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

• Market Cap: €90.39B
• Dividend Yield: 4.93%
• Average Volume (3M): 18.57M
• Price to Earnings (P/E): 14.2
• 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: €8.80
• Price Target Upside: -1.23% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €9.50 ▲(6.62% Upside)

Enel S.p.A. scores well due to strong profitability and cash flow metrics, alongside a fair valuation and attractive dividend yield. However, challenges in revenue growth and high leverage are significant risks. Technical indicators suggest the stock is overbought, which could lead to a short-term pullback.

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

Company Description

Enel S.p.A. is a multinational energy company headquartered in Italy, primarily engaged in the generation, distribution, and sale of electricity and gas. As one of the largest utility companies in the world, Enel operates across various sectors, including renewable energy, conventional power generation, and electricity distribution. The company is committed to sustainable development and is a leading player in the transition towards cleaner energy solutions, offering services that encompass power generation, energy management, and innovative technologies for energy efficiency.

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 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	73.90B	70.65B	82.50B	102.67B	68.37B	63.61B
Gross Profit	37.85B	37.88B	33.59B	4.72B	19.08B	21.60B
EBITDA	22.84B	22.02B	19.39B	20.11B	16.40B	14.95B
Net Income	6.30B	7.02B	3.44B	1.68B	3.19B	2.61B
Balance Sheet
Total Assets	179.44B	187.14B	195.22B	219.87B	206.94B	163.45B
Cash, Cash Equivalents and Short-Term Investments	7.19B	10.98B	11.33B	23.19B	28.61B	8.74B
Total Debt	65.99B	71.32B	75.11B	89.59B	72.66B	60.06B
Total Liabilities	130.03B	137.97B	150.12B	177.79B	164.60B	121.10B
Stockholders Equity	34.46B	33.73B	31.75B	28.66B	29.65B	28.32B
Cash Flow
Free Cash Flow	4.93B	4.29B	1.85B	-4.57B	-630.00M	1.96B
Operating Cash Flow	12.92B	13.22B	14.62B	8.67B	9.91B	11.51B
Investing Cash Flow	-8.66B	-4.11B	-10.61B	-13.63B	-12.17B	-10.12B
Financing Cash Flow	-10.35B	-7.99B	-8.36B	7.37B	5.23B	-3.97B

Enel S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.91
• 50DMA: Positive
• 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 Positive. The current price of 8.91 is above the 20-day moving average (MA) of 8.89, above the 50-day MA of 8.55, and above the 200-day MA of 7.76, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.01 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
HER	74 Outperform	€5.79B	11.34	13.77%	3.63%	15.98%	19.01%
A2A	71 Outperform	€8.49B	10.49	15.09%	4.24%	6.67%	-6.79%
ACE	70 Outperform	€4.57B	11.81	14.57%	4.20%	-26.96%	25.00%
ENEL	69 Neutral	€90.39B	14.16	23.22%	4.93%	-3.10%	26.28%
IRE	67 Neutral	€3.26B	10.63	―	4.78%	10.48%	8.87%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%