Enlight Renewable Energy (ENLT) AI Stock Analysis

• Market Cap: $9.95B
• Dividend Yield: N/A
• Average Volume (3M): 397.89K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.10
• Revenue Growth: 43.04%
• EPS Growth: 86.08%
• Country: IL
• Employees: 360
• Sector: Utilities
• Sector Strength: 74
• Industry: Renewable Utilities
• EPS (TTM): 287.30
• Shares Outstanding: 119,950,230
• 10 Day Avg. Volume: 511,480
• 30 Day Avg. Volume: 397,890
• PEG Ratio: 0.13
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.38
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 24.14
• Enterprise Value/Ebitda: 6.08
• 1Y Price Target: $7,713.20
• Price Target Upside: -7.01% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: 9,627.00 ▲(16.06%Upside)

Enlight Renewable Energy is on a positive growth trajectory with strong revenue increases and successful project financing. The stock benefits from bullish technical indicators, but high leverage and valuation pose risks. The earnings call highlights strategic successes and mitigated challenges, supporting a favorable outlook.

Positive Factors

Financial Performance

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

Growth Potential

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

Risk Mitigation

There is no expected impact from Trump's executive orders on US solar projects under development, and battery sourcing through Tesla reduces risk for new constructions.

Negative Factors

Execution Risks

ENLT's mostly US projects could see ramp up late in the company's COD ranges, impacting execution.

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 provider in the renewable energy sector, specializing in the development, construction, and operation of solar and wind energy projects. The company focuses on large-scale renewable energy solutions, aiming to contribute to a sustainable energy future by harnessing the power of natural resources to generate clean electricity. Enlight Renewable Energy operates a diversified portfolio of renewable energy assets across various geographical regions, providing sustainable energy solutions to utilities, corporations, and governmental bodies.

How the Company Makes Money

Enlight Renewable Energy makes money through the development, construction, and operation of renewable energy projects, primarily in the solar and wind sectors. The company generates revenue by selling electricity produced from its renewable energy assets under long-term power purchase agreements (PPAs) with utilities, corporations, and other energy consumers. These agreements provide a stable and predictable cash flow by locking in a fixed price for the electricity delivered over the contract period. Additionally, Enlight may receive revenue through government incentives or subsidies aimed at promoting clean energy production, as well as through strategic partnerships or joint ventures that enhance project development and execution. The company's ability to expand its portfolio and optimize the performance of its energy assets plays a crucial role in its financial success.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.16M	398.80M	261.14M	192.05M	330.88M	241.69M
Gross Profit	242.10M	209.21M	144.50M	111.10M	61.24M	136.27M
EBITDA	406.71M	292.68M	255.01M	44.38M	81.26M	-8.28M
Net Income	121.90M	44.21M	70.92M	24.73M	11.22M	-150.77M
Balance Sheet
Total Assets	5.88B	5.55B	4.63B	3.53B	8.82B	5.84B
Cash, Cash Equivalents and Short-Term Investments	449.94M	387.43M	409.11M	231.67M	980.57M	423.86M
Total Debt	3.34B	3.12B	2.70B	2.16B	5.66B	3.76B
Total Liabilities	4.29B	4.11B	3.20B	2.48B	6.46B	4.19B
Stockholders Equity	1.31B	1.18B	1.17B	803.59M	1.66B	1.18B
Cash Flow
Free Cash Flow	401.19M	193.07M	-582.61M	-548.35M	-1.30B	-1.04B
Operating Cash Flow	356.44M	193.07M	149.62M	90.32M	168.43M	136.30M
Investing Cash Flow	-903.28M	-941.37M	-798.96M	-819.49M	-2.08B	-1.69B
Financing Cash Flow	913.89M	745.99M	855.30M	684.31M	2.44B	1.19B

Enlight Renewable Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8295.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 8295 is above the 20-day moving average (MA) of 7644.05, above the 50-day MA of 6942.12, and above the 200-day MA of 6225.38, indicating a bullish trend. The MACD of 459.25 indicates Negative momentum. The RSI at 65.16 is Neutral, neither overbought nor oversold. The STOCH value of 80.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENLT	78 Outperform	$9.95B	22.21	9.93%	―	43.04%	86.08%
Sector *	67 Neutral	$16.50B	17.05	4.45%	3.57%	4.76%	6.13%
ECNR	63 Neutral	1.87B	60.12		―	5.30%	-60.64%
ENRG	61 Neutral	7.41B	24.61		2.96%	32.20%	76.75%
MSKE	51 Neutral	2.58B	71.44		―	―	―
DORL	50 Neutral	2.88B	―		―	―	―
HMGS	45 Neutral	39.80M	―		―	―	―

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.