Executive Summary
Endesa, S.A. engages in the generation, distribution, and sale of electricity primarily in Spain and Portugal.
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Limited growth with imperfect balance sheet.
Similar Companies
Share Price & News
How has Endesa's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ELE's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-0.8%
ELE
4.2%
ES Electric Utilities
2.7%
ES Market
1 Year Return
-12.0%
ELE
1.9%
ES Electric Utilities
-24.4%
ES Market
Return vs Industry: ELE underperformed the Spanish Electric Utilities industry which returned 1.9% over the past year.
Return vs Market: ELE exceeded the Spanish Market which returned -24.4% over the past year.
Shareholder returns
| ELE | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 4.2% | 2.7% |
| 30 Day | 3.6% | 3.3% | 1.0% |
| 90 Day | -17.7% | -18.4% | -26.9% |
| 1 Year | -7.7%-12.0% | 5.6%1.9% | -22.1%-24.4% |
| 3 Year | 9.0%-7.0% | 38.2%21.5% | -29.2%-35.7% |
| 5 Year | 51.8%17.9% | 33.6%3.7% | -23.4%-35.4% |
Price Volatility Vs. Market
How volatile is Endesa's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Should You Be Tempted To Sell Endesa, S.A. (BME:ELE) Because Of Its P/E Ratio?3 weeks ago | Simply Wall St
We Think Endesa's (BME:ELE) Statutory Profit Might Understate Its Earnings Potential1 month ago | Simply Wall St
An Intrinsic Calculation For Endesa, S.A. (BME:ELE) Suggests It's 49% UndervaluedValuation
Is Endesa undervalued compared to its fair value and its price relative to the market?
32.87x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ELE (€20.24) is trading above our estimate of fair value (€19.61)
Significantly Below Fair Value: ELE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ELE is poor value based on its PE Ratio (32.9x) compared to the Electric Utilities industry average (10.8x).
PE vs Market: ELE is poor value based on its PE Ratio (32.9x) compared to the Spanish market (14.3x).
Price to Earnings Growth Ratio
PEG Ratio: ELE is poor value based on its PEG Ratio (6.7x)
Price to Book Ratio
PB vs Industry: ELE is overvalued based on its PB Ratio (2.5x) compared to the ES Electric Utilities industry average (1.4x).
Next Steps
Future Growth
How is Endesa forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
4.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ELE's forecast earnings growth (4.9% per year) is above the savings rate (1.3%).
Earnings vs Market: ELE's earnings (4.9% per year) are forecast to grow slower than the Spanish market (17.6% per year).
High Growth Earnings: ELE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ELE's revenue (4.3% per year) is forecast to grow slower than the Spanish market (4.9% per year).
High Growth Revenue: ELE's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ELE's Return on Equity is forecast to be high in 3 years time (20.3%)
Next Steps
Past Performance
How has Endesa performed over the past 5 years?
-1.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ELE has a large one-off loss of €1.7B impacting its March 31 2020 financial results.
Growing Profit Margin: ELE's current net profit margins (3.5%) are lower than last year (7.2%).
Past Earnings Growth Analysis
Earnings Trend: ELE's earnings have declined by -1.3% per year over the past 5 years.
Accelerating Growth: ELE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ELE had negative earnings growth (-53.7%) over the past year, making it difficult to compare to the Electric Utilities industry average (13.1%).
Return on Equity
High ROE: ELE's Return on Equity (7.5%) is considered low.
Next Steps
Financial Health
How is Endesa's financial position?
Financial Position Analysis
Short Term Liabilities: ELE's short term assets (€6.8B) do not cover its short term liabilities (€8.3B).
Long Term Liabilities: ELE's short term assets (€6.8B) do not cover its long term liabilities (€15.5B).
Debt to Equity History and Analysis
Debt Level: ELE's debt to equity ratio (78.5%) is considered high.
Reducing Debt: ELE's debt to equity ratio has increased from 59.8% to 78.5% over the past 5 years.
Debt Coverage: ELE's debt is well covered by operating cash flow (45.5%).
