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Enlight Renewable Energy (IL:ENLT)
:ENLT
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Enlight Renewable Energy
(NASDAQ:ENLT)
Rating:78Outperform
Price Target:
9,627.00
▲(15.99%Upside)
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 Management
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
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.
Stock Rating
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 Impact
There is uncertainty from the expected tax bill, impacting ENLT's returns on its projects.
Enlight Renewable Energy (ENLT) vs. iShares MSCI Israel ETF (EIS)
Market Cap
$10.34B
Dividend YieldN/A
Average Volume (3M)411.41K
Price to Earnings (P/E)22.4
Beta (1Y)1.08
Revenue Growth43.04%
EPS Growth86.08%
CountryIL
Employees360
SectorUtilities
Sector Strength75
IndustryRenewable Utilities
Share Statistics
EPS (TTM)287.30
Shares Outstanding119,950,230
10 Day Avg. Volume321,387
30 Day Avg. Volume411,413
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)2.26
Price to Sales (P/S)0.00
P/FCF Ratio7.42
Enterprise Value/Market Cap0.57
Enterprise Value/Revenue3.96
Enterprise Value/Gross Profit24.24
Enterprise Value/Ebitda6.11
Forecast
1Y Price Target
$7,614.60Price Target Upside-8.26% Downside
Rating ConsensusHold
Number of Analyst Covering4
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:May 06, 2025
(Q1-2025)
| % Change Since: 41.71%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance and successful project financing and progress, reflecting a positive outlook despite challenges posed by U.S. trade policy changes and operational issues in Europe.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Revenue grew by 39% compared to the same quarter last year, reaching $130 million. Adjusted EBITDA increased by 84% to $132 million. The Sunlight transaction significantly contributed $42 million to adjusted EBITDA and $97 million to pretax profit.
Successful U.S. Project Financing
Enlight raised a total of $1.5 billion in financing at favorable terms for three major projects despite recent U.S. trade policy changes, demonstrating a strong ability to access capital.
Progress in U.S. Projects
Construction on Quail Ranch and Roadrunner is advancing, with expected operations by the end of the year. Together, these projects will add 820 megawatts of generation capacity and 2 gigawatt-hour of storage with expected total revenues of approximately $250 million.
Resilient Supply Chain Strategy
Enlight's diversified supply chain and domestic sourcing strategy mitigated impacts from U.S. trade tariffs. Solar panels are domestically sourced or imported from countries other than China, and Tesla is used as the main battery supplier.
Expansion in Energy Storage Markets
Rising demand for energy storage in Europe and new developments in Israel, including a win in a tender for a combined data center and renewable energy complex, indicate strategic growth in these markets.
Negative Updates
Impact of U.S. Trade Policy Changes
Recent changes to U.S. trade policies created market uncertainty, though impacts have been minimized. Potential tariff impacts range from 0.2% to 1% in project returns.
Operational Challenges in Europe
Lower electricity volumes generated at European wind projects due to weaker wind and a blade failure at the Bjornbeget project resulted in reduced output, although partially offset by compensation.
Company Guidance
During Enlight Renewable Energy's first quarter 2025 earnings call, the company reported a robust financial performance, highlighting a 39% increase in revenue to $130 million and an 84% rise in adjusted EBITDA to $132 million compared to the same quarter last year. Enlight maintained its full-year guidance, projecting revenues between $490 million and $510 million and adjusted EBITDA between $360 million and $380 million. A key driver was the Sunlight transaction, contributing $42 million to adjusted EBITDA and $97 million to pretax profit. The company secured $1.5 billion in financing for U.S. projects, with construction progressing on Quail Ranch, Roadrunner, and Country Acres, which will collectively add 820 megawatts of generation capacity and 2 gigawatt-hours of storage. Additionally, Enlight's diversified supply chain strategy mitigated the impact of recent U.S. trade tariffs, ensuring continued growth across its global projects, including new energy storage ventures in Europe and advancements in Israel's data center and standalone storage sectors.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.80
Positive
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.75
Positive
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.70
Positive
| 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
Neutral
8300.00
Price Trends
7637.26
Positive
6843.80
Positive
6427.06
Positive
Market Momentum
229.88
Positive
51.97
Neutral
21.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ENLT, the sentiment is Neutral. The current price of 8300 is below the 20-day moving average (MA) of 8484.25, above the 50-day MA of 7637.26, and above the 200-day MA of 6427.06, indicating a neutral trend. The MACD of 229.88 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 21.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:ENLT.
Enlight Renewable Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.34B | 22.44 | 9.93% | ― | 43.04% | 86.08% | |
66 Neutral | 7.63B | 25.32 | 291.97% | 32.20% | 76.75% | ||
62 Neutral | £6.09B | 4.74 | 6.40% | 5.46% | -0.13% | -64.11% | |
60 Neutral | 3.09B | 71.44 | ― | ― | ― | ||
55 Neutral | 3.01B | ― | ― | ― | ― | ||
55 Neutral | 36.11M | ― | ― | ― | ― | ||
54 Neutral | 1.99B | 61.61 | ― | 5.30% | -60.64% |
* Utilities Sector Average
Performance Comparison
IL:ENLT
Enlight Renewable Energy
8,300.00
2,507.00
43.28%
IL:ENRG
Energix
1,330.00
80.01
6.40%
IL:MSKE
Meshek Energy
434.90
159.50
57.92%
IL:HMGS
Homebiogas
136.40
6.50
5.00%
IL:DORL
Doral Energy
1,573.00
420.00
36.43%
IL:ECNR
Econergy
3,518.00
2,073.00
143.46%
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.