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Enel SpA Unsponsored ADR (ENLAY)
OTHER OTC:ENLAY

Enel SpA Unsponsored ADR (ENLAY) AI Stock Analysis

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Enel SpA Unsponsored ADR

(OTC:ENLAY)

69Neutral
Enel SpA receives a favorable overall score driven by strong operational efficiency and improved profitability margins. Despite challenges in revenue growth and high leverage, the positive earnings call and stable technical indicators support the stock's performance. Valuation remains attractive, adding to the stock's appeal.

Enel SpA Unsponsored ADR (ENLAY) vs. S&P 500 (SPY)

Enel SpA Unsponsored ADR Business Overview & Revenue Model

Company DescriptionEnel SpA Unsponsored ADR (ENLAY) is a global energy company headquartered in Italy, operating in the utilities sector. The company is engaged in the generation, distribution, and sale of electricity and gas. Enel operates across various segments including renewable energy, thermal generation, infrastructure and networks, and retail. It is one of the largest energy companies in the world, with a strong presence in Europe, Latin America, North America, Africa, and Asia.
How the Company Makes MoneyEnel SpA generates revenue primarily through the sale of electricity and gas. The company's key revenue streams include the generation of electricity from both renewable sources such as wind, solar, and hydroelectric, and conventional sources like coal and natural gas. Enel also earns money from the distribution and sale of electricity and gas to residential, commercial, and industrial customers. Additionally, the company invests in infrastructure and networks for energy distribution, which contributes to its earnings. Enel's strategy includes expanding its renewable energy portfolio and enhancing digital transformation, which are significant factors driving its revenue growth. The company has strategic partnerships and collaborations that enhance its capabilities in sustainable energy solutions, further supporting its revenue model.

Enel SpA Unsponsored ADR Financial Statement Overview

Summary
Enel SpA demonstrates strong operational efficiency with improved profitability margins. However, inconsistent revenue growth and high leverage present financial risks. Notable improvements in cash flow, but cash conversion efficiency remains a concern.
Income Statement
67
Positive
The company's gross profit margin is stable, with a recent TTM of 41.12%. However, the net profit margin showed improvement, increasing to 8.89% in TTM from 3.65% in the prior year. Revenue growth has been inconsistent, declining by 16.21% in the most recent year. The EBIT and EBITDA margins are strong indicators of operational efficiency, standing at 19.63% and 28.81% respectively in TTM.
Balance Sheet
62
Positive
The debt-to-equity ratio is high at 2.11, indicating substantial leverage. Despite this, ROE has improved to 20.80% in TTM, showcasing effective use of equity to generate profits. The equity ratio is relatively stable at 18.02%, reflecting a balanced capital structure but potential risk in financial stability due to high liabilities.
Cash Flow
59
Neutral
Free cash flow has increased significantly by 131.67% in TTM, indicating improved cash generation capability. However, the operating cash flow to net income ratio has decreased to 1.88 from 4.25, suggesting challenges in converting income into cash. Free cash flow to net income ratio is also at a moderate level of 0.61, indicating room for improvement in cash management.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
78.95B94.23B142.42B96.55B64.23B
Gross Profit
32.47B33.57B28.71B30.96B23.27B
EBIT
15.49B10.83B11.19B17.09B11.76B
EBITDA
22.74B19.39B20.11B16.40B14.95B
Net Income Common Stockholders
7.02B3.44B5.22B3.19B3.62B
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.92B11.33B24.79B11.02B6.37B
Total Assets
187.14B195.22B219.62B206.94B163.45B
Total Debt
70.35B73.56B87.91B70.92B58.66B
Net Debt
62.30B66.76B76.86B62.06B52.76B
Total Liabilities
137.97B150.12B177.54B164.60B121.10B
Stockholders Equity
33.73B31.75B28.66B29.65B28.32B
Cash FlowFree Cash Flow
4.29B1.85B-4.57B-2.13B1.96B
Operating Cash Flow
13.22B14.62B8.67B10.07B11.51B
Investing Cash Flow
-4.11B-10.61B-13.63B-10.88B-10.12B
Financing Cash Flow
-7.99B-8.36B7.37B3.78B-3.97B

Enel SpA Unsponsored ADR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.88
Price Trends
50DMA
8.22
Positive
100DMA
7.68
Positive
200DMA
7.51
Positive
Market Momentum
MACD
0.19
Positive
RSI
66.66
Neutral
STOCH
100.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENLAY, the sentiment is Positive. The current price of 8.88 is above the 20-day moving average (MA) of 8.68, above the 50-day MA of 8.22, and above the 200-day MA of 7.51, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 66.66 is Neutral, neither overbought nor oversold. The STOCH value of 100.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENLAY.

