BIT:ENI

Stock Analysis Report

Executive Summary

Eni S.p.A. engages in the exploration, development, and production of crude oil and natural gas.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Eni's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.4%

ENI

9.1%

IT Oil and Gas

1.5%

IT Market


1 Year Return

-41.1%

ENI

-30.2%

IT Oil and Gas

-23.9%

IT Market

Return vs Industry: ENI underperformed the Italian Oil and Gas industry which returned -30.2% over the past year.

Return vs Market: ENI underperformed the Italian Market which returned -26.2% over the past year.


Shareholder returns

ENIIndustryMarket
7 Day8.4%9.1%1.5%
30 Day-9.0%-8.8%-16.5%
90 Day-35.0%-31.2%-27.1%
1 Year-37.6%-41.1%-26.1%-30.2%-20.6%-23.9%
3 Year-27.8%-38.8%-2.2%-16.2%-10.6%-19.6%
5 Year-27.3%-45.6%6.4%-17.2%-24.4%-50.8%

Price Volatility Vs. Market

How volatile is Eni's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eni 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: ENI (€9.32) is trading below our estimate of fair value (€20.37)

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


Price To Earnings Ratio

PE vs Industry: ENI is poor value based on its PE Ratio (226.1x) compared to the Oil and Gas industry average (6.1x).

PE vs Market: ENI is poor value based on its PE Ratio (226.1x) compared to the Italian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: ENI is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: ENI is overvalued based on its PB Ratio (0.7x) compared to the XE Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Eni forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

42.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENI's forecast earnings growth (42.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ENI's earnings (42.4% per year) are forecast to grow faster than the Italian market (11.9% per year).

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

Revenue vs Market: ENI's revenue (2.6% per year) is forecast to grow faster than the Italian market (0.05% per year).

High Growth Revenue: ENI's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENI's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Eni performed over the past 5 years?

48.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENI has high quality earnings.

Growing Profit Margin: ENI's current net profit margins (0.2%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: ENI's earnings have grown significantly by 48.8% per year over the past 5 years.

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

Earnings vs Industry: ENI had negative earnings growth (-96.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (-4.1%).


Return on Equity

High ROE: ENI's Return on Equity (0.3%) is considered low.


Next Steps

Financial Health

How is Eni's financial position?


Financial Position Analysis

Short Term Liabilities: ENI's short term assets (€34.9B) exceed its short term liabilities (€29.6B).

Long Term Liabilities: ENI's short term assets (€34.9B) do not cover its long term liabilities (€45.9B).


Debt to Equity History and Analysis

Debt Level: ENI's debt to equity ratio (51.2%) is considered high.

Reducing Debt: ENI's debt to equity ratio has increased from 39.4% to 51.2% over the past 5 years.

Debt Coverage: ENI's debt is well covered by operating cash flow (50.5%).

Interest Coverage: ENI's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Next Steps

Dividend

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

9.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ENI's dividend (9.23%) is higher than the bottom 25% of dividend payers in the Italian market (2.39%).

High Dividend: ENI's dividend (9.23%) is in the top 25% of dividend payers in the Italian market (5.71%)


Stability and Growth of Payments

Stable Dividend: ENI's dividend payments have been volatile in the past 10 years.

Growing Dividend: ENI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (2087.4%), ENI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENI's dividends in 3 years are forecast to be covered by earnings (84.1% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Claudio Descalzi (64yo)

3s

Tenure

€6,456,000

Compensation

Mr. Claudio Descalzi has been the Chief Executive Officer of Eni SpA since May 9, 2014 and serves as its General Manager. Mr. Descalzi served as the President of Assomineraria from 2006 to 2014 and Vice Pr ...


