ENDESA SA (ENA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ENA - ES0130670112 - Common Stock
30.4 EUR
-0.2 (-0.65%)
ENA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 29 industry peers in the Electric Utilities industry. ENA scores excellent on profitability, but there are some minor concerns on its financial health. ENA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ENA was profitable.
- In the past year ENA had a positive cash flow from operations.
- ENA had positive earnings in each of the past 5 years.
- In the past 5 years ENA always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.96%, ENA belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
- With an excellent Return On Equity value of 40.07%, ENA belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
- 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
- The Profit Margin of ENA (10.04%) is comparable to the rest of the industry.
- ENA's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 16.60%, ENA perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
- In the last couple of years the Operating Margin of ENA has grown nicely.
- Looking at the Gross Margin, with a value of 47.79%, ENA is in line with its industry, outperforming 44.83% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- ENA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.27 indicates that ENA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ENA has a better Altman-Z score (2.27) than 79.31% of its industry peers.
- 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.
- ENA's Debt to FCF ratio of 3.60 is amongst the best of the industry. ENA outperforms 93.10% of its industry peers.
- ENA has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external 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.
- ENA has a Current ratio of 0.90. This is comparable to the rest of the industry: ENA outperforms 48.28% of its industry peers.
- A Quick Ratio of 0.72 indicates that ENA may have some problems paying its short term obligations.
- ENA's Quick ratio of 0.72 is in line compared to the rest of the industry. ENA outperforms 44.83% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
- Looking at the last year, ENA shows a decrease in Revenue. The Revenue has decreased by -2.71% in the last year.
- ENA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.11% yearly.
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 Y13.59%
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 14.69, ENA is valued correctly.
- Based on the Price/Earnings ratio, ENA is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
- 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.
- ENA is valuated correctly with a Price/Forward Earnings ratio of 14.75.
- Based on the Price/Forward Earnings ratio, ENA is valued a bit cheaper than 75.86% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ENA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENA is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
- ENA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ENA is 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%. Purely for dividend investing, there may be better candidates out there.
- 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
- ENA pays out 31.91% of its income as dividend. This is a 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.