BIT:ENEL

Stock Analysis Report

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Executive Summary

Enel SpA operates as an integrated electricity and gas operator worldwide. More Details


Snowflake Analysis

Second-rate dividend payer with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ENEL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

ENEL

-0.5%

IT Electric Utilities

-1.1%

IT Market


1 Year Return

11.2%

ENEL

6.9%

IT Electric Utilities

-12.8%

IT Market

Return vs Industry: ENEL exceeded the Italian Electric Utilities industry which returned 6.9% over the past year.

Return vs Market: ENEL exceeded the Italian Market which returned -12.8% over the past year.


Shareholder returns

ENELIndustryMarket
7 Day-1.9%-0.5%-1.1%
30 Day-4.0%-1.7%-0.4%
90 Day-5.0%1.9%0.07%
1 Year15.9%11.2%10.8%6.9%-10.6%-12.8%
3 Year67.1%45.6%51.1%34.0%-9.9%-18.1%
5 Year140.0%92.9%70.5%33.7%-0.5%-31.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ENEL (€7.42) is trading above our estimate of fair value (€6.74)

Significantly Below Fair Value: ENEL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ENEL is poor value based on its PE Ratio (39.6x) compared to the XE Electric Utilities industry average (12x).

PE vs Market: ENEL is poor value based on its PE Ratio (39.6x) compared to the Italian market (17.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ENEL is overvalued based on its PB Ratio (2.6x) compared to the XE Electric Utilities industry average (0.8x).


Next Steps

Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENEL's forecast earnings growth (7.4% per year) is above the savings rate (2%).

Earnings vs Market: ENEL's earnings (7.4% per year) are forecast to grow slower than the Italian market (25% per year).

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

Revenue vs Market: ENEL's revenue (4.8% per year) is forecast to grow faster than the Italian market (3.6% per year).

High Growth Revenue: ENEL's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENEL's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Enel performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENEL has a large one-off loss of €4.1B impacting its June 30 2020 financial results.

Growing Profit Margin: ENEL's current net profit margins (2.7%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: ENEL's earnings have grown by 13% per year over the past 5 years.

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

Earnings vs Industry: ENEL had negative earnings growth (-61.6%) over the past year, making it difficult to compare to the Electric Utilities industry average (-5.4%).


Return on Equity

High ROE: ENEL's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Enel's financial position?


Financial Position Analysis

Short Term Liabilities: ENEL's short term assets (€35.3B) do not cover its short term liabilities (€41.4B).

Long Term Liabilities: ENEL's short term assets (€35.3B) do not cover its long term liabilities (€82.2B).


Debt to Equity History and Analysis

Debt Level: ENEL's debt to equity ratio (144.4%) is considered high.

Reducing Debt: ENEL's debt to equity ratio has increased from 101.1% to 144.4% over the past 5 years.

Debt Coverage: ENEL's debt is not well covered by operating cash flow (13.8%).

Interest Coverage: ENEL's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

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

4.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ENEL's dividend (4.53%) is higher than the bottom 25% of dividend payers in the Italian market (1.57%).

High Dividend: ENEL's dividend (4.53%) is low compared to the top 25% of dividend payers in the Italian market (5.29%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.6%), ENEL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENEL's dividends in 3 years are forecast to be covered by earnings (71.6% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Francesco Starace (65 yo)

6.33yrs

Tenure

€2,725,764

Compensation

Mr. Francesco Starace has been the Chief Executive Officer and General Manager of Enel SpA since May 27, 2014. Mr. Starace served as the Chief Executive Officer and General Manager of Enel Green Power S.p. ...


CEO Compensation Analysis

Compensation vs Market: Francesco's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD4.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Francesco Starace
CEO, GM & Director6.33yrs€2.73mno data
Alberto de Paoli
Chief Financial Officer5.83yrsno datano data
Monica Girardi
Head of Group Investor Relationsno datano datano data
Giulio Fazio
Head of Legal & Corporate Affairs4.67yrsno datano data
Roberto Antonio Deambrogio
Head of Communications of the Group1.92yrsno datano data
Francesca Di Carlo
Head of Human Resources & Organization6.17yrsno datano data
Carlo Tamburi
Head of Country Italy15.67yrs€37.81kno data
Livio Gallo
Head of Global Infrastructure & Networks15.67yrsno datano data
Claudio Machetti
Head of Global Trading15.25yrsno datano data
Roberta Vivenzio
Head of Global Media Relationsno datano datano data
Simone Mori
Head of Europe & Euro-Mediterranean Affairs6.17yrsno datano data
Ernesto Ciorra
Head of Innovation & Sustainability6yrsno datano data

6.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ENEL's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Francesco Starace
CEO, GM & Director6.33yrs€2.73mno data
Cesare Calari
Independent Director3.33yrsno datano data
Samuel Leupold
Independent Director0.33yrno datano data
Anna Svelto
Independent Director6.33yrs€142.00kno data
Barbara Tadolini
Chairman of the Board of Statutory Auditors1.33yrsno datano data
Mirella Pellegrini
Independent Director0.33yrno datano data
Romina Guglielmetti
Statutory Auditor4.33yrsno datano data
Claudio Sottoriva
Statutory Auditor1.33yrsno datano data
Michele Alberto Crisostomo
Independent Chairman of the Board0.33yrno datano data
Costanza Esclapon de Villeneuve
Independent Director0.33yrno datano data
Alberto Marchi
Independent Director0.33yrno datano data
Mariana Mazzucato
Independent Director0.33yrno datano data

0.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: ENEL's board of directors are not considered experienced ( 0.8 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.


Top Shareholders

Company Information

Enel SpA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enel SpA
  • Ticker: ENEL
  • Exchange: BIT
  • Founded: 1962
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €75.423b
  • Shares outstanding: 10.16b
  • Website: https://www.enel.com

Number of Employees


Location

  • Enel SpA
  • Viale Regina Margherita, 137
  • Rome
  • Rome
  • 198
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1999
ENELBIT (Borsa Italiana)YesOrdinary SharesITEURNov 1999
ESOC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1999
0NRELSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1999
ENLXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURNov 1999
ENELMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1999
ENELSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFNov 1999
ENEL NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1999
ENELWBAG (Wiener Boerse AG)YesOrdinary SharesATEURNov 1999
ENLDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1999
ENLA.YOTCPK (Pink Sheets LLC)UN SPON ADR EA REPR 1 ORD SHSUSUSDApr 2008
ENLADB (Deutsche Boerse AG)UN SPON ADR EA REPR 1 ORD SHSDEEURApr 2008
0TGALSE (London Stock Exchange)UN SPON ADR EA REPR 1 ORD SHSGBUSDApr 2008

Biography

Enel SpA operates as an integrated electricity and gas operator worldwide. The company generates, transmits, distributes, purchases, transports, and sells electricity; transports and markets natural gas; s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 04:13
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.