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

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IT:ENEL

Enel S.p.A.

(LSE:ENEL)

Rating:76Outperform
Price Target:
€9.00
▲(15.09%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
Balance Sheet Improvement
Net debt is expected to decrease due to the completion of the announced disposal plan, improving the company's balance sheet.
Cash Flow
Positive cash flow from operations and asset disposals more than offset capital expenditure for the period and dividends.
Dividend Yield
Enel offers an attractive dividend yield of approximately 7%, considered a main driver for the stock price.
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 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. (ENEL) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionEnel S.p.A. is a multinational energy company headquartered in Rome, Italy. Operating in over 30 countries across five continents, Enel is one of the world’s leading integrated electricity and gas operators. The company is involved in the generation, distribution, and sale of electricity and natural gas, with a strong focus on renewable energy sources such as wind, solar, and hydroelectric power. Enel is committed to driving the energy transition towards sustainable energy solutions and innovation in digitalized energy services.
How the Company Makes MoneyEnel S.p.A. generates revenue through multiple streams primarily centered around its electricity and gas operations. The company earns money through the generation and distribution of electricity, leveraging its diverse portfolio of energy plants including renewable sources like wind, solar, and hydroelectric power, as well as traditional sources like natural gas and coal. Enel also profits from retail sales of electricity and gas to residential, commercial, and industrial customers. Additionally, Enel engages in trading of electricity and gas on the wholesale market, providing another revenue stream. The company invests in technological innovations and digital solutions, enhancing its smart grid and energy efficiency services, which also contribute to its financial performance. Strategic partnerships and joint ventures in various regions further support Enel's revenue growth by expanding its reach and capabilities in the energy sector.

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
72
Positive
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
68
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue82.17B78.95B92.88B102.67B96.55B64.23B
Gross Profit15.73B32.47B31.69B24.75B30.96B23.27B
EBITDA25.73B22.02B18.30B18.18B13.70B14.08B
Net Income7.09B7.02B3.44B1.68B3.19B3.62B
Balance Sheet
Total Assets185.19B187.14B195.22B219.62B206.94B163.45B
Cash, Cash Equivalents and Short-Term Investments11.51B8.05B11.33B24.79B11.02B6.37B
Total Debt69.22B71.08B73.56B87.91B70.92B58.66B
Total Liabilities132.44B137.97B150.12B177.54B164.60B121.10B
Stockholders Equity37.11B33.73B25.20B28.66B29.65B28.32B
Cash Flow
Free Cash Flow4.36B4.29B1.85B-4.57B-2.13B1.96B
Operating Cash Flow12.03B13.22B14.62B8.67B10.07B11.51B
Investing Cash Flow-4.75B-4.11B-10.61B-13.63B-10.88B-10.12B
Financing Cash Flow-6.83B-7.99B-8.36B7.37B3.78B-3.97B

Enel S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.82
Price Trends
50DMA
7.76
Negative
100DMA
7.40
Positive
200DMA
6.97
Positive
Market Momentum
MACD
-0.02
Positive
RSI
47.86
Neutral
STOCH
-25.31
Positive
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 7.82 is above the 20-day moving average (MA) of 7.78, above the 50-day MA of 7.76, and above the 200-day MA of 6.97, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of -25.31 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€80.44B11.3425.20%5.66%-7.85%63.65%
71
Outperform
€13.05B45.5411.98%4.57%1.73%7.18%
70
Outperform
€4.20B12.1113.68%4.86%-2.19%14.21%
70
Neutral
€3.28B11.648.81%4.95%9.09%16.49%
69
Neutral
€5.81B11.3713.57%3.77%10.92%29.39%
68
Neutral
€6.81B8.2316.17%4.52%2.73%6.02%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:ENEL
Enel S.p.A.
7.82
1.59
25.61%
IT:HER
HERA S.p.A.
3.97
0.65
19.55%
IT:ACE
ACEA SPA
19.54
4.22
27.57%
IT:A2A
A2A SpA
2.21
0.33
17.29%
IT:IRE
Iren S.p.A.
2.59
0.76
41.61%
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.Date of analysis: May 17, 2025