ENEL SPA (ENL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ENL - IT0003128367 - Common Stock
9.02 EUR
-0.02 (-0.17%)
We assign a fundamental rating of 5 out of 10 to ENL. ENL was compared to 26 industry peers in the Electric Utilities industry. ENL has a medium profitability rating, but doesn't score so well on its financial health evaluation. ENL is valued correctly, but it does not seem to be growing. ENL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ENL had positive earnings in the past year.
- In the past year ENL had a positive cash flow from operations.
- ENL had positive earnings in each of the past 5 years.
- Each year in the past 5 years ENL had a positive operating cash flow.
1.2 Ratios
- ENL has a Return On Assets of 5.59%. This is in the better half of the industry: ENL outperforms 69.23% of its industry peers.
- ENL has a Return On Equity of 29.11%. This is amongst the best in the industry. ENL outperforms 88.46% of its industry peers.
- ENL's Return On Invested Capital of 9.13% is fine compared to the rest of the industry. ENL outperforms 76.92% of its industry peers.
- ENL had an Average Return On Invested Capital over the past 3 years of 5.54%. This is in line with the industry average of 6.56%.
- The 3 year average ROIC (5.54%) for ENL is below the current ROIC(9.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 29.11% | ||
| ROIC | 9.13% |
ROA(3y)2.09%
ROA(5y)1.88%
ROE(3y)12.5%
ROE(5y)11.49%
ROIC(3y)5.54%
ROIC(5y)4.95%
1.3 Margins
- ENL's Profit Margin of 8.49% is on the low side compared to the rest of the industry. ENL is outperformed by 69.23% of its industry peers.
- ENL's Profit Margin has improved in the last couple of years.
- ENL has a worse Operating Margin (15.91%) than 65.38% of its industry peers.
- In the last couple of years the Operating Margin of ENL has grown nicely.
- ENL has a Gross Margin of 57.91%. This is comparable to the rest of the industry: ENL outperforms 53.85% of its industry peers.
- ENL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.91% | ||
| PM (TTM) | 8.49% | ||
| GM | 57.91% |
OM growth 3Y33.08%
OM growth 5Y4.17%
PM growth 3Y34.59%
PM growth 5Y27.56%
GM growth 3Y11.91%
GM growth 5Y1.22%
2. Health
2.1 Basic Checks
- ENL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, ENL has about the same amount of shares outstanding.
- Compared to 5 years ago, ENL has about the same amount of shares outstanding.
- Compared to 1 year ago, ENL has an improved debt to assets ratio.
2.2 Solvency
- ENL has an Altman-Z score of 1.47. This is a bad value and indicates that ENL is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.47, ENL is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- ENL has a debt to FCF ratio of 17.81. This is a negative value and a sign of low solvency as ENL would need 17.81 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 17.81, ENL is doing good in the industry, outperforming 65.38% of the companies in the same industry.
- ENL has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.69, ENL is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 17.81 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.37
WACC6.67%
2.3 Liquidity
- A Current Ratio of 0.79 indicates that ENL may have some problems paying its short term obligations.
- ENL's Current ratio of 0.79 is on the low side compared to the rest of the industry. ENL is outperformed by 69.23% of its industry peers.
- ENL has a Quick Ratio of 0.79. This is a bad value and indicates that ENL is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.71, ENL is doing worse than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The earnings per share for ENL have decreased by -3.86% in the last year.
- The Earnings Per Share has been growing by 8.23% on average over the past years. This is quite good.
- The Revenue for ENL has decreased by -20.42% in the past year. This is quite bad
- ENL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.91% yearly.
EPS 1Y (TTM)-3.86%
EPS 3Y8.82%
EPS 5Y8.23%
EPS Q2Q%0%
Revenue 1Y (TTM)-20.42%
Revenue growth 3Y-3.36%
Revenue growth 5Y-0.91%
Sales Q2Q%-11.02%
3.2 Future
- Based on estimates for the next years, ENL will show a small growth in Earnings Per Share. The EPS will grow by 2.13% on average per year.
- Based on estimates for the next years, ENL will show a small growth in Revenue. The Revenue will grow by 2.63% on average per year.
EPS Next Y3.02%
EPS Next 2Y3.39%
EPS Next 3Y3.37%
EPS Next 5Y2.13%
Revenue Next Year-10.94%
Revenue Next 2Y-5.54%
Revenue Next 3Y-2.56%
Revenue Next 5Y2.63%
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
- With a Price/Earnings ratio of 13.46, ENL is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of ENL indicates a rather cheap valuation: ENL is cheaper than 80.77% of the companies listed in the same industry.
- ENL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 12.36, ENL is valued correctly.
- 84.62% of the companies in the same industry are more expensive than ENL, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ENL to the average of the S&P500 Index (24.26), we can say ENL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENL is valued cheaper than 88.46% of the companies in the same industry.
- ENL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ENL is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.83 | ||
| EV/EBITDA | 5.5 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ENL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.46
PEG (5Y)1.64
EPS Next 2Y3.39%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
- ENL has a Yearly Dividend Yield of 5.20%, which is a nice return.
- ENL's Dividend Yield is rather good when compared to the industry average which is at 3.15. ENL pays more dividend than 96.15% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ENL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
5.2 History
- The dividend of ENL has a limited annual growth rate of 5.33%.
Dividend Growth(5Y)5.33%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 52.39% of the earnings are spent on dividend by ENL. This is a bit on the high side, but may be sustainable.
- ENL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.39%
EPS Next 2Y3.39%
EPS Next 3Y3.37%
ENEL SPA / ENL.DE FAQ
What is the fundamental rating for ENL stock?
ChartMill assigns a fundamental rating of 5 / 10 to ENL.DE.
What is the valuation status of ENEL SPA (ENL.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to ENEL SPA (ENL.DE). This can be considered as Fairly Valued.
What is the profitability of ENL stock?
ENEL SPA (ENL.DE) has a profitability rating of 6 / 10.
How financially healthy is ENEL SPA?
The financial health rating of ENEL SPA (ENL.DE) is 3 / 10.
What is the expected EPS growth for ENEL SPA (ENL.DE) stock?
The Earnings per Share (EPS) of ENEL SPA (ENL.DE) is expected to grow by 3.02% in the next year.