Endesa (ENAA) AI Stock Analysis

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Endesa

(Frankfurt:ENAA)

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Positive Factors

Growing regulated earningsRegulated businesses now provide about half of EBITDA, up from 40%, increasing the share of earnings tied to networks and non-mainland generation. This mix should improve visibility and predictability over the next several quarters, reducing reliance on volatile wholesale outcomes.

Negative Factors

Leverage and weaker cash conversionEndesa remains meaningfully leveraged, and declining free cash flow reduces the cash cushion available for investment, debt reduction and distributions. Moderate cash conversion means reported earnings may not consistently translate into discretionary funds, increasing sensitivity to weaker operations.

Endesa (ENAA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 51.38B
Dividend Yield: 3.52%
Average Volume (3M): 3
Price to Earnings (P/E): 19.0
Beta (1Y): 0.17
Revenue Growth: 6.36%
EPS Growth: 13.86%
Country: Germany
Employees: 8,946
Sector: Utilities
Sector Strength: 66
Industry: Regulated Electric

Endesa Business Overview & Revenue Model

Company Description

Endesa, S.A. is a major energy corporation primarily engaged in the production, distribution, and retail sale of electricity, predominantly operating within Spain and Portugal. The company's power generation capacity is diverse, utilizing sources suc...

Endesa Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:0.92%|Next Earnings Date:Mar 01, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Management reported strong EBITDA, net income, net ordinary income, cash generation, efficiency savings and regulated-business growth, while confirming guidance above EUR 2.4 billion and highlighting structural demand growth, grid investment and potential capacity-market contributions. The main challenges were higher ancillary service costs, weaker renewable margins caused by lower wind and hydro resources and lower achieved prices, elevated market volatility, higher interruption time due to wildfires, and restrictive data center regulation. These negative factors were acknowledged but did not outweigh the reported financial performance, improving customer trends and positive strategic outlook.

Positive Updates

Strong Earnings Growth

For the first 9 months of 2026, EBITDA increased 8% year-on-year, while net income grew 15% to EUR 2.0 billion. Excluding the EUR 0.2 billion workforce restructuring provision, EBITDA increased 13%, and net ordinary income rose 22% to EUR 2.10 billion.

Negative Updates

Workforce Restructuring Provision

Reported EBITDA of EUR 4.6 billion included a EUR 0.2 billion workforce restructuring provision.

Company Guidance

Endesa confirmed its net ordinary income guidance of more than EUR 2.4 billion despite the more challenging market conditions expected in the fourth quarter; it expects the free power margin to hold at EUR 53 per megawatt hour for full year, forecasts ancillary services cost at the end of the year between EUR 5.5 billion and EUR 6 billion, expects customer trends to reverse in the short to medium term, with the loss of clients reduced more than 50% in October and the phenomenon expected to be over during the final of this year and the beginning of the next year, expects further savings in the fourth quarter and is studying for a new wave in 2027, foresees the first capacity auction are likely before 2027 and assumes a prudent annual contribution from 2027 onwards, and will implement the EUR 2 billion share buyback program authorized through December 2027, with EUR 1.4 billion executed and 70% completion at 9 months of 2026.

Endesa Risk Analysis

Endesa disclosed 22 risk factors in its most recent earnings report. Endesa reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.The illiquidity of our ADSs and common stock could unfavorably affect the prices of our securities, the ability to maintain a favorable tax status in Chile, and registration with the U.S. SEC.Q4, 2019

2.Our business faces risks from the promotion of decarbonization efforts both on a global and on a national scale.Q4, 2019

3.We are subject to potential financial risks resulting from climate change legislation and regulation to limit greenhouse gas (GHG) emissions.Q4, 2019

Endesa Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

DE:ENAA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XEL	69Neutral	$51.67B	18.69	11.01%	2.92%	4.35%	30.94%
ETR	67Neutral	$53.47B	25.01	11.32%	2.32%	10.88%	7.12%
EXC	67Neutral	$47.85B	18.11	8.95%	3.57%	6.67%	-7.99%
D	66Neutral	$61.35B	23.06	9.28%	3.83%	23.11%	2.81%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ED	65Neutral	$44.33B	19.34	8.90%	2.89%	9.50%	10.40%

* Utilities Sector Average

Performance Comparison

DE:ENAA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:ENAA	Endesa S.A. Unsponsored ADR	22.00	6.87	45.36%
ED	Consolidated Edison, Inc.	121.44	26.08	27.35%
D	Dominion Energy Inc	69.64	10.58	17.92%
ETR	Entergy Corp.	110.30	15.47	16.32%
EXC	Exelon Corp.	46.53	1.96	4.39%
XEL	Xcel Energy	80.37	1.90	2.42%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Endesa AI Stock Analysis