ENDESA SA (ENA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ENA - ES0130670112 - Common Stock
30.71 EUR
+0.11 (+0.36%)
We assign a fundamental rating of 6 out of 10 to ENA. ENA was compared to 29 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 correct valuation and a medium 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.
- 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's Return On Equity of 40.07% is amongst the best of the industry. ENA outperforms 96.55% of its industry peers.
- The Return On Invested Capital of ENA (13.96%) is better than 96.55% 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 6.40%.
- 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
- Looking at the Profit Margin, with a value of 10.04%, ENA is in line with its industry, outperforming 41.38% of the companies in the same industry.
- In the last couple of years the Profit Margin of ENA has grown nicely.
- ENA has a Operating Margin (16.60%) which is in line with its industry peers.
- ENA's Operating Margin has improved in the last couple of years.
- ENA has a Gross Margin (47.79%) which is comparable to the rest of the industry.
- 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.
- The number of shares outstanding for ENA remains at a similar level compared to 1 year ago.
- The number of shares outstanding for ENA remains at a similar level compared to 5 years ago.
- The debt/assets ratio for ENA has been reduced compared to a year ago.
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.
- 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.
- ENA has a better Debt to FCF ratio (3.60) than 93.10% of its industry peers.
- 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
- ENA has a Current 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 Current ratio (0.90) which is in line with its industry peers.
- A Quick Ratio of 0.72 indicates that ENA may have some problems paying 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
- 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.
- Measured over the past years, ENA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
- ENA shows a decrease in Revenue. In the last year, the revenue decreased by -2.71%.
- 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
- 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
- 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 14.84, ENA is valued correctly.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, ENA is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 14.90, ENA is valued correctly.
- ENA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ENA is cheaper than 75.86% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, ENA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 14.9 |
4.2 Price Multiples
- 89.66% of the companies in the same industry are more expensive than ENA, based on the Enterprise Value to EBITDA ratio.
- 89.66% of the companies in the same industry are more expensive than ENA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 5.54 |
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)1.09
PEG (5Y)1.61
EPS Next 2Y7.59%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- ENA has a Yearly Dividend Yield of 3.51%.
- Compared to an average industry Dividend Yield of 3.10, ENA pays a bit more dividend than its industry peers.
- 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.