Interest Coverage: ELE's interest payments on its debt are well covered by EBIT (20.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Endesa's current dividend yield, its reliability and sustainability?
7.29%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ELE's dividend (7.29%) is higher than the bottom 25% of dividend payers in the Spanish market (2.72%).
High Dividend: ELE's dividend (7.29%) is low compared to the top 25% of dividend payers in the Spanish market (8.06%).
Stability and Growth of Payments
Stable Dividend: ELE's dividend payments have been volatile in the past 10 years.
Growing Dividend: ELE's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (239.5%), ELE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ELE's dividends in 3 years are forecast to be covered by earnings (73.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average board tenure
CEO
José Damián Bogas Gálvez (64yo)
5.58yrs
Tenure
€2,137,000
Compensation
Mr. José Damián Bogas Gálvez has been the Chief Executive Officer and Executive Director at Endesa SA since October 07, 2014. Mr. Bogas Gálvez served as General Manager of Spain and Portugal at Endesa SA s ...
CEO Compensation Analysis
Compensation vs Market: José Damián's total compensation ($USD2.33M) is below average for companies of similar size in the Spanish market ($USD3.58M).
Compensation vs Earnings: José Damián's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.58yrs | €2.14m | 0.00022% €47.1k | |
| Independent Director | 5.08yrs | €188.00k | no data | |
| Lead Independent Director | no data | €225.00k | 0.000030% €6.4k | |
| Independent Director | 10.92yrs | €188.00k | 0.000020% €4.3k | |
| Vice Chairman | 5.92yrs | no data | no data | |
| Director | 3.08yrs | €188.00k | no data | |
| Director | 5.5yrs | no data | no data | |
| Chairman of Endesa Chile | no data | no data | no data | |
| Independent Director | 5.08yrs | €200.00k | no data | |
| Independent Non Executive Chairman of the Board | 1.08yrs | €432.00k | no data |
5.3yrs
Average Tenure
65.5yo
Average Age
Experienced Board: ELE's board of directors are considered experienced (5.3 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Endesa, S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Endesa, S.A.
- Ticker: ELE
- Exchange: BME
- Founded: 1944
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: €21.429b
- Shares outstanding: 1.06b
- Website: https://www.endesa.com
Number of Employees
Location
- Endesa, S.A.
- Calle Ribera del Loira, 60
- Madrid
- Madrid
- 28042
- Spain
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ELEZ.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Feb 1987 |
| ELE | BME (Bolsas y Mercados Espanoles) | Yes | Ordinary Shares | ES | EUR | Feb 1987 |
| 0N9G | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Feb 1987 |
| ENA | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Feb 1987 |
| ELEE | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Feb 1987 |
| ELE-U | ETLX (Eurotlx) | Yes | Ordinary Shares | IT | EUR | Feb 1987 |
| ELE | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Feb 1987 |
| ELE1 N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Feb 1987 |
| ELEZ.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Nov 2011 |
Biography
Endesa, S.A. engages in the generation, distribution, and sale of electricity primarily in Spain and Portugal. The company generates electricity from various energy sources, such as hydroelectric, nuclear, thermal, wind, and solar. As of December 31, 2019, it distributed electricity to approximately 21 million populations covering a total area of approximately 195,500 square kilometers. The company also sells energy, as well as provides energy related commercial services. In addition, it is also involved in the supply of electricity and gas to other European markets, including Germany, France, Belgium, France, and the Netherlands. Its distribution and transmission networks comprise 316,320 kilometers. Further, the company is involved in the electric mobility, demand management, distributed generation, energy storage; exploitation of primary energy resources; provision of energy related industrial services; electricity transmission business; management, operation, and administration of nuclear plants; issuance of debt instruments; consultancy and civil engineering services; and management real estate properties. The company was formerly known as Empresa Nacional de Electricidad, S.A. and changed its name to Endesa, S.A. in June 1997. Endesa, S.A. was founded in 1944 and is based in Madrid, Spain. Endesa, S.A. is a subsidiary of ENEL Iberia, S.L.U.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/25 06:42 |
| End of Day Share Price | 2020/05/22 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.