CEO Compensation Analysis

Compensation vs Market: Claudio's total compensation ($USD6.97M) is above average for companies of similar size in the Italian market ($USD4.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Claudio Descalzi
CEO, GM & Director3yrs€6.46m0.0019% 638.9k
Massimo Mondazzi
Chief Financial Officer7.33yrsno datano data
Stefano Maione
Chief Development0.75yrno datano data
Francesco Gattei
Executive Vice President of Scenarios of Strategic Options & Investor Relationsno datano datano data
Luca Franceschini
Executive Vice President of Integrated Compliance Department3.58yrsno datano data
Stefano Speroni
Senior Executive Vice President of Legal Affairs1.25yrsno datano data
Marco Bardazzi
Executive Vice President of External Communication5.17yrsno datano data
Giuseppe Ricci
Chief Refining & Marketing Officer3.58yrsno datano data
Francesco Furci
Group Senior Vice President of HR & Organizationsno datano datano data

3.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ENI's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Claudio Descalzi
CEO, GM & Director3yrs€6.46m0.0019% 638.9k
Giorgio Ruffoni
Chairman of Stoccaggi Gas Italiano datano datano data
Giorgio Clarizia
Chairman of Polimeri Europano datano datano data
Alessandro Lorenzi
Non-Executive Independent Director8.92yrs€178.00kno data
Emma Marcegaglia
Chairman of the Board5.92yrs€500.00k0.0032% 1.1m
Rosalba Casiraghi
Chairman of the Board of Statutory Auditors3yrsno datano data
Diva Moriani
Non-Executive Independent Director5.92yrs€192.00kno data
Andrea Gemma
Non-Executive Independent Director5.92yrs€199.00kno data
Pietro Guindani
Non-Executive Independent Director5.92yrs€155.00kno data
Fabrizio Pagani
Chairman of Advisory Board & Non Executive Director2.75yrs€162.00kno data

5.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ENI's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ENI 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

Eni S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eni S.p.A.
  • Ticker: ENI
  • Exchange: BIT
  • Founded: 1953
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: €33.278b
  • Shares outstanding: 3.57b
  • Website: https://www.eni.com

Number of Employees


Location

  • Eni S.p.A.
  • Piazzale Enrico Mattei 1
  • Rome
  • Rome
  • 144
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENYSE (New York Stock Exchange)ADR EACH REP 2 ORD EUR1(MGT)USUSDNov 1995
E NBMV (Bolsa Mexicana de Valores)ADR EACH REP 2 ORD EUR1(MGT)MXMXNNov 1995
ENI1DB (Deutsche Boerse AG)ADR EACH REP 2 ORD EUR1(MGT)DEEURNov 1995
0TD2LSE (London Stock Exchange)ADR EACH REP 2 ORD EUR1(MGT)GBUSDNov 1995
EIPA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1995
ENIBIT (Borsa Italiana)YesOrdinary SharesITEURNov 1995
0N9SLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1995
ENIXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURNov 1995
ENIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1995
ENIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURNov 1995
ENISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFNov 1995
ENIENXTBR (Euronext Brussels)YesOrdinary SharesBEEURNov 1995

Biography

Eni S.p.A. engages in the exploration, development, and production of crude oil and natural gas. It operates through Exploration & Production, Gas & Power, and Refining & Marketing and Chemical segments. The company is involved in the field development and production activities, as well as liquefied natural gas (LNG) operations in 41 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, Mexico, the United States, Kazakhstan, Algeria, Australia, Iraq, Indonesia, Ghana, Mozambique, Bahrain, Oman, and United Arab Emirates. It also supplies, trades in, and markets gas and electricity; generates and sells electricity; transports international gas; supplies crude oil; and refines and markets petroleum products at retail and wholesale markets primarily in Italy and rest of Europe. In addition, the company engages in the petrochemicals business; commodity risk management and asset-backed trading activities; and production of various chemicals, including olefins and aromatics, basic and intermediate products, polystyrenes, elastomers, and polyethylene in Italy and Western Europe. Further, it is involved in commodity trading and derivatives. Eni S.p.A. was founded in 1953 and is headquartered in Rome, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 21:22
End of Day Share Price2020/04/06 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.