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 26 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- ENA had positive earnings in the past year.
- ENA had a positive operating cash flow in the past year.
- In the past 5 years ENA has always been profitable.
- ENA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ENA's Return On Assets of 8.96% is amongst the best of the industry. ENA outperforms 96.15% of its industry peers.
- ENA has a better Return On Equity (40.07%) than 96.15% of its industry peers.
- ENA has a better Return On Invested Capital (13.96%) than 96.15% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ENA is significantly above the industry average of 6.56%.
- The 3 year average ROIC (12.56%) for ENA is below the current ROIC(13.96%), indicating increased profibility in the last year.
| 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
- With a Profit Margin value of 10.04%, ENA perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
- In the last couple of years the Profit Margin of ENA has grown nicely.
- The Operating Margin of ENA (16.60%) is comparable to the rest of the industry.
- ENA's Operating Margin has improved in the last couple of years.
- ENA's Gross Margin of 47.79% is in line compared to the rest of the industry. ENA outperforms 46.15% of its industry peers.
- ENA's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ENA is creating value.
- The number of shares outstanding for ENA remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ENA has about the same amount of shares outstanding.
- The debt/assets ratio for ENA has been reduced compared to a year ago.
2.2 Solvency
- ENA has an Altman-Z score of 2.28. 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.
- The Altman-Z score of ENA (2.28) is better than 73.08% of its industry peers.
- The Debt to FCF ratio of ENA is 3.60, which is a good value as it means it would take ENA, 3.60 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 3.60, ENA belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- ENA has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
- ENA has a Debt to Equity ratio of 1.18. This is in the better half of the industry: ENA outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 2.28 |
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.
- ENA has a Current ratio (0.90) which is comparable to the rest of the 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.
- With a Quick ratio value of 0.72, ENA perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- ENA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.78%, which is quite impressive.
- ENA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
- Looking at the last year, ENA shows a decrease in Revenue. The Revenue has decreased by -2.71% in the last year.
- Measured over the past years, ENA shows a small growth in Revenue. The Revenue has been growing by 1.11% on average per year.
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
- ENA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.35% yearly.
- The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y13.57%
EPS Next 2Y7.47%
EPS Next 3Y5.26%
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
- ENA is valuated correctly with a Price/Earnings ratio of 14.69.
- Based on the Price/Earnings ratio, ENA is valued a bit cheaper than 76.92% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. ENA is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 14.79 indicates a correct valuation of ENA.
- Based on the Price/Forward Earnings ratio, ENA is valued a bit cheaper than 73.08% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ENA to the average of the S&P500 Index (24.26), we can say ENA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENA indicates a rather cheap valuation: ENA is cheaper than 84.62% of the companies listed in the same industry.
- ENA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ENA is cheaper than 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 5.57 |
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 2Y7.47%
EPS Next 3Y5.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.48%, ENA has a reasonable but not impressive dividend return.
- ENA's Dividend Yield is comparable with the industry average which is at 3.03.
- 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 | 3.48% |
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 2Y7.47%
EPS Next 3Y5.26%
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 13.57% in the next year.