform	€22.13B	25.16	19.75%	2.37%	25.47%	7.63%
FCC	70 Outperform	€5.32B	22.44	5.28%	4.45%	5.00%	-64.19%
SCYR	65 Neutral	€2.97B	29.42	10.80%	5.30%	2.03%	-32.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENO	60 Neutral	€2.04B	-21.96	-6.79%	13.30%	11.61%	-212.68%
OHLA	48 Neutral	€480.88M	-12.75	-6.41%	―	1.39%	72.34%