ENDESA SA (ENA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ENA - ES0130670112 - Common Stock
31.03 EUR
+0.32 (+1.04%)
ENA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 29 industry peers in the Electric Utilities industry. ENA scores excellent on profitability, but there are some minor concerns on its financial health. ENA is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years ENA has always 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 has a better Return On Equity (40.07%) than 96.55% of its industry peers.
- ENA has a better Return On Invested Capital (13.96%) 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
- 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.
- Looking at the Operating Margin, with a value of 16.60%, ENA is in line with its industry, outperforming 44.83% of the companies in the same industry.
- In the last couple of years the Operating Margin of ENA has grown nicely.
- ENA has a Gross Margin (47.79%) which is in line with 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ENA is creating value.
- ENA has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ENA has about the same amount of shares outstanding.
- The debt/assets ratio for ENA has been reduced compared to a year ago.
2.2 Solvency
- ENA has an Altman-Z score of 2.29. 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 has a Altman-Z score of 2.29. This is in the better half of the industry: ENA outperforms 79.31% 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.
- ENA has a Debt to FCF ratio of 3.60. This is amongst the best in the industry. ENA outperforms 93.10% of its industry peers.
- ENA has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
- ENA has a Debt to Equity ratio of 1.18. This is in the better half of the industry: ENA outperforms 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 2.29 |
ROIC/WACC2.1
WACC6.66%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that ENA may have some problems paying its short term obligations.
- With a Current ratio value of 0.90, ENA perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
- A Quick Ratio of 0.72 indicates that ENA may have some problems paying 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.
- 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.
- The Revenue has decreased by -2.71% in the past 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.
- 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
- ENA is valuated correctly with a Price/Earnings ratio of 14.99.
- 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.
- The average S&P500 Price/Earnings ratio is at 28.60. ENA is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 15.06 indicates a correct valuation of ENA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ENA indicates a somewhat cheap valuation: ENA is cheaper than 75.86% of the companies listed in the same industry.
- ENA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENA is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ENA is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.32 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of ENA may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)1.63
EPS Next 2Y7.59%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- ENA has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
- 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
- ENA pays out 31.91% of its income as dividend. This is a 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.