ENDESA SA (ENA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ENA - ES0130670112 - Common Stock
30.4 EUR
-0.2 (-0.65%)
We assign a fundamental rating of 6 out of 10 to ENA. ENA was compared to 26 industry peers in the Electric Utilities industry. While ENA has a great profitability rating, 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 Return On Assets of 8.96%. This is amongst the best in the industry. ENA outperforms 96.15% of its industry peers.
- The Return On Equity of ENA (40.07%) is better than 96.15% of its industry peers.
- With an excellent Return On Invested Capital value of 13.96%, ENA belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ENA is significantly above the industry average of 6.56%.
- 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.
- In the last couple of years the Profit Margin of ENA has grown nicely.
- ENA's Operating Margin of 16.60% is in line compared to the rest of the industry. ENA outperforms 42.31% of its industry peers.
- ENA's Operating Margin has improved in the last couple of years.
- ENA has a Gross Margin of 47.79%. This is comparable to the rest of the industry: ENA outperforms 46.15% 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
- ENA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ENA remains at a similar level compared to 1 year ago.
- ENA has about the same amout of shares outstanding than it did 5 years ago.
- 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.
- ENA's Altman-Z score of 2.28 is fine compared to the rest of the industry. ENA outperforms 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.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that ENA has dependencies on debt financing.
- ENA's Debt to Equity ratio of 1.18 is fine compared to the rest 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.
- ENA has a Quick ratio (0.72) which is comparable to the rest of the 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.
- 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
- 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.
- ENA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ENA is valuated correctly with a Price/Earnings ratio of 14.69.
- 76.92% of the companies in the same industry are more expensive than ENA, based on the Price/Earnings ratio.
- ENA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.79 indicates a correct valuation of ENA.
- ENA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ENA is cheaper than 73.08% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ENA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENA is valued cheaper than 84.62% of the companies 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
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ENA has an outstanding profitability rating, which 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
- ENA has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
- ENA's Dividend Yield is comparable with the industry average which is at 3.15.
- Compared to an average S&P500 Dividend Yield of 1.81, ENA pays a better dividend.
| 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.