Enel SpA Unsponsored ADR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CICIG
82
Outperform
$6.00B4.1426.38%15.72%-4.14%13.02%
ELELP
79
Outperform
$6.38B12.439.22%4.93%-7.02%17.33%
SRSRE
74
Outperform
$51.15B17.089.76%3.23%-0.39%0.75%
69
Neutral
$91.47B11.8425.04%2.79%-8.80%61.27%
63
Neutral
$8.57B10.134.66%4.38%3.79%-12.91%
AEAES
55
Neutral
$8.69B6.6729.79%5.68%-3.22%141.11%
BIBIP
54
Neutral
$21.44B2,867.590.47%5.00%12.40%-108.27%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ENLAY
Enel SpA Unsponsored ADR
9.02
1.93
27.22%
BIP
Brookfield Infrastructure
32.99
3.90
13.41%
CIG
Companhia Energetica Minas Gerais
1.86
0.14
8.14%
ELP
Companhia Paranaense de Energia Pfd
8.84
1.78
25.21%
SRE
Sempra Energy
78.43
2.77
3.66%
AES
AES
11.71
-8.82
-42.96%

Enel SpA Unsponsored ADR Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 0.91%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in financial performance, stock growth, and strategic positioning for future opportunities. Although there were challenges related to currency devaluation and market-specific issues, the overall sentiment was positive, driven by strong financial results and strategic initiatives like the share buyback program.
Q1-2025 Updates
Positive Updates
Stock Performance and Dividend Achievements
Stock performance up by 33% and dividend paid amounting to over €9 billion, with a TSR standing at 52%.
Strong First Quarter Profitability
Group’s profitability continues to be strong with both EBITDA and net income up 2% year-on-year.
Energy Transition and Financial Strength
Reaching almost 70 gigawatts of emission-free capacity and securing 90% of EBITDA over the planned period, enhancing financial stability.
Improved Customer Base Management
Focus on valuable clients, reducing financial and industrial risk, and achieving a churn rate halved versus 2024.
EBITDA and Net Income Growth
EBITDA reached around €6 billion in Q1, up by €100 million on a like-for-like basis, with net income at €2 billion, increasing by 2% year-on-year.
Financial Flexibility and Share Buyback Program
Optimized capital structures with a share buyback program already started in Spain.
Negative Updates
Currency Devaluation Impact
Performance in Latin America affected by negative currency impacts, especially from the Brazilian real, impacting EBITDA by €80 million.
Challenges in Retail Business
Retail EBITDA performance in Italy impacted by customer base repositioning, with prices 30% to 40% lower than last year.
U.S. Market Limitations
No capacity planned to be added in the U.S. for 2025, with only 5% of total EBITDA contribution from North America.
Regulatory Framework Uncertainty
Ongoing discussions in Italy regarding distribution concession renewal, with no significant updates yet.
Company Guidance
During the call, Enel's CEO, Flavio Cattaneo, highlighted several key metrics and achievements, including a 33% increase in stock performance, dividends paid amounting to over €9 billion, and a total shareholder return (TSR) of 52%. He emphasized the company's robust financial position, with EBITDA secured at 90% over the planned period, and a full-year EBITDA target set 30% higher than the 2022 results. The first quarter of 2025 saw EBITDA and net income rise by 2% year-on-year, driven by a solid performance in grids and the integrated business in Spain, as well as a strong showing in North America with 1.1 gigawatts of new capacity added. The company reported a net debt to EBITDA ratio decrease to 2.5 times from 2.7, reflecting improved profitability. Enel maintained a focus on organic growth, sustainable capital allocation, and a disciplined approach to capturing market opportunities, including a strategic shift from greenfield to brownfield models. The guidance for 2025 was confirmed, with the company expecting a linear evolution of EBITDA in Italy, averaging €2.7 billion per quarter.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.