ENEL SPA (ENEL.MI) Stock Fundamental Analysis
BIT:ENEL - Borsa Italiana Milan - IT0003128367 - Common Stock - Currency: EUR
ENEL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 16 industry peers in the Electric Utilities industry. While ENEL is still in line with the averages on profitability rating, there are concerns on its financial health. ENEL is cheap, but on the other hand it scores bad on growth. ENEL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ENEL was profitable.
ENEL had a positive operating cash flow in the past year.
Each year in the past 5 years ENEL has been profitable.
ENEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENEL's Return On Assets of 4.55% is in line compared to the rest of the industry. ENEL outperforms 60.00% of its industry peers.
With an excellent Return On Equity value of 25.66%, ENEL belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.93%, ENEL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ENEL is significantly below the industry average of 9.28%.
The 3 year average ROIC (4.10%) for ENEL is below the current ROIC(9.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 25.66% | ||
| ROIC | 9.93% |
ROA(3y)1.36%
ROA(5y)1.39%
ROE(3y)9.15%
ROE(5y)8.76%
ROIC(3y)4.1%
ROIC(5y)4.45%
1.3 Margins
ENEL has a Profit Margin (6.94%) which is comparable to the rest of the industry.
ENEL's Profit Margin has declined in the last couple of years.
ENEL has a Operating Margin (18.70%) which is in line with its industry peers.
ENEL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 63.86%, ENEL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ENEL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.7% | ||
| PM (TTM) | 6.94% | ||
| GM | 63.86% |
OM growth 3Y0.38%
OM growth 5Y5.46%
PM growth 3Y-3.36%
PM growth 5Y-10.81%
GM growth 3Y-5.21%
GM growth 5Y-0.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ENEL is still creating some value.
ENEL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ENEL has about the same amount of shares outstanding.
The debt/assets ratio for ENEL has been reduced compared to a year ago.
2.2 Solvency
ENEL has an Altman-Z score of 1.42. This is a bad value and indicates that ENEL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ENEL (1.42) is comparable to the rest of the industry.
The Debt to FCF ratio of ENEL is 25.19, which is on the high side as it means it would take ENEL, 25.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ENEL (25.19) is worse than 60.00% of its industry peers.
ENEL has a Debt/Equity ratio of 1.97. This is a high value indicating a heavy dependency on external financing.
ENEL has a worse Debt to Equity ratio (1.97) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 25.19 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.67
WACC5.93%
2.3 Liquidity
ENEL has a Current Ratio of 0.88. This is a bad value and indicates that ENEL is not financially healthy enough and could expect problems in meeting its short term obligations.
ENEL has a Current ratio of 0.88. This is in the lower half of the industry: ENEL underperforms 66.67% of its industry peers.
ENEL has a Quick Ratio of 0.88. This is a bad value and indicates that ENEL is not financially healthy enough and could expect problems in meeting its short term obligations.
ENEL has a worse Quick ratio (0.80) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.69% over the past year.
Measured over the past 5 years, ENEL shows a small growth in Earnings Per Share. The EPS has been growing by 3.19% on average per year.
Looking at the last year, ENEL shows a very negative growth in Revenue. The Revenue has decreased by -47.54% in the last year.
The Revenue has been growing slightly by 4.92% on average over the past years.
EPS 1Y (TTM)7.69%
EPS 3Y8.72%
EPS 5Y3.19%
EPS Q2Q%5.88%
Revenue 1Y (TTM)-47.54%
Revenue growth 3Y13.43%
Revenue growth 5Y4.92%
Sales Q2Q%-9.31%
3.2 Future
The Earnings Per Share is expected to grow by 5.68% on average over the next years.
ENEL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.38% yearly.
EPS Next Y24.96%
EPS Next 2Y12.14%
EPS Next 3Y8.7%
EPS Next 5Y5.68%
Revenue Next Year-26.39%
Revenue Next 2Y-13.53%
Revenue Next 3Y-8.98%
Revenue Next 5Y-3.38%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.93, the valuation of ENEL can be described as reasonable.
Based on the Price/Earnings ratio, ENEL is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
ENEL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
The Price/Forward Earnings ratio is 10.05, which indicates a very decent valuation of ENEL.
ENEL's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENEL is cheaper than 86.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ENEL to the average of the S&P500 Index (92.74), we can say ENEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENEL indicates a somewhat cheap valuation: ENEL is cheaper than 80.00% of the companies listed in the same industry.
ENEL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.7 | ||
| EV/EBITDA | 3.88 |
4.3 Compensation for Growth
ENEL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ENEL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.4
PEG (5Y)3.11
EPS Next 2Y12.14%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.26%, ENEL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.37, ENEL pays a better dividend. On top of this ENEL pays more dividend than 86.67% of the companies listed in the same industry.
ENEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
5.2 History
On average, the dividend of ENEL grows each year by 8.33%, which is quite nice.
Dividend Growth(5Y)8.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ENEL pays out 61.35% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ENEL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.35%
EPS Next 2Y12.14%
EPS Next 3Y8.7%
ENEL SPA
BIT:ENEL (2/5/2025, 5:35:15 PM)
6.952
+0.04 (+0.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners31.73%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap70.68B
Analysts83.75
Price Target8.08 (16.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
Yearly Dividend0.51
Dividend Growth(5Y)8.33%
DP61.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.48%
Min EPS beat(2)-9.58%
Max EPS beat(2)18.55%
EPS beat(4)1
Avg EPS beat(4)-9.3%
Min EPS beat(4)-35.02%
Max EPS beat(4)18.55%
EPS beat(8)3
Avg EPS beat(8)54.95%
EPS beat(12)4
Avg EPS beat(12)32.33%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-23.29%
Min Revenue beat(2)-27.13%
Max Revenue beat(2)-19.46%
Revenue beat(4)0
Avg Revenue beat(4)-32.43%
Min Revenue beat(4)-70.67%
Max Revenue beat(4)-12.45%
Revenue beat(8)4
Avg Revenue beat(8)88.77%
Revenue beat(12)8
Avg Revenue beat(12)93.28%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.41%
PT rev (3m)1.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-5.83%
Revenue NY rev (3m)-5.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 10.05 | ||
| P/S | 0.56 | ||
| P/FCF | 23.7 | ||
| P/OCF | 4.77 | ||
| P/B | 2.08 | ||
| P/tB | 15.37 | ||
| EV/EBITDA | 3.88 |
EPS(TTM)0.7
EY10.07%
EPS(NY)0.69
Fwd EY9.95%
FCF(TTM)0.29
FCFY4.22%
OCF(TTM)1.46
OCFY20.98%
SpS12.39
BVpS3.35
TBVpS0.45
PEG (NY)0.4
PEG (5Y)3.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 25.66% | ||
| ROCE | 16.71% | ||
| ROIC | 9.93% | ||
| ROICexc | 11% | ||
| ROICexgc | 14.21% | ||
| OM | 18.7% | ||
| PM (TTM) | 6.94% | ||
| GM | 63.86% | ||
| FCFM | 2.37% |
ROA(3y)1.36%
ROA(5y)1.39%
ROE(3y)9.15%
ROE(5y)8.76%
ROIC(3y)4.1%
ROIC(5y)4.45%
ROICexc(3y)4.59%
ROICexc(5y)4.95%
ROICexgc(3y)5.97%
ROICexgc(5y)6.6%
ROCE(3y)7.2%
ROCE(5y)7.73%
ROICexcg growth 3Y7.72%
ROICexcg growth 5Y6.35%
ROICexc growth 3Y9.6%
ROICexc growth 5Y7.99%
OM growth 3Y0.38%
OM growth 5Y5.46%
PM growth 3Y-3.36%
PM growth 5Y-10.81%
GM growth 3Y-5.21%
GM growth 5Y-0.3%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 25.19 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 142.01% | ||
| Cap/Sales | 9.4% | ||
| Interest Coverage | 4.3 | ||
| Cash Conversion | 46.48% | ||
| Profit Quality | 34.12% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.42 |
F-Score6
WACC5.93%
ROIC/WACC1.67
Cap/Depr(3y)147.23%
Cap/Depr(5y)134.12%
Cap/Sales(3y)12.8%
Cap/Sales(5y)13.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.69%
EPS 3Y8.72%
EPS 5Y3.19%
EPS Q2Q%5.88%
EPS Next Y24.96%
EPS Next 2Y12.14%
EPS Next 3Y8.7%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-47.54%
Revenue growth 3Y13.43%
Revenue growth 5Y4.92%
Sales Q2Q%-9.31%
Revenue Next Year-26.39%
Revenue Next 2Y-13.53%
Revenue Next 3Y-8.98%
Revenue Next 5Y-3.38%
EBIT growth 1Y15.84%
EBIT growth 3Y13.86%
EBIT growth 5Y10.66%
EBIT Next Year61.23%
EBIT Next 3Y18.14%
EBIT Next 5Y11.27%
FCF growth 1Y159.87%
FCF growth 3Y-1.87%
FCF growth 5Y-8.04%
OCF growth 1Y84.06%
OCF growth 3Y8.31%
OCF growth 5Y5.71%