BME:ENO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

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 is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ENO's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

ENO

2.7%

ES Construction

2.2%

ES Market


1 Year Return

-9.4%

ENO

-15.2%

ES Construction

-9.7%

ES Market

Return vs Industry: ENO exceeded the Spanish Construction industry which returned -16.5% over the past year.

Return vs Market: ENO exceeded the Spanish Market which returned -11.2% over the past year.


Shareholder returns

ENOIndustryMarket
7 Day-0.6%2.7%2.2%
30 Day6.3%15.9%15.6%
90 Day4.7%9.5%13.8%
1 Year-6.5%-9.4%-12.3%-15.2%-7.2%-9.7%
3 Year-24.6%-29.8%13.3%3.1%-6.9%-15.3%
5 Year20.0%6.4%14.3%-1.8%-2.6%-17.4%

Long-Term 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?

6.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ENO (€9.42) is trading above our estimate of fair value (€4.68)

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 (6.4x) compared to the ES Construction industry average (11.7x).

PE vs Market: ENO is good value based on its PE Ratio (6.4x) compared to the Spanish market (21.5x).


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 (1.4x) compared to the ES Construction industry average (1.8x).


Next Steps

Future Growth

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

-10.5%

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 (-10.5% per year).

Earnings vs Market: ENO's earnings are forecast to decline over the next 3 years (-10.5% per year).

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

Revenue vs Market: ENO's revenue (1% per year) is forecast to grow slower than the Spanish market (6.5% per year).

High Growth Revenue: ENO's revenue (1% 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 (10.5%).


Next Steps

Past Performance

How has Elecnor performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENO has a large one-off gain of €192.0M impacting its September 30 2020 financial results.

Growing Profit Margin: ENO's current net profit margins (5.2%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: ENO's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: ENO's earnings growth over the past year (61.1%) exceeds its 5-year average (14% per year).

Earnings vs Industry: ENO earnings growth over the past year (61.1%) exceeded the Construction industry 1.2%.


Return on Equity

High ROE: Whilst ENO's Return on Equity (21.23%) is high, this metric is skewed due to their high level of debt.


Next Steps

  • Explore strong past performing companies in the Capital Goods industry.

Financial Health

How is Elecnor's financial position?


Financial Position Analysis

Short Term Liabilities: ENO's short term assets (€1.4B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: ENO's short term assets (€1.4B) exceed its long term liabilities (€812.4M).


Debt to Equity History and Analysis

Debt Level: ENO's debt to equity ratio (146.7%) is considered high.

Reducing Debt: ENO's debt to equity ratio has reduced from 182.1% to 146.7% over the past 5 years.

Debt Coverage: ENO's debt is well covered by operating cash flow (29%).

Interest Coverage: ENO's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

3.52%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ENO's dividend (3.52%) is higher than the bottom 25% of dividend payers in the Spanish market (2.28%).

High Dividend: ENO's dividend (3.52%) is low compared to the top 25% of dividend payers in the Spanish market (6.8%).


Stability and Growth of Payments

Stable Dividend: ENO's dividends per share have been stable 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 low payout ratio (18.6%), 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 (34.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Rafael Martín De Bustamante Vega (62 yo)

9.83yrs

Tenure

€1,781,000

Compensation

Mr. Rafael Martín De Bustamante Vega has been the Chief Executive Officer of Elecnor SA since 2011 and serves as its Executive Director since May 18, 2011.


CEO Compensation Analysis

Compensation vs Market: Rafael's total compensation ($USD2.12M) is about average for companies of similar size in the Spanish market ($USD1.99M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rafael Martín De Bustamante Vega
CEO & Executive Director9.83yrs€1.78m0.021%
€ 163.9k
Joaquín Gómez de Olea y Mendaro
Secretary & Director11.08yrs€194.00kno data
Cristóbal González de Aguilar Alonso-Urquijo
Deputy Secretary & Director5.67yrs€199.00k0.13%
€ 1.1m
Luis Villa
Deputy Director General Finance & Internal Auditno datano datano data
Ursula Delclaux
Corporate Development Directorno datano datano data
Argimiro Ramón
Head of Facilities & Networks Department4.58yrsno datano data
Eduard Pinyol Escardo
Head of International Development Sub-Divisionno datano datano data
José Castellanos Ybarra
Head of Wind Power Department (Enerfín)no datano datano data
Pablo Díaz-Miguel Sánchez
Head of Energy Departmentno datano datano data
Armando Pérez Medina
Head of Large Network & Grid Departmentno datano datano data
Pedro Mora-Figueroa
General Secretaryno datano datano data

4.6yrs

Average Tenure

62yo

Average Age

Experienced Management: ENO's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rafael Martín De Bustamante Vega
CEO & Executive Director9.83yrs€1.78m0.021%
€ 163.9k
Joaquín Gómez de Olea y Mendaro
Secretary & Director11.08yrs€194.00kno data
Cristóbal González de Aguilar Alonso-Urquijo
Deputy Secretary & Director5.67yrs€199.00k0.13%
€ 1.1m
Emilio Ybarra Aznar
Independent Director5.5yrs€194.00kno data
Gabriel de Oraa y Moyúa
Director31.33yrs€161.50kno data
Miguel Morenés Giles
Director33.33yrs€214.00kno data
Rafael Prado Aranguren
Director27yrs€161.50k0.15%
€ 1.2m
Jaime Real de Asúa y Arteche
Non-Executive Chairman3.83yrs€481.50k0.010%
€ 81.9k
Fernando Azaola Arteche
Director22.42yrs€199.00k0.34%
€ 2.7m
Juan Landecho Sarabia
Director15.5yrs€247.80k0.082%
€ 655.6k
Irene Hernández Álvarez
Independent Director2.42yrs€179.50k0.0071%
€ 56.6k
Ignacio Prado Rey-Baltar
Deputy Chairmanno data€189.00kno data

11.1yrs

Average Tenure

65yo

Average Age

Experienced Board: ENO's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: €797.684m
  • Shares outstanding: 84.68m
  • Website: https://www.elecnor.com

Number of Employees


Location

  • Elecnor, S.A.
  • Paseo de la Castellana, 81
  • planta 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 the infrastructure and concessions businesses in Spain and internationally. The company distributes electricity; operates power transport lines and transformation substations; gene...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 21:59
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.