Enwell Energy (ENW) AI Stock Analysis

• Market Cap: £48.10M
• Dividend Yield: N/A
• Average Volume (3M): 24.16K
• Price to Earnings (P/E): 7.0
• Beta (1Y): -0.27
• Revenue Growth: -54.53%
• EPS Growth: -64.24%
• Country: UK
• Employees: 239
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 320,637,820
• 10 Day Avg. Volume: 34,083
• 30 Day Avg. Volume: 24,159
• PEG Ratio: -0.36
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 2.88
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 21.00p ▲(27.27% Upside)

Enwell Energy's overall stock score is primarily influenced by its strong financial position and positive technical indicators. However, the significant risks associated with the suspension of production licenses in Ukraine and the resulting financial setbacks weigh heavily on the score. The stock's undervaluation offers some potential upside, but the geopolitical and operational challenges present substantial risks.

Positive Factors

Profitability

Strong profitability metrics, including a high net profit margin, indicate efficient operations and the ability to generate healthy returns for shareholders, providing a buffer against industry volatility.

Balance Sheet Health

A strong balance sheet with low leverage and a high equity ratio reflects conservative financial management, ensuring financial stability and flexibility in capital allocation.

Cash Flow Stability

Stable cash flow performance indicates effective conversion of profits into cash, supporting ongoing operations and potential investments in growth opportunities.

Negative Factors

Revenue Decline

The declining revenue trend poses a challenge to maintaining growth and could impact long-term profitability if not addressed, potentially limiting future expansion.

Inconsistent Free Cash Flow Growth

Inconsistent free cash flow growth reflects variability in capital expenditures and operating cash flows, which may hinder the company's ability to invest consistently in strategic initiatives.

Revenue Growth Challenges

Challenges in revenue growth can strain the company's financial performance, affecting its ability to scale operations and compete effectively in the market.

Enwell Energy Business Overview & Revenue Model

Company Description

Enwell Energy plc explores and produces oil and gas in Ukraine. The company owns and operates a 100% production license in gas and condensate fields in the Poltava region comprising the Mekhediviska-Golotvschinska and Svyrydivske fields, as well as the Vasyschevskoye field located in the Kharkiv region. It also holds 100% interest in the Svystunivsko-Chervonolutskyi exploration license located in Poltava region of north-eastern Ukraine. Enwell Energy plc was formerly known as Regal Petroleum plc and changed its name to Enwell Energy plc in May 2020. The company was incorporated in 2002 and is headquartered in London, the United Kingdom. Enwell Energy plc is a subsidiary of Smart Holding (Cyprus) Limited.

How the Company Makes Money

Enwell Energy generates revenue primarily through the sale of crude oil and natural gas, which are extracted from its operational sites in Ukraine. The company earns money by selling these hydrocarbons to various customers, including energy companies, industrial users, and other entities in the energy supply chain. Key revenue streams include the sale of produced oil and gas, as well as any associated by-products. Additionally, strategic partnerships with local and international firms enhance its operational capabilities and market reach, further contributing to its earnings. The pricing of oil and gas, market demand, and production levels directly impact the company's revenue. Furthermore, the company may benefit from government policies and regulations related to the energy sector in Ukraine.

Enwell Energy Financial Statement Overview

Summary

Enwell Energy exhibits a strong financial position with notable profitability and conservative leverage. While revenue growth has faced challenges, the company's profitability and stable cash flow metrics provide a buffer against industry volatility.

Income Statement

Enwell Energy has demonstrated a mixed revenue trajectory with a decline from 2022 to 2023 and then to 2024, reflecting challenges in maintaining revenue growth. However, the company maintains robust profitability metrics, including a strong net profit margin and a relatively high EBIT margin, indicating efficient operations despite revenue headwinds.

Balance Sheet

The company's balance sheet is solid, characterized by low leverage with a minimal debt-to-equity ratio, indicating conservative financial management. The high equity ratio reflects a strong capital position, while the return on equity suggests the company is generating healthy returns for shareholders.

Cash Flow

Cash flow performance is stable with a solid operating cash flow to net income ratio, indicating effective conversion of profits into cash. The free cash flow is positive, though its growth has been inconsistent, reflecting variability in capital expenditures and operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.17M	44.93M	62.19M	133.38M	121.35M	37.89M
Gross Profit	11.33M	28.23M	38.97M	85.92M	73.93M	20.12M
EBITDA	18.15M	36.76M	44.59M	82.55M	79.30M	19.59M
Net Income	9.32M	23.72M	26.49M	60.18M	51.12M	3.19M
Balance Sheet
Total Assets	190.84M	191.01M	183.33M	241.73M	208.59M	145.96M
Cash, Cash Equivalents and Short-Term Investments	100.88M	99.40M	76.49M	88.65M	92.54M	60.99M
Total Debt	966.73K	835.00K	283.00K	487.00K	1.10M	616.00K
Total Liabilities	18.87M	19.57M	21.21M	41.08M	30.07M	20.35M
Stockholders Equity	171.96M	171.44M	162.12M	200.66M	178.52M	125.61M
Cash Flow
Free Cash Flow	10.43M	30.62M	49.68M	1.63M	31.16M	2.23M
Operating Cash Flow	13.26M	34.56M	60.52M	27.03M	69.37M	19.32M
Investing Cash Flow	-3.51M	-3.90M	-10.83M	-20.64M	-42.72M	-16.84M
Financing Cash Flow	-178.38K	-436.00K	-60.03M	-398.00K	-555.00K	-543.00K

Enwell Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENW, the sentiment is Negative. The current price of 16.5 is below the 20-day moving average (MA) of 19.65, below the 50-day MA of 18.14, and below the 200-day MA of 18.50, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 23.49 is Positive, neither overbought nor oversold. The STOCH value of 33.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ENW.

Enwell Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASP	72 Outperform	£64.80M	6.88	5.26%	―	-58.10%	100.00%
ENW	67 Neutral	£48.10M	6.99	5.77%	―	-54.53%	-64.24%
PHAR	66 Neutral	£79.83M	19.55	1.91%	6.46%	-9.43%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ZPHR	53 Neutral	£56.72M	-2.12	-50.13%	―	-35.06%	-550.00%

Enwell Energy Corporate Events

Enwell Energy Faces Continued License Suspensions Amid Legal Challenges

Enwell Energy has announced the continued suspension of its MEX-GOL, SV, and VAS production licenses in Ukraine due to sanctions on its ultimate beneficial owners. The company is actively pursuing legal and arbitration proceedings to challenge these suspensions and seek compensation for damages, while also prioritizing the safety of its personnel and maintaining cash reserves of approximately $99.9 million.

Enwell Energy Faces Financial Setback Amid Ukrainian License Suspensions

Enwell Energy PLC reported a significant decline in its financial performance for the first half of 2025, primarily due to the suspension of its production licenses in Ukraine amid ongoing geopolitical tensions. The company’s revenue plummeted by 86% compared to the previous year, resulting in a net loss of $1.4 million. Despite these challenges, Enwell Energy is pursuing legal and arbitration proceedings to resolve the suspension issues and is continuing limited development activities funded by its existing cash reserves, which remain largely outside Ukraine to mitigate risks.