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Enlight Renewable Energy (IL:ENLT)
:ENLT
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Enlight Renewable Energy
(ENLT)
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Rating:73Outperform
Price Target:
19,356.00
▲(9.91% Upside)
The score is driven by strong operating profitability and a positive earnings update with raised guidance and major project/capital progress, supported by bullish price trends above key moving averages. Offsetting factors include high leverage and weaker cash-flow signals, plus an expensive valuation (P/E 43.743) and overbought technical readings that elevate near-term pullback risk.
Positive Factors
High Profitability Margins
Sustained high EBIT and net margins indicate a defensible operating model with strong project-level economics and pricing under PPAs. These margins provide cushion for investment in growth, support returns to shareholders, and improve resilience to volume or price variability over the medium term.
Upward Guidance and Revenue Momentum
Management's upgraded full-year guidance reflects growing contracted revenues from projects across the U.S., Israel and Europe, improving visibility. Durable guidance lifts confidence in cash flows from operating assets and supports multi-quarter planning and deployment of capital for new projects.
Strong Capital Raising Capability
Proven access to large-scale financing enables timely project financial closes and rapid portfolio expansion, crucial in capex-heavy renewables. This funding capacity reduces execution risk, accelerates scale-up of storage and generation assets, and underpins multi-year growth plans.
Negative Factors
High Leverage
Substantial leverage increases interest and refinancing exposure, limiting financial flexibility. In a capital-intensive industry, high debt weights project economics toward servicing liabilities, constrains ability to self-fund expansion, and raises vulnerability to rate or covenant shocks.
Weak Free Cash Flow Conversion
Poor cash conversion means reported earnings are not reliably translating into cash available for debt reduction or reinvestment. Persistently weak FCF growth forces reliance on external financing for capex, heightening dilution or refinancing risks and challenging long-term deleveraging.
Interconnection and Regulatory Risks
Regulatory and interconnection bottlenecks can materially delay project commissioning and revenue realization. For grid-dependent renewables, such structural regulatory hurdles increase timeline uncertainty, elevate development costs, and can impair multi-quarter cash flow visibility and project returns.
Enlight Renewable Energy (ENLT) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪23.26B
Dividend YieldN/A
Average Volume (3M)372.96K
Price to Earnings (P/E)48.0
Beta (1Y)1.11
Revenue Growth21.55%
EPS Growth139.11%
CountryIL
Employees360
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)59.20
Shares Outstanding132,067,300
10 Day Avg. Volume460,954
30 Day Avg. Volume372,960
Financial Highlights & Ratios
PEG Ratio-4.46
Price to Book (P/B)7.03
Price to Sales (P/S)20.80
P/FCF Ratio42.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪13,773.94Price Target Upside-21.78% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Enlight Renewable Energy Business Overview & Revenue Model
Company DescriptionEnlight Renewable Energy Ltd operates in the field of renewable energy in the United States, Europe, and Israel. The company develops, designs, constructs, finances, owns, and operates solar and wind energy projects. Its renewable energy total portfolio includes 16,974 megawatts, as well as 12,200-megawatt hours of battery energy storage. Enlight Renewable Energy Ltd was incorporated in 1981 and is based in Rosh Ha'ayin, Israel.
How the Company Makes MoneyEnlight Renewable Energy generates revenue primarily through the sale of electricity produced by its renewable energy projects. The company enters into Power Purchase Agreements (PPAs) with utilities and large energy consumers, ensuring a stable and predictable revenue stream. Additional revenue comes from the sale of Renewable Energy Certificates (RECs), which are generated alongside the production of clean energy. The company may also engage in project development services for third parties, earning fees for its expertise in navigating regulatory and financial landscapes. Key partnerships with government entities and private investors further enhance its funding capabilities, enabling the expansion of its project portfolio and increasing its overall earnings potential.
Enlight Renewable Energy Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant growth in revenue, income, and successful capital raising, overshadowing the challenges posed by regulatory and interconnection risks. The company's strategic advancements in energy storage and financial closures for key projects underscore its positive growth trajectory.Q3-2025 Updates
Positive Updates
Record Revenue and Income Growth
Revenue and income grew by 46% from Q2 2025 to $165 million. Adjusted EBITDA increased by 23% to $112 million, and net income grew by 33% to $32 million.
Raised Full Year Guidance
The company raised its full year 2025 revenue and income guidance to between $555 million and $565 million, and adjusted EBITDA to between $405 million and $415 million, representing increases of 6% and 4.5%, respectively.
Significant Capital Raising
Enlight raised about $4.8 billion over the past 12 months, including $1.5 billion for the Snowflake A project and $300 million through equity offerings, ensuring financial backing for expansion plans.
Energy Storage Expansion
The energy storage segment is a major growth engine, with the global mature storage portfolio reaching 11.8 gigawatt hours, almost six times its size three years ago.
Successful Financial Close for Snowflake A
Achieved a $1.44 billion financial close for the 600 MW Snowflake A project in Arizona, expected to generate approximately $130 million in revenue and over $100 million in EBITDA in its first full year of operation.
