BIT:ENEL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer and overvalued.


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

1.8%

ENEL

1.0%

IT Electric Utilities

0.4%

IT Market


1 Year Return

54.4%

ENEL

15.7%

IT Electric Utilities

18.9%

IT Market

Return vs Industry: ENEL exceeded the Italian Electric Utilities industry which returned 15.7% over the past year.

Return vs Market: ENEL exceeded the Italian Market which returned 18.9% over the past year.


Shareholder returns

ENELIndustryMarket
7 Day1.8%1.0%0.4%
30 Day0.5%-0.7%4.6%
90 Day9.4%0.9%13.1%
1 Year62.2%54.4%20.3%15.7%24.3%18.9%
3 Year112.8%85.6%64.3%43.2%40.9%20.9%
5 Year134.8%90.2%50.9%16.9%28.1%-21.7%

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?

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENEL (€6.88) is trading below our estimate of fair value (€8.95)

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


Price To Earnings Ratio

PE vs Industry: ENEL is poor value based on its PE Ratio (27.2x) compared to the Electric Utilities industry average (12.4x).

PE vs Market: ENEL is poor value based on its PE Ratio (27.2x) compared to the Italian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: ENEL is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: ENEL is overvalued based on its PB Ratio (2.3x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is Enel forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENEL's forecast earnings growth (8.5% per year) is above the savings rate (2.9%).

Earnings vs Market: ENEL's earnings (8.5% per year) are forecast to grow slower than the Italian market (9% per year).

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

Revenue vs Market: ENEL's revenue (2.4% per year) is forecast to grow slower than the Italian market (3% per year).

High Growth Revenue: ENEL's revenue (2.4% 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 (15.1%).


Next Steps

Past Performance

How has Enel performed over the past 5 years?

26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENEL has large one-off items impacting its financial results.

Growing Profit Margin: ENEL's current net profit margins (3.4%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: ENEL's earnings have grown significantly by 26.7% 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 (-38%) over the past year, making it difficult to compare to the Electric Utilities industry average (-1.3%).


Return on Equity

High ROE: ENEL's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Enel's financial position?


Financial Position Analysis

Short Term Liabilities: ENEL's short term assets (€36.1B) do not cover its short term liabilities (€39.1B)

Long Term Liabilities: ENEL's short term assets (36.1B) do not cover its long term liabilities (83.1B)


Debt to Equity History and Analysis

Debt Level: ENEL's debt to equity ratio (128%) is considered high

Reducing Debt: ENEL's debt to equity ratio has increased from 115.5% to 128% over the past 5 years.

Debt Coverage: ENEL's debt is not well covered by operating cash flow (19%).

Interest Coverage: ENEL's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: ENEL has a high level of physical assets or inventory.

Debt Coverage by Assets: ENEL's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

4.65%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%2.0%markettop25%4.4%industryaverage4.1%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: ENEL's dividend (4.65%) is higher than the bottom 25% of dividend payers in the Italian market (1.98%).

High Dividend: ENEL's dividend (4.65%) is in the top 25% of dividend payers in the Italian market (4.37%)


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: With its high payout ratio (118.9%), ENEL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENEL's dividends in 3 years are forecast to be covered by earnings (69.3% payout ratio).


Next Steps

Management

What is the CEO of Enel's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Francesco Starace (64yo)

5.5yrs

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 ($USD0.00) is below average for companies of similar size in the Italian market ($USD841.83K).

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


Management Age and Tenure

5.4yrs

Average Tenure

60yo

Average Age

Experienced Management: ENEL's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: ENEL's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

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.


Management Team

  • Carlo Tamburi (60yo)

    Head of Country Italy

    • Tenure: 14.8yrs
    • Compensation: €37.81k
  • Francesca Di Carlo

    Head of Human Resources & Organization

    • Tenure: 5.3yrs
  • Claudio Machetti (61yo)

    Head of Global Trading

    • Tenure: 14.4yrs
  • Monica Girardi

    Head of Group Investor Relations

    • Tenure: 0yrs
  • Francesco Starace (64yo)

    CEO, GM & Director

    • Tenure: 5.5yrs
    • Compensation: €2.73m
  • Livio Gallo (69yo)

    Head of Global Infrastructure & Networks

    • Tenure: 14.8yrs
  • Roberta Vivenzio

    Head of Global Media Relations

    • Tenure: 0yrs
  • Alberto de Paoli (54yo)

    Chief Financial Officer

    • Tenure: 5yrs
  • Roberto Antonio Deambrogio (44yo)

    Head of Communications of the Group

    • Tenure: 1.1yrs
  • Giulio Fazio (48yo)

    Head of Legal & Corporate Affairs

    • Tenure: 3.8yrs

Board Members

  • Angelo Taraborrelli (71yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: €146.00k
  • Cesare Calari (65yo)

    Independent Director

    • Tenure: 2.5yrs
  • Francesco Starace (64yo)

    CEO, GM & Director

    • Tenure: 5.5yrs
    • Compensation: €2.73m
  • Maria Patrizia Grieco (67yo)

    Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: €246.90k
  • Anna Svelto (51yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €142.00k
  • Alberto Bianchi (65yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €137.00k
  • Paola Girdinio (63yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €142.00k
  • Barbara Tadolini (59yo)

    Chairman of the Board of Statutory Auditors

    • Tenure: 0.5yrs
  • Alberto Pera (70yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €142.00k
  • Alfredo Antoniozzi (63yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: €75.34k

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: €69.893b
  • Shares outstanding: 10.17b
  • 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
ESOC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1999
0NRELSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1999
ENLXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURNov 1999
ENELBIT (Borsa Italiana)YesOrdinary SharesITEURNov 1999
ENELSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFNov 1999
ENEL NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1999
ENELWBAG (Wiener Boerse AG)YesOrdinary SharesATEURNov 1999
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
ENLA.YOTCPK (Pink Sheets LLC)UN SPON ADR EA REPR 1 ORD SHSUSUSDApr 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 Analysis2019/11/14 20:46
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.