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

• Market Cap: €78.17B
• Dividend Yield: 5.58%
• Average Volume (3M): 34.02M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.69
• Revenue Growth: -17.34%
• EPS Growth: 104.14%
• Country: IT
• Employees: 60,359
• Sector: Utilities
• Sector Strength: 91
• Industry: Diversified Utilities
• EPS (TTM): 0.19
• Shares Outstanding: 10,166,680,000
• 10 Day Avg. Volume: 21,367,664
• 30 Day Avg. Volume: 34,020,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €7.95
• Price Target Upside: 2.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Enel S.p.A. receives a moderate to strong stock score due to its solid financial performance and attractive valuation. While the technical analysis indicates a neutral outlook, the company's robust dividend yield and efficient cash flow management provide substantial strength. High debt levels and revenue fluctuations present challenges but are balanced by strategic management.

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.

Growth Prospects

Enel plans to allocate €43bn in investments, focusing on Grids and Renewables, enhancing its future growth prospects.

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.

Earnings Volatility

Potentially higher earnings volatility with lower regulated earnings (~35% in 2023 from 45% on average in 2020-2022) following divestment of some grid assets and higher investment in renewables capacity.

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 S.p.A. (ENEL) is a multinational energy company headquartered in Rome, Italy. It operates in the generation, distribution, and sale of electricity and gas across Europe, Latin America, North America, Africa, and Asia. Enel is one of the world's leading integrated electricity and gas operators, focusing on renewable energy sources, smart grids, and digitalization to enhance energy efficiency and sustainability. The company provides a wide range of energy solutions, including electricity generation from renewable sources, traditional power generation, and the distribution and retail of electricity and gas.

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 well-balanced financial profile with strong profitability and effective cash flow management. Despite revenue fluctuations and high debt levels, the company maintains efficient operations and strategic financial management.

Income Statement

Enel S.p.A. showcases healthy profitability metrics with a solid gross profit margin of around 41% for 2024. However, the net profit margin has seen volatility, influenced by fluctuating revenues and net income levels over the years. The EBIT and EBITDA margins are strong, reflecting efficient operations. Despite a recent revenue decline, the company maintains overall profitability, indicative of strategic cost management.

Balance Sheet

Enel maintains a moderate debt-to-equity ratio, which suggests a balanced use of leverage. The equity ratio indicates a stable financial structure, though total liabilities remain high. Return on equity has shown improvement, driven by rising net income, which enhances shareholder value. Overall, the balance sheet reflects stability but also highlights a reliance on debt financing.

Cash Flow

The cash flow statement reveals robust operating cash flow generation, which supports the company's capital expenditures and debt obligations. The free cash flow has improved significantly, suggesting effective cash management strategies. The operating cash flow to net income ratio is healthy, indicating strong cash conversion capabilities, despite variability in net income.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
92.88B	142.42B	96.55B	64.23B	73.82B
	Gross Profit
31.69B	28.71B	30.96B	23.27B	23.84B
	EBIT
10.83B	11.19B	17.09B	11.76B	15.53B
	EBITDA
18.30B	18.18B	13.70B	14.08B	13.88B
	Net Income Common Stockholders
3.44B	5.22B	3.19B	3.62B	3.48B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.33B	24.79B	11.02B	6.37B	9.60B
	Total Assets
195.22B	219.62B	206.94B	163.45B	171.43B
	Total Debt
73.56B	87.91B	70.92B	58.66B	60.75B
	Net Debt
66.76B	76.86B	62.06B	52.76B	51.72B
	Total Liabilities
150.12B	177.54B	164.60B	121.10B	124.49B
	Stockholders Equity
25.20B	28.66B	29.65B	28.32B	30.38B
Cash Flow		Free Cash Flow
1.85B	-4.57B	-2.13B	1.96B	1.99B
	Operating Cash Flow
14.62B	8.67B	10.07B	11.51B	11.25B
	Investing Cash Flow
-10.61B	-13.63B	-10.88B	-10.12B	-9.12B
	Financing Cash Flow
-8.36B	7.37B	3.78B	-3.97B	306.00M

Enel S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.74
• 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 IT:ENEL, the sentiment is Positive. The current price of 7.74 is above the 20-day moving average (MA) of 7.36, above the 50-day MA of 7.23, and above the 200-day MA of 6.83, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 66.30 is Neutral, neither overbought nor oversold. The STOCH value of 92.90 is Negative, 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
TRN	78 Outperform	€17.55B	16.54	16.33%	3.94%	17.85%	19.80%
IG	77 Outperform	€5.82B	12.21	20.21%	4.89%	-3.34%	8.87%
A2A	77 Outperform	€7.05B	8.10	17.84%	4.26%	-13.26%	31.15%
SRG	75 Outperform	€16.93B	13.48	16.18%	5.65%	-16.40%	10.90%
ENEL	73 Outperform	€78.17B	11.58	27.10%	5.58%	-17.34%	104.14%
ENI	67 Neutral	€38.70B	15.07	4.83%	7.72%	-1.16%	-23.76%
Sector *	63 Neutral	$8.52B	11.01	5.35%	4.37%	3.39%	-11.87%