BME:ENO

Stock Analysis Report

Executive Summary

Elecnor, S.A. engages in infrastructure and concessions businesses in Spain and internationally.

Rewards

PE ratio (12.1x) is below the Spanish market (17x)

Earnings have grown 6.7% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -2.1% per year for the next 3 years

Interest payments are not well covered by earnings

Unstable dividend track record



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

ENGIE

ENXTPA:ENGI

Share Price & News

How has Elecnor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

ENO

3.2%

ES Construction

1.1%

ES Market


1 Year Return

-9.0%

ENO

20.3%

ES Construction

7.6%

ES Market

Return vs Industry: ENO underperformed the Spanish Construction industry which returned 22.2% over the past year.

Return vs Market: ENO underperformed the Spanish Market which returned 8.5% over the past year.


Shareholder returns

ENOIndustryMarket
7 Day-2.2%3.2%1.1%
30 Day2.8%4.7%0.3%
90 Day9.2%5.7%3.5%
1 Year-7.0%-9.0%24.0%20.3%11.5%7.6%
3 Year26.3%18.9%52.9%40.9%15.8%4.7%
5 Year50.2%34.6%35.7%9.7%11.0%-7.6%

Price Volatility Vs. Market

How volatile is Elecnor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Elecnor undervalued compared to its fair value and its price relative to the market?

11.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ENO (€11.05) is trading above our estimate of fair value (€8.9)

Significantly Below Fair Value: ENO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ENO is good value based on its PE Ratio (12.1x) compared to the Construction industry average (14.1x).

PE vs Market: ENO is good value based on its PE Ratio (12.1x) compared to the Spanish market (17x).


Price to Earnings Growth Ratio

PEG Ratio: ENO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ENO is good value based on its PB Ratio (1.9x) compared to the ES Construction industry average (2.3x).


Next Steps

Future Growth

How is Elecnor forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENO's earnings are forecast to decline over the next 3 years (-2.1% per year).

Earnings vs Market: ENO's earnings are forecast to decline over the next 3 years (-2.1% per year).

High Growth Earnings: ENO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ENO's revenue (1.3% per year) is forecast to grow slower than the Spanish market (3.4% per year).

High Growth Revenue: ENO's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENO's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Elecnor performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENO has high quality earnings.

Growing Profit Margin: ENO's current net profit margins (3.4%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: ENO's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: ENO's earnings growth over the past year (5.2%) is below its 5-year average (6.7% per year).

Earnings vs Industry: ENO earnings growth over the past year (5.2%) underperformed the Construction industry 11.6%.


Return on Equity

High ROE: ENO's Return on Equity (13.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Elecnor's financial position?


Financial Position Analysis

Short Term Liabilities: ENO's short term assets (€1.5B) do not cover its short term liabilities (€1.5B).

Long Term Liabilities: ENO's short term assets (€1.5B) do not cover its long term liabilities (€1.5B).


Debt to Equity History and Analysis

Debt Level: ENO's debt to equity ratio (202.5%) is considered high.

Reducing Debt: ENO's debt to equity ratio has reduced from 306.8% to 202.5% over the past 5 years.

Debt Coverage: ENO's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: ENO's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: ENO has a high level of physical assets or inventory.

Debt Coverage by Assets: ENO's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Elecnor's current dividend yield, its reliability and sustainability?

2.82%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.2%markettop25%5.4%industryaverage3.7%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: ENO's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Spanish market (2.22%).

High Dividend: ENO's dividend (2.78%) is low compared to the top 25% of dividend payers in the Spanish market (5.51%).


Stability and Growth of Payments

Stable Dividend: ENO's dividend payments have been volatile in the past 10 years.

Growing Dividend: ENO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.7%), ENO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENO's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

What is the CEO of Elecnor's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Rafael Martín De Bustamante Vega 0

9yrs

Tenure

€1,587,000

Compensation

Mr. Rafael Martín De Bustamante Vega has been the Chief Executive Officer of Elecnor SA since 2011 and serves as its Director. 


CEO Compensation Analysis

Compensation vs Market: Rafael's total compensation ($USD0.00) is below average for companies of similar size in the Spanish market ($USD917.13K).

