ENEL SPA (ENEL.MI) Stock Fundamental Analysis
BIT:ENEL - Euronext Milan - IT0003128367 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to ENEL. ENEL was compared to 15 industry peers in the Electric Utilities industry. ENEL has a medium profitability rating, but doesn't score so well on its financial health evaluation. ENEL is cheap, but on the other hand it scores bad on growth. Finally ENEL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ENEL had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 4.55%, ENEL is in line with its industry, outperforming 56.25% of the companies in the same industry.
ENEL's Return On Equity of 25.66% is amongst the best of the industry. ENEL outperforms 81.25% of its industry peers.
ENEL has a Return On Invested Capital of 9.93%. This is in the better half of the industry: ENEL outperforms 68.75% of its industry peers.
ENEL had an Average Return On Invested Capital over the past 3 years of 4.10%. This is below the industry average of 8.70%.
The last Return On Invested Capital (9.93%) for ENEL is above the 3 year average (4.10%), which is a sign of increasing profitability.
| 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 of 6.94%. This is in the lower half of the industry: ENEL underperforms 62.50% of its industry peers.
ENEL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.70%, ENEL is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ENEL has grown nicely.
Looking at the Gross Margin, with a value of 63.86%, ENEL belongs to the top of the industry, outperforming 81.25% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ENEL is 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.
Compared to 1 year ago, ENEL has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that ENEL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, ENEL is in the better half of the industry, outperforming 68.75% of the companies in the same 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.
ENEL has a Debt to FCF ratio (25.19) which is in line with its industry peers.
A Debt/Equity ratio of 1.97 is on the high side and indicates that ENEL has dependencies on debt financing.
ENEL has a Debt to Equity ratio of 1.97. This is in the lower half of the industry: ENEL underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 25.19 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.63
WACC6.08%
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.
Looking at the Current ratio, with a value of 0.88, ENEL is doing worse than 62.50% of the companies in the same industry.
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 Quick ratio of 0.80. This is in the lower half of the industry: ENEL underperforms 68.75% 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.
ENEL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -47.54%.
Measured over the past years, ENEL shows a small growth in Revenue. The Revenue has been growing by 4.92% on average per year.
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
ENEL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.68% yearly.
The Revenue is expected to decrease by -3.38% on average over the next years.
EPS Next Y24.84%
EPS Next 2Y12.18%
EPS Next 3Y8.82%
EPS Next 5Y5.68%
Revenue Next Year-26.58%
Revenue Next 2Y-13.68%
Revenue Next 3Y-9.02%
Revenue Next 5Y-3.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.70 indicates a reasonable valuation of ENEL.
75.00% of the companies in the same industry are more expensive than ENEL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. ENEL is valued rather cheaply when compared to this.
ENEL is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
87.50% of the companies in the same industry are more expensive than ENEL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ENEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENEL is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENEL indicates a somewhat cheap valuation: ENEL is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 3.84 |
4.3 Compensation for Growth
The 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)0.39
PEG (5Y)3.04
EPS Next 2Y12.18%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
ENEL has a Yearly Dividend Yield of 6.47%, which is a nice return.
ENEL's Dividend Yield is rather good when compared to the industry average which is at 4.71. ENEL pays more dividend than 81.25% of the companies in the same industry.
ENEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
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.
ENEL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.35%
EPS Next 2Y12.18%
EPS Next 3Y8.82%
BIT:ENEL (3/7/2025, 7:00:00 PM)
6.788
+0.14 (+2.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners32.4%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap69.01B
Analysts83.64
Price Target8.11 (19.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
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)0.28%
PT rev (3m)1.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-6.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.81 | ||
| P/S | 0.55 | ||
| P/FCF | 23.14 | ||
| P/OCF | 4.65 | ||
| P/B | 2.03 | ||
| P/tB | 15.01 | ||
| EV/EBITDA | 3.84 |
EPS(TTM)0.7
EY10.31%
EPS(NY)0.69
Fwd EY10.2%
FCF(TTM)0.29
FCFY4.32%
OCF(TTM)1.46
OCFY21.49%
SpS12.39
BVpS3.35
TBVpS0.45
PEG (NY)0.39
PEG (5Y)3.04
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 | 1.41 |
F-Score6
WACC6.08%
ROIC/WACC1.63
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 Y24.84%
EPS Next 2Y12.18%
EPS Next 3Y8.82%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-47.54%
Revenue growth 3Y13.43%
Revenue growth 5Y4.92%
Sales Q2Q%-9.31%
Revenue Next Year-26.58%
Revenue Next 2Y-13.68%
Revenue Next 3Y-9.02%
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%