BME:ELE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

High growth potential and slightly overvalued.


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

-1.3%

ELE

0.6%

ES Electric Utilities

3.2%

ES Market


1 Year Return

-17.9%

ELE

0.3%

ES Electric Utilities

-23.6%

ES Market

Return vs Industry: ELE underperformed the Spanish Electric Utilities industry which returned -0.5% over the past year.

Return vs Market: ELE exceeded the Spanish Market which returned -25.5% over the past year.


Shareholder returns

ELEIndustryMarket
7 Day-1.3%0.6%3.2%
30 Day-12.7%-11.7%-13.1%
90 Day-19.3%-4.0%-25.2%
1 Year-13.9%-17.9%3.9%0.3%-20.8%-23.6%
3 Year-0.9%-15.5%40.4%23.8%-23.0%-30.4%
5 Year28.3%-0.3%27.5%-0.8%-25.8%-38.0%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELE (€18.88) is trading below our estimate of fair value (€37.93)

Significantly Below Fair Value: ELE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ELE is poor value based on its PE Ratio (116.9x) compared to the Electric Utilities industry average (10.4x).

PE vs Market: ELE is poor value based on its PE Ratio (116.9x) compared to the Spanish market (14x).


Price to Earnings Growth Ratio

PEG Ratio: ELE is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: ELE is overvalued based on its PB Ratio (2.6x) compared to the ES Electric Utilities industry average (1.5x).


Next Steps

Future Growth

How is Endesa forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELE's forecast earnings growth (23.6% per year) is above the savings rate (0.4%).

Earnings vs Market: ELE's earnings (23.6% per year) are forecast to grow faster than the Spanish market (10.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ELE's revenue (4.7% per year) is forecast to grow faster than the Spanish market (3.9% per year).

High Growth Revenue: ELE's revenue (4.7% 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 (20.4%)


Next Steps

Past Performance

How has Endesa performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELE has a large one-off loss of €1.8B impacting its December 31 2019 financial results.

Growing Profit Margin: ELE's current net profit margins (0.9%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: ELE's earnings have grown by 5.1% 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 (-87.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (9.7%).


Return on Equity

High ROE: ELE's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Endesa's financial position?


Financial Position Analysis

Short Term Liabilities: ELE's short term assets (€6.1B) do not cover its short term liabilities (€8.5B).

Long Term Liabilities: ELE's short term assets (€6.1B) do not cover its long term liabilities (€15.7B).


Debt to Equity History and Analysis

Debt Level: ELE's debt to equity ratio (75.2%) is considered high.

Reducing Debt: ELE's debt to equity ratio has increased from 64.4% to 75.2% over the past 5 years.

Debt Coverage: ELE's debt is well covered by operating cash flow (53.9%).

Interest Coverage: ELE's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet


Next Steps

Dividend

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

7.87%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ELE's dividend (7.81%) is higher than the bottom 25% of dividend payers in the Spanish market (3.03%).

High Dividend: ELE's dividend (7.81%) is low compared to the top 25% of dividend payers in the Spanish market (7.93%).


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 (913.3%), 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 (72.4% payout ratio).


Next Steps

Management

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

5.2yrs

Average board tenure


CEO

José Damián Bogas Gálvez (64yo)

5.5s

Tenure

€2,018,000

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 ($USD2.20M) is below average for companies of similar size in the Spanish market ($USD3.55M).

Compensation vs Earnings: José Damián's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
José Damián Bogas Gálvez
CEO & Executive Director5.5yrs€2.02m0.00022% 44.0k
Francisco José Queiroz de Barros de Lacerda
Independent Director5yrs€238.00kno data
Miquel Roca I Junyent
Lead Independent Directorno data€273.00k0.000030% 6.0k
Alejandro Echevarría Busquet
Independent Director10.83yrs€236.00k0.000020% 4.0k
Francesco Starace
Vice Chairman5.83yrsno datano data
Maria Patrizia Grieco
Director3yrs€207.00kno data
Alberto de Paoli
Director5.42yrsno datano data
Jorge Rosenblut Ratinoff
Chairman of Endesa Chileno datano datano data
Ignacio Garralda Ruiz de Velasco
Independent Director5yrs€250.00kno data
Juan Sánchez-Calero Guilarte
Independent Non Executive Chairman of the Board1yrno datano data

5.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: ELE's board of directors are considered experienced (5.2 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: €19.984b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELEZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1987
ELEBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURFeb 1987
0N9GLSE (London Stock Exchange)YesOrdinary SharesGBEURFeb 1987
ENADB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1987
ELEEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURFeb 1987
ELE-UETLX (Eurotlx)YesOrdinary SharesITEURFeb 1987
ELEWBAG (Wiener Boerse AG)YesOrdinary SharesATEURFeb 1987
ELE1 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 1987
ELEZ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 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, 2018, it distributed electricity to approximately 21 million populations covering a total area of 195,487 square kilometers. The company also sells energy, as well as value-added products and services to customers. 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 grids comprise 319.613 kilometers. Further, the company is involved in the management, operation, and administration of nuclear plants; exploitation of coal fields; electricity transmission business; issuance of debt instruments; provision of consultancy and civil engineering services; and development 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 headquartered in Madrid, Spain. Endesa, S.A. is a subsidiary of ENEL Iberia, S.L.U. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 20:56
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
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.