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

• Market Cap: €83.71B
• Dividend Yield: 4.55%
• Average Volume (3M): 19.49M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.67
• Revenue Growth: -7.85%
• EPS Growth: 63.65%
• Country: IT
• Employees: 60,584
• Sector: Utilities
• Sector Strength: 71
• Industry: Diversified Utilities
• EPS (TTM): 0.20
• Shares Outstanding: 10,166,680,000
• 10 Day Avg. Volume: 19,461,865
• 30 Day Avg. Volume: 19,489,943
• PEG Ratio: N/A
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.69
• 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: €8.24
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: €9.00 ▲(9.22%Upside)

Enel S.p.A. demonstrates strong financial performance with robust profitability and cash flow management, supporting its operations and shareholder returns. The company benefits from bullish technical indicators, indicating positive market sentiment. Additionally, its attractive valuation with a reasonable P/E ratio and strong dividend yield makes it appealing to investors seeking income and growth potential. The absence of recent corporate events or earnings call highlights necessitates a focus on existing financial and market conditions for a comprehensive evaluation.

Positive Factors

Debt Reduction

Net debt is expected to decrease due to the completion of the announced disposal plan, improving the company's balance sheet.

Dividend Yield

Enel offers an attractive dividend yield of approximately 7%, considered a main driver for the stock price.

Operational Performance

Positive cash flow from operations and asset disposals more than offset capital expenditure for the period and dividends.

Negative Factors

Earnings Decline

Adjusted net income is projected to decline by around 11% compared to last year due to higher depreciation and net financial costs.

EBITDA Decline

EBITDA is expected to decline slightly compared to last year, mainly due to asset disposals in Latin America.

Revenue Decrease

FY24A revenues decreased by c.17% y/y to €78.9bn, mainly attributable to the lower volumes of thermal energy produced, lower electricity and gas sold in end-user markets, combined with lower prices.

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 S.p.A. generates revenue through several key streams, primarily from its electricity and gas operations. The company makes money from the generation and sale of electricity, both from traditional power plants and an increasing number of renewable energy sources such as wind, solar, and hydroelectric power. Enel also earns revenue through the distribution of electricity and gas, charging fees for the infrastructure and maintenance of its extensive grid networks. Retail sales to residential, commercial, and industrial customers form another significant revenue stream. Additionally, Enel invests in energy efficiency and digitalization projects, offering smart energy solutions and services that provide further income. Strategic partnerships and joint ventures in various regions enhance its market presence and contribute to its earnings, while government incentives and policies supporting renewable energy also play a crucial role in its financial performance.

Enel S.p.A. Financial Statement Overview

Summary

Enel S.p.A. demonstrates a solid financial position across key metrics. The company maintains strong profitability and operational efficiency with a consistent revenue base. While the balance sheet shows moderate leverage, typical for the utilities sector, the firm’s cash flow generation remains robust, supporting its capital expenditures and shareholder returns. The overall financial health suggests stability with potential for growth.

Income Statement

Enel S.p.A. shows a solid gross profit margin of 19.15% and a net profit margin of 8.63% for the TTM period, indicating healthy profitability. The revenue growth rate from the previous year is modest at 4.08%, reflecting stability in revenue generation. However, there is room for improvement in revenue growth, given the utility industry's competitive dynamics. The EBIT margin of 18.91% and EBITDA margin of 31.31% for the TTM period demonstrate strong operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 1.87, indicating moderate leverage, which is typical in the utilities sector. Return on equity is robust at 19.10%, showcasing effective utilization of shareholders' equity. The equity ratio is 20.04%, suggesting a balanced capital structure, though reliant on debt financing.

Cash Flow

Enel S.p.A. displays strong cash flow management with a free cash flow growth rate of 1.65%. The operating cash flow to net income ratio is 1.70, highlighting a strong cash-generating ability. The free cash flow to net income ratio of 0.62 indicates a healthy conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.17B	78.95B	92.88B	102.67B	96.55B	64.23B
Gross Profit	15.73B	32.47B	31.69B	24.75B	30.96B	23.27B
EBITDA	25.73B	22.02B	18.30B	18.18B	13.70B	14.08B
Net Income	7.09B	7.02B	3.44B	1.68B	3.19B	3.62B
Balance Sheet
Total Assets	185.19B	187.14B	195.22B	219.62B	206.94B	163.45B
Cash, Cash Equivalents and Short-Term Investments	11.51B	8.05B	11.33B	24.79B	11.02B	6.37B
Total Debt	69.22B	71.08B	73.56B	87.91B	70.92B	58.66B
Total Liabilities	132.44B	137.97B	150.12B	177.54B	164.60B	121.10B
Stockholders Equity	37.11B	33.73B	25.20B	28.66B	29.65B	28.32B
Cash Flow
Free Cash Flow	4.36B	4.29B	1.85B	-4.57B	-2.13B	1.96B
Operating Cash Flow	12.03B	13.22B	14.62B	8.67B	10.07B	11.51B
Investing Cash Flow	-4.75B	-4.11B	-10.61B	-13.63B	-10.88B	-10.12B
Financing Cash Flow	-6.83B	-7.99B	-8.36B	7.37B	3.78B	-3.97B

Enel S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 8.24 is above the 20-day moving average (MA) of 8.03, above the 50-day MA of 7.92, and above the 200-day MA of 7.13, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.51 is Neutral, neither overbought nor oversold. The STOCH value of 78.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	€83.71B	11.80	25.20%	4.55%	-7.85%	63.65%
Sector *	64 Neutral	£6.83B	7.09	15.34%	5.81%	2.03%	-25.14%
0N54		€7.27B	8.81	16.17%	4.38%	―	―
0MHD		€4.37B	12.59	13.68%	4.63%	―	―
0N4J		€9.87B	44.30	2.21%	4.37%	―	―
0NVV		€5.98B	11.73	13.57%	3.67%	―	―
0MUN		€3.37B	11.98	8.81%	4.90%	―	―