ENDESA SA (ENA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ENA - ES0130670112 - Common Stock
30.4 EUR
-0.2 (-0.65%)
Taking everything into account, ENA scores 6 out of 10 in our fundamental rating. ENA was compared to 29 industry peers in the Electric Utilities industry. ENA scores excellent on profitability, but there are some minor concerns on its financial health. ENA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ENA had positive earnings in the past year.
- In the past year ENA had a positive cash flow from operations.
- Each year in the past 5 years ENA has been profitable.
- ENA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ENA has a better Return On Assets (8.96%) than 96.55% of its industry peers.
- ENA has a better Return On Equity (40.07%) than 96.55% of its industry peers.
- ENA has a better Return On Invested Capital (13.96%) than 96.55% of its industry peers.
- ENA had an Average Return On Invested Capital over the past 3 years of 12.56%. This is significantly above the industry average of 6.40%.
- The last Return On Invested Capital (13.96%) for ENA is above the 3 year average (12.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.96% | ||
| ROE | 40.07% | ||
| ROIC | 13.96% |
ROA(3y)3.98%
ROA(5y)3.98%
ROE(3y)26.52%
ROE(5y)25.06%
ROIC(3y)12.56%
ROIC(5y)10.13%
1.3 Margins
- ENA has a Profit Margin (10.04%) which is comparable to the rest of the industry.
- ENA's Profit Margin has improved in the last couple of years.
- ENA has a Operating Margin (16.60%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of ENA has grown nicely.
- ENA has a Gross Margin of 47.79%. This is comparable to the rest of the industry: ENA outperforms 44.83% of its industry peers.
- In the last couple of years the Gross Margin of ENA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.6% | ||
| PM (TTM) | 10.04% | ||
| GM | 47.79% |
OM growth 3Y24.63%
OM growth 5Y12.08%
PM growth 3Y8.87%
PM growth 5Y59.88%
GM growth 3Y12.48%
GM growth 5Y4.88%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ENA is creating value.
- Compared to 1 year ago, ENA has about the same amount of shares outstanding.
- ENA has about the same amout of shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ENA has an improved debt to assets ratio.
2.2 Solvency
- ENA has an Altman-Z score of 2.27. This is not the best score and indicates that ENA is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.27, ENA is doing good in the industry, outperforming 79.31% of the companies in the same industry.
- ENA has a debt to FCF ratio of 3.60. This is a good value and a sign of high solvency as ENA would need 3.60 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.60, ENA belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that ENA has dependencies on debt financing.
- With a decent Debt to Equity ratio value of 1.18, ENA is doing good in the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 2.27 |
ROIC/WACC2.1
WACC6.64%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that ENA may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.90, ENA is in line with its industry, outperforming 48.28% of the companies in the same industry.
- ENA has a Quick Ratio of 0.90. This is a bad value and indicates that ENA is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.72, ENA is in line with its industry, outperforming 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 100.78% over the past year.
- ENA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
- ENA shows a decrease in Revenue. In the last year, the revenue decreased by -2.71%.
- The Revenue has been growing slightly by 1.11% on average over the past years.
EPS 1Y (TTM)100.78%
EPS 3Y9.39%
EPS 5Y9.19%
EPS Q2Q%12.28%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.65%
Revenue growth 5Y1.11%
Sales Q2Q%-5.25%
3.2 Future
- Based on estimates for the next years, ENA will show a small growth in Earnings Per Share. The EPS will grow by 2.35% on average per year.
- The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y13.59%
EPS Next 2Y7.59%
EPS Next 3Y5.22%
EPS Next 5Y2.35%
Revenue Next Year-4.47%
Revenue Next 2Y-3.02%
Revenue Next 3Y-2.38%
Revenue Next 5Y3.82%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.69 indicates a correct valuation of ENA.
- Compared to the rest of the industry, the Price/Earnings ratio of ENA indicates a somewhat cheap valuation: ENA is cheaper than 75.86% of the companies listed in the same industry.
- ENA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 14.75, ENA is valued correctly.
- 75.86% of the companies in the same industry are more expensive than ENA, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ENA to the average of the S&P500 Index (25.98), we can say ENA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.75 |
4.2 Price Multiples
- 82.76% of the companies in the same industry are more expensive than ENA, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ENA is valued cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
- ENA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of ENA may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)1.6
EPS Next 2Y7.59%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- ENA has a Yearly Dividend Yield of 3.51%.
- ENA's Dividend Yield is a higher than the industry average which is at 3.10.
- ENA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
- The dividend of ENA decreases each year by -6.87%.
Dividend Growth(5Y)-6.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 31.91% of the earnings are spent on dividend by ENA. This is a low number and sustainable payout ratio.
DP31.91%
EPS Next 2Y7.59%
EPS Next 3Y5.22%
ENDESA SA / ENA.DE FAQ
Can you provide the ChartMill fundamental rating for ENDESA SA?
ChartMill assigns a fundamental rating of 6 / 10 to ENA.DE.
What is the valuation status of ENDESA SA (ENA.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to ENDESA SA (ENA.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ENDESA SA?
ENDESA SA (ENA.DE) has a profitability rating of 8 / 10.
Can you provide the financial health for ENA stock?
The financial health rating of ENDESA SA (ENA.DE) is 5 / 10.
Can you provide the expected EPS growth for ENA stock?
The Earnings per Share (EPS) of ENDESA SA (ENA.DE) is expected to grow by 13.59% in the next year.