Endesa SA (ELE) AI Stock Analysis

• Market Cap: €28.40B
• Dividend Yield: 2.99%
• Average Volume (3M): 899.55K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.52
• Revenue Growth: -8.09%
• EPS Growth: 395.09%
• Country: ES
• Employees: 8,948
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Electric
• EPS (TTM): 0.55
• Shares Outstanding: 1,058,752,100
• 10 Day Avg. