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ELE

Endesa BME:ELE Stock Report

Last Price

€20.85

Market Cap

€22.1b

7D

3.2%

1Y

-11.4%

Updated

25 May, 2022

Data

Company Financials +
ELE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health1/6
Dividends3/6

ELE Stock Overview

Endesa, S.A. engages in the generation, distribution, and sale of electricity primarily in Spain and Portugal.

Rewards

Trading at 12.7% below our estimate of its fair value

Earnings are forecast to grow 5.66% per year

Earnings grew by 23.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 6.89% is not well covered by earnings or forecast to be in the next 3 years

Large one-off items impacting financial results


Endesa Competitors

Iberdrola

BME:IBE

€72.5b

Enbridge

TSX:ENB

CA$117.1b

Enel

BIT:ENEL

€62.3b

Ørsted

CPSE:ORSTED

kr.330.7b

Price History & Performance

Summary of all time highs, changes and price drops for Endesa
Historical stock prices
Current Share Price€20.85
52 Week High€23.77
52 Week Low€17.06
Beta0.49
1 Month Change4.15%
3 Month Change14.28%
1 Year Change-11.35%
3 Year Change-7.17%
5 Year Change-6.14%
Change since IPO375.24%

Recent News & Updates

May 12
Endesa's (BME:ELE) Dividend Will Be Reduced To €0.76

Endesa's (BME:ELE) Dividend Will Be Reduced To €0.76

Endesa, S.A. ( BME:ELE ) is reducing its dividend to €0.76 on the 1st of July. The yield is still above the industry...

Apr 28
Endesa (BME:ELE) Is Reducing Its Dividend To €0.76

Endesa (BME:ELE) Is Reducing Its Dividend To €0.76

Endesa, S.A. ( BME:ELE ) has announced it will be reducing its dividend payable on the 1st of July to €0.76. However...

Shareholder Returns

ELEES Electric UtilitiesES Market
7D3.2%4.1%2.9%
1Y-11.4%1.3%-6.5%

Return vs Industry: ELE underperformed the Spanish Electric Utilities industry which returned -0.6% over the past year.

Return vs Market: ELE underperformed the Spanish Market which returned -7.8% over the past year.

Price Volatility

Is ELE's price volatile compared to industry and market?
ELE volatility
ELE Average Weekly Movement3.9%
Electric Utilities Industry Average Movement4.2%
Market Average Movement4.4%
10% most volatile stocks in ES Market7.7%
10% least volatile stocks in ES Market1.2%

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

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

About the Company

FoundedEmployeesCEOWebsite
19449,321Jose Damian Bogas Galvezhttps://www.endesa.com

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, 2021, it distributed electricity to approximately 21 million customers covering a total area of approximately 195,794 square kilometers.

Endesa Fundamentals Summary

How do Endesa's earnings and revenue compare to its market cap?
ELE fundamental statistics
Market Cap€22.07b
Earnings (TTM)€1.28b
Revenue (TTM)€23.32b

17.2x

P/E Ratio

0.9x

P/S Ratio

Is ELE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELE income statement (TTM)
Revenue€23.32b
Cost of Revenue€18.30b
Gross Profit€5.02b
Other Expenses€3.74b
Earnings€1.28b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)1.21
Gross Margin21.52%
Net Profit Margin5.50%
Debt/Equity Ratio271.8%

How did ELE perform over the long term?

See historical performance and comparison

Dividends

6.9%

Current Dividend Yield

119%

Payout Ratio

Does ELE pay a reliable dividends?

See ELE dividend history and benchmarks
When do you need to buy ELE by to receive an upcoming dividend?
Endesa dividend dates
Ex Dividend DateJun 29 2022
Dividend Pay DateJul 01 2022
Days until Ex dividend33 days
Days until Dividend pay date35 days

Does ELE pay a reliable dividends?

See ELE dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry

12.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ELE (€20.85) is trading below our estimate of fair value (€23.89)

Significantly Below Fair Value: ELE is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: ELE is poor value based on its Price-To-Earnings Ratio (17.2x) compared to the European Electric Utilities industry average (10.6x).

PE vs Market: ELE is good value based on its Price-To-Earnings Ratio (17.2x) compared to the Spanish market (18.2x).

Price to Earnings Growth Ratio

PEG Ratio: ELE is poor value based on its PEG Ratio (3x)

Price to Book Ratio

PB vs Industry: ELE is overvalued based on its Price-To-Book Ratio (4.6x) compared to the ES Electric Utilities industry average (2.7x).

Future Growth

How is Endesa forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

5.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELE's forecast earnings growth (5.7% per year) is above the savings rate (0.9%).

Earnings vs Market: ELE's earnings (5.7% per year) are forecast to grow slower than the Spanish market (13% per year).

High Growth Earnings: ELE's earnings are forecast to grow, but not significantly.

Revenue vs Market: ELE's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: ELE's revenue is forecast to decline over the next 3 years (-2.8% 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 (27.6%)

Past Performance

How has Endesa performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

-4.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ELE has a large one-off loss of €588.0M impacting its March 31 2022 financial results.

Growing Profit Margin: ELE's current net profit margins (5.5%) are lower than last year (6.2%).

Past Earnings Growth Analysis

Earnings Trend: ELE's earnings have declined by 4.4% per year over the past 5 years.

Accelerating Growth: ELE's earnings growth over the past year (23.2%) exceeds its 5-year average (-4.4% per year).

Earnings vs Industry: ELE earnings growth over the past year (23.2%) exceeded the Electric Utilities industry 10.4%.

Return on Equity

High ROE: Whilst ELE's Return on Equity (26.73%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Endesa's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ELE's short term assets (€18.6B) do not cover its short term liabilities (€21.6B).

Long Term Liabilities: ELE's short term assets (€18.6B) do not cover its long term liabilities (€21.4B).

Debt to Equity History and Analysis

Debt Level: ELE's net debt to equity ratio (260.4%) is considered high.

Reducing Debt: ELE's debt to equity ratio has increased from 57.9% to 271.8% over the past 5 years.

Debt Coverage: ELE's debt is not well covered by operating cash flow (11.6%).

Interest Coverage: ELE's interest payments on its debt are well covered by EBIT (27.4x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

6.89%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 26 2022Ex Dividend DateJun 29 2022Dividend Pay DateJul 01 20222 days from Ex DividendBuy in the next 33 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ELE's dividend (6.89%) is higher than the bottom 25% of dividend payers in the Spanish market (1.81%).

High Dividend: ELE's dividend (6.89%) is in the top 25% of dividend payers in the Spanish market (5.42%)

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 increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (118.7%), ELE's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: ELE is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure

CEO

Jose Damian Bogas Galvez (66 yo)

7.58yrs

Tenure

€1,808,000

Compensation

Mr. Jose Damian Bogas Galvez has been the Chief Executive Officer and Executive Director at Endesa, S.A. since October 07, 2014. Mr. Bogas Galvez served as General Manager of Spain and Portugal at Endesa,...

CEO Compensation Analysis

Compensation vs Market: Jose Damian's total compensation ($USD1.93M) is about average for companies of similar size in the Spanish market ($USD2.65M).

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

Leadership Team

Experienced Management: ELE's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: ELE's board of directors are considered experienced (3.1 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.

Ownership Breakdown

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

Top Shareholders

Company Information

Endesa, S.A.'s employee growth, exchange listings and data sources

Key Information

  • Name: Endesa, S.A.
  • Ticker: ELE
  • Exchange: BME
  • Founded: 1944
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: €22.072b
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.