Enagás (BME:ENG) - Share price, News & Analysis

ENG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	3/6
Dividends	5/6

ENG Stock Overview

Enagás, S.A. engages in the development, operation, and maintenance of gas infrastructures in Spain, Mexico, Chile, Peru, Albania, Greece, Italy, and the United States.

Rewards

Trading at 13.2% below our estimate of its fair value

Risk Analysis

Earnings are forecast to decline by an average of 8.8% per year for the next 3 years

Debt is not well covered by operating cash flow

Dividend of 8.03% is not well covered by earnings

Enagás Competitors

Naturgy Energy Group

BME:NTGY

€26.4b

Linde

NYSE:LIN

US$155.5b

TotalEnergies

ENXTPA:TTE

€133.0b

Glencore

LSE:GLEN

UK£65.0b

Price History & Performance

Summary of all time highs, changes and price drops for Enagás
Historical stock prices
Current Share Price	€21.41
52 Week High	€21.61
52 Week Low	€17.70
Beta	0.55
1 Month Change	2.20%
3 Month Change	16.93%
1 Year Change	12.15%
3 Year Change	-14.43%
5 Year Change	-17.78%
Change since IPO	248.13%

Recent News & Updates

Apr 17

Enagás' (BME:ENG) Dividend Will Be Increased To €0.83

Enagás, S.A. ( BME:ENG ) will increase its dividend on the 7th of July to €0.83. This will take the annual payment to...

Apr 03

Enagás' (BME:ENG) Upcoming Dividend Will Be Larger Than Last Year's

Enagás, S.A. ( BME:ENG ) will increase its dividend on the 7th of July to €0.83. This will take the annual payment to...

Mar 16

A Look At The Intrinsic Value Of Enagás, S.A. (BME:ENG)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Enagás, S.A. ( BME:ENG...

Shareholder Returns

	ENG	ES Gas Utilities	ES Market
7D	4.1%	4.5%	2.7%
1Y	12.2%	13.8%	-9.2%

Return vs Industry: ENG underperformed the Spanish Gas Utilities industry which returned 14.7% over the past year.

Return vs Market: ENG exceeded the Spanish Market which returned -8.1% over the past year.

Price Volatility

Is ENG's price volatile compared to industry and market?
ENG volatility
ENG Average Weekly Movement	3.0%
Gas Utilities Industry Average Movement	4.6%
Market Average Movement	4.5%
10% most volatile stocks in ES Market	8.4%
10% least volatile stocks in ES Market	1.1%

Stable Share Price: ENG is less volatile than 75% of Spanish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ENG's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1972	1,328	Arturo Aizpiri	https://www.enagas.es

Enagás, S.A. engages in the development, operation, and maintenance of gas infrastructures in Spain, Mexico, Chile, Peru, Albania, Greece, Italy, and the United States. It operates through Gas transmission, Regasification, and Storage of Gas segments. The company provides gas transmission services through primary and secondary transmission pipelines; natural gas regasification services; and operates underground storage facilities.

Enagás Fundamentals Summary

How do Enagás's earnings and revenue compare to its market cap?
ENG fundamental statistics
Market Cap	€5.60b
Earnings (TTM)	€403.83m
Revenue (TTM)	€975.69m

13.9x

P/E Ratio

5.7x

P/S Ratio

Is ENG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENG income statement (TTM)
Revenue	€975.69m
Cost of Revenue	€49.05m
Gross Profit	€926.63m
Other Expenses	€522.81m
Earnings	€403.83m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.54
Gross Margin	94.97%
Net Profit Margin	41.39%
Debt/Equity Ratio	174.3%

How did ENG perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

110%

Payout Ratio

Does ENG pay a reliable dividends?

See ENG dividend history and benchmarks

When do you need to buy ENG by to receive an upcoming dividend?
Enagás dividend dates
Ex Dividend Date	Jul 05 2022
Dividend Pay Date	Jul 07 2022
Days until Ex dividend	46 days
Days until Dividend pay date	48 days

Does ENG pay a reliable dividends?

See ENG dividend history and benchmarks

Valuation

Is Enagás 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

13.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ENG (€21.41) is trading below our estimate of fair value (€24.65)

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

Price To Earnings Ratio

PE vs Industry: ENG is poor value based on its PE Ratio (13.9x) compared to the European Gas Utilities industry average (11.8x).

PE vs Market: ENG is good value based on its PE Ratio (13.9x) compared to the Spanish market (18.1x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: ENG is overvalued based on its PB Ratio (1.8x) compared to the XE Gas Utilities industry average (0.9x).

Future Growth

How is Enagás forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-8.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENG's earnings are forecast to decline over the next 3 years (-8.8% per year).

Earnings vs Market: ENG's earnings are forecast to decline over the next 3 years (-8.8% per year).

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

Revenue vs Market: ENG's revenue is expected to decline over the next 3 years (-4.6% per year).

High Growth Revenue: ENG's revenue is forecast to decline over the next 3 years (-4.6% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ENG's Return on Equity is forecast to be low in 3 years time (11.1%).

Past Performance

How has Enagás performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ENG has high quality earnings.

Growing Profit Margin: ENG's current net profit margins (41.4%) are lower than last year (42.1%).

Past Earnings Growth Analysis

Earnings Trend: ENG's earnings have declined by 2.2% per year over the past 5 years.

Accelerating Growth: ENG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ENG had negative earnings growth (-9%) over the past year, making it difficult to compare to the Gas Utilities industry average (12%).

Return on Equity

High ROE: ENG's Return on Equity (13%) is considered low.

Financial Health

How is Enagás's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ENG's short term assets (€1.9B) exceed its short term liabilities (€1.5B).

Long Term Liabilities: ENG's short term assets (€1.9B) do not cover its long term liabilities (€5.3B).

Debt to Equity History and Analysis

Debt Level: ENG's net debt to equity ratio (127.3%) is considered high.

Reducing Debt: ENG's debt to equity ratio has reduced from 247.1% to 174.3% over the past 5 years.

Debt Coverage: ENG's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: ENG's interest payments on its debt are well covered by EBIT (5.5x coverage).

Balance Sheet

Dividend

What is Enagás's 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

8.03%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: ENG's dividend (8.03%) is higher than the bottom 25% of dividend payers in the Spanish market (1.83%).

High Dividend: ENG's dividend (8.03%) is in the top 25% of dividend payers in the Spanish market (5.43%)

Stability and Growth of Payments

Stable Dividend: ENG's dividends per share have been stable in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (110.1%), ENG's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (88.2%), ENG's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

4.6yrs

Average management tenure

CEO

Arturo Aizpiri

0.25

Tenure

Mr. Arturo Gonzalo Aizpiri is CEO & Director of Enagás, S.A. from February 2022.

Leadership Team

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

Board Members

Experienced Board: ENG's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31