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

• Market Cap: €78.98B
• Dividend Yield: 5.66%
• Average Volume (3M): 18.09M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.65
• Revenue Growth: -8.26%
• EPS Growth: 24.33%
• Country: IT
• Employees: 60,584
• Sector: Utilities
• Sector Strength: 63
• Industry: Diversified Utilities
• EPS (TTM): 0.17
• Shares Outstanding: 10,166,680,000
• 10 Day Avg. Volume: 16,329,266
• 30 Day Avg. Volume: 18,090,907
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €8.73
• Price Target Upside: 11.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: €9.00 ▲(15.09% Upside)

Enel S.p.A. scores well due to strong technical indicators and a solid valuation with a high dividend yield. However, the score is moderated by financial performance concerns, particularly declining revenue growth and high leverage. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Debt Management

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.

Revenue Decline

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 generates revenue through multiple streams, primarily from the sale of electricity and natural gas to residential, commercial, and industrial customers. Its revenue model is supported by a diversified portfolio that includes traditional energy production, renewable energy sources such as wind and solar, and a growing emphasis on energy services. Enel also earns money through electricity distribution networks, charging fees for the transmission and distribution of power. Significant partnerships with governments, other energy firms, and technology companies enhance its operational capabilities and market reach. Additionally, Enel has been investing heavily in digital transformation and smart grid technologies, which not only improve operational efficiency but also create new revenue opportunities in the energy management and efficiency sectors.

Enel S.p.A. Financial Statement Overview

Summary

Enel S.p.A. demonstrates strong profitability and cash flow metrics, with a healthy EBIT and EBITDA margin. However, challenges include declining revenue growth and high leverage, which could impact future performance.

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	76.26B	75.25B	91.37B	139.91B	92.79B	63.64B
Gross Profit	19.93B	29.72B	33.59B	25.34B	22.69B	25.45B
EBITDA	25.46B	23.17B	18.30B	18.18B	13.70B	14.08B
Net Income	6.30B	6.77B	3.79B	2.61B	3.12B	2.61B
Balance Sheet
Total Assets	179.44B	187.14B	195.22B	219.62B	206.94B	163.45B
Cash, Cash Equivalents and Short-Term Investments	7.90B	8.19B	11.33B	24.79B	11.02B	6.37B
Total Debt	65.63B	70.35B	73.56B	87.91B	70.92B	58.66B
Total Liabilities	130.03B	137.97B	150.12B	177.54B	164.60B	121.10B
Stockholders Equity	34.46B	33.73B	25.20B	28.66B	29.65B	28.32B
Cash Flow
Free Cash Flow	4.93B	4.29B	1.85B	-4.57B	-2.13B	1.96B
Operating Cash Flow	12.92B	13.22B	14.62B	8.67B	10.07B	11.51B
Investing Cash Flow	-8.66B	-4.11B	-10.61B	-13.63B	-10.88B	-10.12B
Financing Cash Flow	-10.35B	-7.99B	-8.36B	7.37B	3.78B	-3.97B

Enel S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.82 is below the 20-day moving average (MA) of 7.93, below the 50-day MA of 7.83, and above the 200-day MA of 7.17, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 6.95 is Positive, 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	69 Neutral	€78.98B	12.53	20.53%	5.66%	-8.26%	24.33%
Sector *	66 Neutral	$17.27B	17.85	5.54%	3.66%	6.63%	11.55%
0N54	―	€6.70B	8.02	16.17%	―	―	―
0MHD	―	€4.23B	10.71	14.47%	―	―	―
0N4J	―	€10.32B	47.20	2.21%	―	―	―
0NVV	―	€5.37B	10.37	13.98%	―	―	―
0MUN	―	€3.24B	10.59	9.99%	―	―	―