Enel S.p.A. (ENEL) AI Stock Analysis

• Market Cap: €87.56B
• Dividend Yield: 5.07%
• Average Volume (3M): 18.57M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.56
• Revenue Growth: -3.10%
• EPS Growth: 26.28%
• Country: IT
• Employees: 60,584
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.18
• Shares Outstanding: 10,166,680,000
• 10 Day Avg. Volume: 18,957,494
• 30 Day Avg. Volume: 18,567,472
• PEG Ratio: 0.13
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 16.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €9.02
• Price Target Upside: 3.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €9.50 ▲(8.70% Upside)

Enel S.p.A. shows strong financial performance with solid profitability and operational efficiency, despite challenges in revenue growth and high leverage. The stock's valuation is attractive with a reasonable P/E ratio and a high dividend yield. Technical indicators suggest a neutral to slightly positive trend, but without significant upward momentum. Continued focus on managing debt and enhancing revenue growth will be crucial for future stability and growth.

Positive Factors

Renewable Energy Expansion

Enel's focus on renewable energy aligns with global sustainability trends, positioning it for long-term growth in a transitioning energy market.

Cash Generation Ability

Strong cash flow growth enhances Enel's ability to invest in new projects and technologies, supporting sustainable business expansion.

Operational Efficiency

High operational efficiency through strong margins allows Enel to maintain profitability even amidst market challenges, ensuring long-term stability.

Negative Factors

High Leverage

High leverage could pose financial risks, limiting Enel's flexibility to navigate economic downturns or invest in growth opportunities.

Negative Revenue Growth

Negative revenue growth can hinder Enel's ability to scale operations and invest in future projects, impacting long-term competitiveness.

Gross Profit Margin Decline

A decline in gross profit margin may indicate rising costs or pricing pressures, affecting Enel's profitability and competitive edge.

Enel S.p.A. Business Overview & Revenue Model

Company Description

Enel SpA operates as an integrated electricity and gas operator worldwide. The company generates, transmits, distributes, purchases, transports, and sells electricity; transports and markets natural gas; supplies LNG; designs, develops, constructs, operates, manages, and maintains generation plants and distribution grids; and designs, constructs, and operates merchant lines. It is also involved in various activities, such as energy and infrastructure engineering; research and development in sciences and engineering; the cogeneration of electricity and heat; the construction and management of manages port infrastructure; product, plant, and equipment certification; mining; finance; energy products marketing; trading; and fuel trading and logistics operations. In addition, the company engages in construction and management of LNG regasification infrastructure; desalinization and water supply; electricity system monitoring; and optical fiber network operation activities. Further, it provides testing, inspection, and certification; engineering and consulting; legal; metering, remote control, and connectivity through power line communication; business consulting, administrative, management consulting, and corporate planning; civil, mechanical, and electrical engineering; personnel administration, information technology, real estate, and business; electronic plant installation, maintenance, and repairing; and security services. Additionally, the company offers water systems; public lighting systems and services; electric mobility; and environmental studies services. It operates renewable, wind, thermal, hydroelectric, nuclear, photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.

How the Company Makes Money

Enel generates revenue through several key streams, primarily from the sale of electricity and natural gas to residential, commercial, and industrial customers. The company operates in both regulated and liberalized markets, allowing it to benefit from stable income in regulated sectors while capitalizing on competitive pricing in open markets. Additionally, Enel earns revenue from its extensive renewable energy projects, which not only contribute to its earnings but also align with global sustainability trends. Significant partnerships with governments and private entities enhance its project financing and operational capabilities. The company's investments in smart grid technologies and digital solutions also open up new revenue opportunities through enhanced service offerings and efficiency improvements.

Enel S.p.A. Financial Statement Overview

Summary

Enel S.p.A. demonstrates strong profitability and cash flow metrics, with a solid EBIT and EBITDA margin. However, challenges in revenue growth and high leverage pose risks to future performance. The balance between maintaining profitability and managing debt levels is crucial for sustaining long-term growth.

Income Statement

Enel S.p.A. has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 2.09%, reflecting challenges in maintaining top-line growth. However, the company maintains a strong EBIT margin of 23.33% and an EBITDA margin of 33.39%, indicating efficient operational management. The net profit margin stands at 8.26%, which is healthy but has slightly decreased from the previous year. Overall, while profitability metrics are strong, the declining revenue trend is a concern.

Balance Sheet

The balance sheet of Enel S.p.A. reveals a high debt-to-equity ratio of 1.90, indicating significant leverage, which could pose risks if not managed carefully. The return on equity (ROE) is 17.96%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the company's equity position appears stable. The high leverage is a potential risk, but the company has managed to maintain a reasonable ROE.

Cash Flow

Enel S.p.A.'s cash flow statement shows a positive trajectory with a 12.95% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.29, suggesting that the company is generating sufficient cash from operations relative to its net income. The free cash flow to net income ratio is 0.38, which is a positive sign of cash flow health. Overall, the cash flow position is strong, with good growth and coverage ratios.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.13B	70.65B	82.50B	102.67B	68.37B	63.61B
Gross Profit	35.62B	37.88B	33.59B	4.72B	19.08B	21.60B
EBITDA	24.12B	22.02B	19.39B	20.11B	16.40B	14.95B
Net Income	6.38B	7.02B	3.44B	1.68B	3.19B	2.61B
Balance Sheet
Total Assets	181.34B	187.14B	195.22B	219.87B	206.94B	163.45B
Cash, Cash Equivalents and Short-Term Investments	9.07B	10.98B	11.33B	23.19B	28.61B	8.74B
Total Debt	69.14B	71.32B	75.11B	89.59B	72.66B	60.06B
Total Liabilities	131.55B	137.97B	150.12B	177.79B	164.60B	121.10B
Stockholders Equity	35.29B	33.73B	31.75B	28.66B	29.65B	28.32B
Cash Flow
Free Cash Flow	5.94B	4.29B	1.85B	-4.57B	-630.00M	1.96B
Operating Cash Flow	13.92B	13.22B	14.62B	8.67B	9.91B	11.51B
Investing Cash Flow	-8.63B	-4.11B	-10.61B	-13.63B	-12.17B	-10.12B
Financing Cash Flow	-8.37B	-7.99B	-8.36B	7.37B	5.23B	-3.97B

Enel S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.74
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:ENEL, the sentiment is Neutral. The current price of 8.74 is below the 20-day moving average (MA) of 8.79, below the 50-day MA of 8.75, and above the 200-day MA of 7.91, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 22.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:ENEL.

Enel S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENEL	67 Neutral	€87.56B	13.72	23.22%	5.07%	-3.10%	26.28%
A2A	66 Neutral	€7.06B	9.65	13.23%	4.41%	8.61%	-22.69%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ACE	64 Neutral	€4.60B	9.97	14.57%	4.35%	-26.96%	25.00%
HER	62 Neutral	€5.81B	11.39	13.77%	3.78%	15.98%	19.01%
IRE	61 Neutral	€3.21B	10.89	9.51%	5.07%	10.48%	9.06%