Compensation vs Earnings: Rafael's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: ENO's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

Experienced Board: ENO's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€101,33726 Jun 19
Isabel Dutilh Carvajal
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,500
Max Price€11.95
Buy€889,32821 Jun 19
Igancio Prado Rey-Baltar
EntityIndividual
Shares71,720
Max Price€12.40
Buy€73,14014 May 19
Irene Hernández Álvarez
EntityIndividual
Shares6,000
Max Price€12.19

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Fernando Azaola Arteche

    Director

    • Compensation: €2.38m
  • Joaquín Gómez de Olea y Mendaro

    Secretary & Director

    • Compensation: €231.00k
  • Rafael Martín De Bustamante Vega

    CEO & Director

    • Tenure: 9yrs
    • Compensation: €1.59m
  • Cristóbal González de Aguilar Alonso-Urquijo

    Deputy Secretary & Director

    • Compensation: €231.00k
  • Argimiro Ramón

    Head of Facilities & Networks Department

    • Tenure: 3.8yrs
  • José Ángel Lostao Unzu

    Head of Concessions Department (Celeo)

    • Eduard Pinyol

      Head of International Development Sub-Division

      • José Castellanos Ybarra

        Head of Wind Power Department (Enerfín)

        • Pablo Díaz-Miguel

          Head of Energy Department

          • Armando Pérez Medina

            Head of Large Network & Grid Department


            Board Members

            • Isabel Dutilh Carvajal

              Independent Director

              • Tenure: 4yrs
              • Compensation: €231.00k
            • Emilio Ybarra Aznar

              Independent Director

              • Tenure: 4yrs
              • Compensation: €231.00k
            • Gabriel de Oraa y Moyúa

              Director

              • Compensation: €231.00k
            • Fernando Leon Domecq

              Deputy Chairman

              • Tenure: 3yrs
              • Compensation: €295.00k
            • Jaime Real de Asúa y Arteche

              Non-Executive Chairman

              • Tenure: 3yrs
              • Compensation: €293.00k
            • Fernando Azaola Arteche

              Director

              • Compensation: €2.38m
            • Joaquín Gómez de Olea y Mendaro

              Secretary & Director

              • Compensation: €231.00k
            • Rafael Martín De Bustamante Vega

              CEO & Director

              • Tenure: 9yrs
              • Compensation: €1.59m
            • Juan Enrique Prado Rey-Baltar

              Deputy Chairman

              • Tenure: 3yrs
              • Compensation: €231.00k
            • Cristóbal González de Aguilar Alonso-Urquijo

              Deputy Secretary & Director

              • Compensation: €231.00k

            Company Information

            Elecnor, S.A.'s company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Elecnor, S.A.
            • Ticker: ENO
            • Exchange: BME
            • Founded: 1958
            • Industry: Construction and Engineering
            • Sector: Capital Goods
            • Market Cap: €922.626m
            • Shares outstanding: 84.64m
            • Website: https://www.elecnor.com

            Number of Employees


            Location

            • Elecnor, S.A.
            • Paseo de la Castellana, 81
            • floor 20
            • Madrid
            • Madrid
            • 28046
            • Spain

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            ENOBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 1992
            0K97LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
            EK5BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992
            ENOEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

            Biography

            Elecnor, S.A. engages in infrastructure and concessions businesses in Spain and internationally. The company distributes electricity; operates power transport lines and transformation substations; generates power from wind farms, solar plants, combined cycle plants, and hydroelectric plants; and provides gas related services covering gas pipeline transportation and distribution. It also develops infrastructure and telecommunications systems; carries out electrification, signaling, interlock, communications, and control system turnkey projects for railways, metros, trams, and trolley buses; and offers technical, commercial, and ancillary services in the field of electricity, communications, gas, water, and installations. In addition, the company is involved in civil and industrial works, and construction activities; hydrological planning activities; operating water transportation and distribution networks; providing hydraulic electromechanical facilities, and automation and control systems; the treatment and reuse of waste and sewerage; and water purification activities. Further, it operates as a full-service installation contractor for landmark buildings, cultural and recreational centers, airport and railway terminals, hotels and hospitals, industrial plants, and cogeneration and trigeneration plants; and designs, engineers, and develops solutions and systems in aerospace, information systems, and telecommunications network sectors. Additionally, the company operates as a turnkey developer and operator of wind power farms; invests in and develops solar photovoltaic and solar thermal projects; and constructs and operates wastewater treatment plants. Elecnor, S.A. was founded in 1958 and is based in Madrid, Spain. Elecnor, S.A. is a subsidiary of Cantiles XXI, S.L. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/19 21:11
            End of Day Share Price2020/01/17 00:00
            Earnings2019/09/30
            Annual Earnings2018/12/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.