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Enlight Renewable Energy Ltd (IL:ENLT)
:ENLT
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Enlight Renewable Energy (ENLT) AI Stock Analysis

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IL:ENLT

Enlight Renewable Energy

(NASDAQ:ENLT)

Rating:77Outperform
Price Target:
10,152.00
▲(3.93% 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.

Enlight Renewable Energy (ENLT) vs. iShares MSCI Israel ETF (EIS)

Enlight Renewable Energy Business Overview & Revenue Model

Company DescriptionEnlight 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 MoneyEnlight 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong growth in revenue and EBITDA, an increase in guidance, and significant project developments in the U.S. The decline in net income due to foreign currency effects was noted as a lowlight but was outweighed by the positive developments and market conditions.
Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Revenue and income grew by 53% year-over-year, reaching $135 million. Adjusted EBITDA increased by 57% to $96 million.
Guidance Raise for 2025
The company raised its full year 2025 guidance, with revenues expected to rise to $528 million and adjusted EBITDA to $393 million, representing a 5% to 6% increase.
Expansion of Leadership Team
Adi Leviatan will take on the role of CEO in October, bringing experience from 3M and McKinsey & Co.
U.S. Project Developments
Significant progress in U.S. projects, including Snowflake A with 600 MW of solar power and 1.9 GWh of battery storage, scheduled to COD in 2027.
Successful Financial Closures
Enlight completed financial close for the hybridization of the Gecama project in Spain, securing $310 million in financing.
Positive Market Environment
The renewable energy sector is experiencing strong demand, with declining costs for solar panels and energy storage equipment.
Negative Updates
Decline in Net Income
Net income decreased to $6 million from $9 million in the same quarter last year, a 41% year-over-year decline, mainly due to a foreign currency shareholder loan.
Company Guidance
During the Enlight Second Quarter 2025 Earnings Call, the company reported a revenue increase of 53% year-over-year, reaching $135 million, and an adjusted EBITDA rise of 57% to $96 million. Despite a decrease in net income to $6 million from $9 million due to foreign currency impacts, the company raised its full-year 2025 guidance, with revenues expected to reach $528 million and adjusted EBITDA projected at $393 million, representing a 5% to 6% increase at the midpoint for both metrics. Enlight is targeting an annual revenue run rate of approximately $2 billion by the end of 2028, quadrupling the 2025 revenues. The call highlighted strong market fundamentals, with high demand for renewable energy driven by electrification and AI, coupled with declining costs of solar panels and energy storage equipment. Enlight's diversified project portfolio spans the U.S., Europe, and Israel, with significant expansion planned in energy storage and new growth areas like AgroSolar and data centers.

Enlight Renewable Energy Financial Statement Overview

Summary
Enlight Renewable Energy demonstrates strong revenue growth and profitability, supported by efficient operations. However, high leverage and negative free cash flow growth present potential risks. The company should focus on managing debt levels and improving cash flow generation to ensure long-term financial stability.
Income Statement
85
Very Positive
Enlight Renewable Energy shows strong revenue growth with a 7.51% increase in TTM. The company maintains robust profitability with a high EBIT margin of 69.27% and a net profit margin of 29.15%. These metrics indicate efficient operations and strong market positioning. However, the gross profit margin slightly decreased from previous periods, suggesting potential cost pressures.
Balance Sheet
70
Positive
The company has a high debt-to-equity ratio of 2.55, indicating significant leverage, which could pose financial risks if not managed carefully. However, the return on equity improved to 9.99%, reflecting better utilization of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure.
Cash Flow
60
Neutral
Operating cash flow is strong, but free cash flow growth is negative at -36.99%, indicating challenges in generating cash after capital expenditures. The free cash flow to net income ratio is healthy at 1.13, suggesting that the company is generating sufficient cash relative to its net income. However, the reliance on operating cash flow to cover net income is moderate, indicating potential liquidity concerns.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue449.57M398.80M261.14M192.05M330.88M241.69M
Gross Profit285.48M209.21M144.50M111.10M61.24M136.27M
EBITDA435.69M292.68M255.01M44.38M81.26M-8.28M
Net Income115.22M44.21M70.92M24.73M11.22M-150.77M
Balance Sheet
Total Assets6.82B5.55B4.63B3.53B8.82B5.84B
Cash, Cash Equivalents and Short-Term Investments481.15M387.43M409.11M231.67M980.57M423.86M
Total Debt4.01B3.12B2.70B2.16B5.66B3.76B
Total Liabilities5.18B4.11B3.20B2.48B6.46B4.19B
Stockholders Equity1.34B1.18B1.17B803.59M1.66B1.18B
Cash Flow
Free Cash Flow252.79M193.07M-582.61M-548.35M-1.30B-1.04B
Operating Cash Flow193.15M193.07M149.62M90.32M168.43M136.30M
Investing Cash Flow-1.05B-941.37M-798.96M-819.49M-2.08B-1.69B
Financing Cash Flow1.12B745.99M855.30M684.31M2.44B1.19B

Enlight Renewable Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9768.00
Price Trends
50DMA
8809.66
Positive
100DMA
7769.32
Positive
200DMA
6887.91
Positive
Market Momentum
MACD
319.98
Negative
RSI
64.95
Neutral
STOCH
89.90
Negative
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 9768 is above the 20-day moving average (MA) of 9389.15, above the 50-day MA of 8809.66, and above the 200-day MA of 6887.91, indicating a bullish trend. The MACD of 319.98 indicates Negative momentum. The RSI at 64.95 is Neutral, neither overbought nor oversold. The STOCH value of 89.90 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
12.93B27.749.28%36.33%94.56%
66
Neutral
$17.50B17.935.60%3.63%6.62%11.55%
61
Neutral
7.66B35.41
2.88%12.94%-3.23%
60
Neutral
3.44B71.44
47
Neutral
2.16B61.68
-7.47%-123.28%
45
Neutral
39.56M
45
Neutral
2.97B
113.54%-242.38%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:ENLT
Enlight Renewable Energy
9,768.00
3,691.00
60.74%
IL:ENRG
Energix
1,391.00
115.80
9.08%
IL:HMGS
Homebiogas
141.10
33.20
30.77%
IL:DORL
Doral Energy
1,656.00
199.00
13.66%
IL:MSKE
Meshek Energy
483.80
299.80
162.93%
IL:ECNR
Econergy
3,857.00
1,905.00
97.59%

Enlight Renewable Energy Corporate Events

Enlight Renewable Energy Announces Virtual Shareholder Meeting
Feb 18, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025