Negative Updates
Impact of Previous Compensation
Adjusted EBITDA growth was partially impacted by compensation revenue from the Bjornberget project in Sweden in the corresponding quarter last year that reflected a catch-up for three quarters.
Interconnection and Regulation Challenges
The CO-Bar complex in Arizona faced interconnection risks influenced by federal approval requirements and potential delays from the federal government shutdown.
Tariff and Trade Risks
Ongoing U.S. tariffs and trade regulations pose risks, although mitigation strategies are in place.
Company Guidance
During the Enlight Renewable Energy's Third Quarter 2025 Earnings Call, the company provided updated guidance for the year, reflecting strong financial performance and strategic growth. The company reported a 46% increase in revenue from the previous quarter, reaching $165 million, and a 23% growth in adjusted EBITDA to $112 million. Net income also rose by 33% to $32 million. Enlight raised its full-year 2025 guidance, now expecting revenue between $555 million and $565 million, and adjusted EBITDA between $405 million and $415 million, representing increases of 6% and 4.5% respectively. This upward revision underscores the robust growth trajectory driven by new projects across the United States, Israel, and Europe, and highlights the company's strategic focus on expanding its energy storage capabilities, particularly in Europe. Enlight's strong capital raising efforts, totaling $4.8 billion in the past 12 months, further support its ambitious expansion plans.Enlight Renewable Energy Financial Statement Overview
Summary
Strong profitability (EBIT margin 68.21%, net margin 25.63%) and positive revenue growth (6.46%) are offset by high leverage (debt-to-equity 2.99) and weak cash generation signals, including sharply negative free cash flow growth (-112.20%) and low operating cash flow to net income (0.19).Income Statement
Enlight Renewable Energy shows strong profitability with a high EBIT margin of 68.21% and a net profit margin of 25.63% in the TTM period. The revenue growth rate of 6.46% indicates positive growth momentum. However, the gross profit margin of 63.50% suggests room for improvement in cost management.85
Very Positive
Balance Sheet
The company has a high debt-to-equity ratio of 2.99, indicating significant leverage, which could pose risks if not managed properly. However, the return on equity of 9.14% in the TTM period reflects decent profitability for shareholders. The equity ratio of 21.26% suggests a moderate reliance on equity financing.70
Positive
Cash Flow
The cash flow analysis reveals challenges, with a negative free cash flow growth rate of -112.20% in the TTM period. The operating cash flow to net income ratio of 0.19 indicates limited cash generation relative to net income, while the free cash flow to net income ratio of 1.31 suggests some ability to cover net income with free cash flow.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 478.62M | 398.80M | 261.14M | 192.05M | 330.88M | 241.69M |
| Gross Profit | 323.70M | 209.21M | 144.50M | 111.10M | 61.24M | 136.27M |
| EBITDA | 475.91M | 292.68M | 255.01M | 123.06M | 81.26M | -8.28M |
| Net Income | 123.00M | 44.21M | 70.92M | 24.73M | 11.22M | -150.77M |
Balance Sheet | ||||||
| Total Assets | 25.76B | 5.55B | 4.63B | 3.53B | 8.82B | 5.84B |
| Cash, Cash Equivalents and Short-Term Investments | 2.26B | 387.43M | 409.11M | 231.67M | 980.57M | 423.86M |
| Total Debt | 14.97B | 3.12B | 2.70B | 2.16B | 5.66B | 3.76B |
| Total Liabilities | 19.27B | 4.11B | 3.20B | 2.48B | 6.46B | 4.19B |
| Stockholders Equity | 5.48B | 1.18B | 1.17B | 803.59M | 1.66B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | -30.85M | 193.07M | -582.61M | -548.35M | -1.30B | -1.04B |
| Operating Cash Flow | 197.99M | 193.07M | 149.62M | 90.32M | 168.43M | 136.30M |
| Investing Cash Flow | -1.52B | -941.37M | -798.96M | -819.49M | -2.08B | -1.69B |
| Financing Cash Flow | 1.81B | 745.99M | 855.30M | 684.31M | 2.44B | 1.19B |
Enlight Renewable Energy Technical Analysis
Positive
17610.00
Price Trends
14665.40
Positive
12740.15
Positive
10078.67
Positive
Market Momentum
946.67
Negative
66.00
Neutral
74.20
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 17610 is above the 20-day moving average (MA) of 16748.50, above the 50-day MA of 14665.40, and above the 200-day MA of 10078.67, indicating a bullish trend. The MACD of 946.67 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 74.20 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₪23.26B | 48.03 | 8.71% | ― | 21.55% | 139.11% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
59 Neutral | ₪11.42B | 39.89 | ― | 2.25% | -1.14% | 6.47% | |
54 Neutral | ₪3.87B | -164.78 | ― | ― | -9.53% | -125.66% | |
52 Neutral | ₪7.65B | ― | ― | ― | ― | ― | |
51 Neutral | ₪8.70B | -22.27 | ― | ― | 113.54% | -242.38% | |
41 Neutral | ₪34.88M | -1.43 | ― | ― | -4.02% | 44.85% |
* Utilities Sector Average
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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.