Enlight Renewable Energy (ENLT) AI Stock Analysis

• Market Cap: $10.74B
• Dividend Yield: N/A
• Average Volume (3M): 356.15K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.12
• Revenue Growth: 36.33%
• EPS Growth: 94.56%
• Country: IL
• Employees: 360
• Sector: Utilities
• Sector Strength: 81
• Industry: Renewable Utilities
• EPS (TTM): 4.10
• Shares Outstanding: 120,007,416
• 10 Day Avg. Volume: 377,187
• 30 Day Avg. Volume: 356,148
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 54.01
• Enterprise Value/Gross Profit: 93.28
• Enterprise Value/Ebitda: 55.53
• 1Y Price Target: $8,607.76
• Price Target Upside: -4.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: 10,152.00 ▲(13.08% Upside)

Enlight Renewable Energy's stock is rated positively due to strong earnings call results and technical momentum. Financial performance is solid but tempered by high leverage and negative free cash flow growth. Valuation is moderate, with no dividend yield to attract income investors. The positive earnings call and technical indicators are the most significant factors driving the score.

Positive Factors

Growth Forecast

Management anticipates achieving $1 billion in revenue by 2027, which reflects a significant growth trajectory.

Revenue Performance

The company's revenue and adjusted EBITDA beat consensus expectations due to tax credit sales and higher electricity sales.

Risk Management

Battery sourcing through Tesla reduces risk for new constructions.

Negative Factors

Conservative Guidance

The guidance for 2025 is conservative as it does not assume contributions from projects expected to come online in the second half of the year.

Market Outlook

The analyst maintains a neutral rating and a price target of $18, indicating a cautious outlook on the stock despite the company's progress.

Tax Uncertainty

There is uncertainty from the expected tax bill, impacting ENLT's returns on its projects.

Enlight Renewable Energy Business Overview & Revenue Model

Company Description

Enlight Renewable Energy (ENLT) is a leading company in the renewable energy sector, specializing in the development, financing, construction, and operation of solar and wind energy projects. The company is committed to advancing the transition to sustainable energy by deploying large-scale renewable energy projects that contribute to reducing carbon emissions globally. Enlight's portfolio consists of diverse and strategically located renewable energy assets that serve various markets worldwide.

How the Company Makes Money

Enlight Renewable Energy primarily generates revenue through the sale of electricity produced from its renewable energy projects, including solar and wind farms. The company enters into long-term power purchase agreements (PPAs) with utilities, corporations, and government entities, ensuring a stable and predictable income stream. Additionally, Enlight may engage in the sale of renewable energy certificates (RECs) and carbon credits, further enhancing its revenue. Strategic partnerships and collaborations with other energy companies and investors also play a significant role in expanding its project portfolio and market reach, contributing to its financial growth.

Enlight Renewable Energy Financial Statement Overview

Summary

Enlight Renewable Energy shows robust revenue growth and operational efficiency with a 52.7% increase in revenue and a strong gross profit margin of 52.5%. However, decreasing net profit margin and high leverage with a debt-to-equity ratio of 2.64 pose financial risks. Cash flows are strong, but reliance on financing signals liquidity concerns.

Income Statement

Enlight Renewable Energy has shown strong revenue growth with a significant increase of 52.7% from 2023 to 2024. Gross Profit Margin is healthy at 52.5%, indicating efficient production and cost management. However, the Net Profit Margin decreased to 11.1% due to declining net income, highlighting some operational challenges. The EBIT and EBITDA margins are robust, reflecting strong operational performance and cash generation capabilities.

Balance Sheet

The company has a stable equity base with an equity ratio of 21.3%, but the debt-to-equity ratio is high at 2.64, indicating significant leverage which could pose financial risks. Return on Equity is moderate at 3.7%, suggesting the need for better profitability to enhance shareholder returns. Overall, the balance sheet reflects solid asset growth yet signals caution due to high leverage.

Cash Flow

Enlight Renewable Energy exhibits strong operating cash flow relative to net income, with a ratio of 4.37, highlighting effective cash management. However, free cash flow growth is constrained, and the company has been reliant on financing activities. The Free Cash Flow to Net Income ratio is 4.37, indicating substantial cash generation relative to profits, but the negative free cash flow in prior periods signals potential liquidity concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	398.80M	261.14M	192.05M	330.88M	241.69M
Gross Profit	209.21M	144.50M	111.10M	61.24M	136.27M
EBITDA	292.68M	255.01M	44.38M	81.26M	-8.28M
Net Income	44.21M	70.92M	24.73M	11.22M	-150.77M
Balance Sheet
Total Assets	5.55B	4.63B	3.53B	8.82B	5.84B
Cash, Cash Equivalents and Short-Term Investments	387.43M	409.11M	231.67M	980.57M	423.86M
Total Debt	3.12B	2.70B	2.16B	5.66B	3.76B
Total Liabilities	4.11B	3.20B	2.48B	6.46B	4.19B
Stockholders Equity	1.18B	1.17B	803.59M	1.66B	1.18B
Cash Flow
Free Cash Flow	193.07M	-582.61M	-548.35M	-1.30B	-1.04B
Operating Cash Flow	193.07M	149.62M	90.32M	168.43M	136.30M
Investing Cash Flow	-941.37M	-798.96M	-819.49M	-2.08B	-1.69B
Financing Cash Flow	745.99M	855.30M	684.31M	2.44B	1.19B

Enlight Renewable Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8978.00
• 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 IL:ENLT, the sentiment is Positive. The current price of 8978 is above the 20-day moving average (MA) of 8523.90, above the 50-day MA of 8200.02, and above the 200-day MA of 6619.65, indicating a bullish trend. The MACD of 224.47 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 76.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ENLT.

Enlight Renewable Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENLT	77 Outperform	$10.74B	25.98	9.28%	―	36.33%	94.56%
Sector *	62 Neutral	C$8.32B	-6.40	-16.78%	4.55%	-2.14%	-200.32%
ENRG	61 Neutral	7.19B	33.22		3.04%	12.94%	-3.23%
MSKE	60 Neutral	3.17B	71.44		―	―	―
ECNR	47 Neutral	1.98B	61.68		―	-7.47%	-123.28%
DORL	45 Neutral	2.82B	―		―	―	―
HMGS	42 Neutral	37.86M	―		―	―	―

Enlight Renewable Energy Corporate Events

Enlight Renewable Energy Announces Virtual Shareholder Meeting

Enlight Renewable Energy has announced a virtual shareholder meeting to discuss the approval of a private placement agreement with investor Petri Fort for acquiring shares in the company. This strategic move could potentially influence Enlight’s market positioning and operational strategies by involving new investors, thereby impacting its stakeholders.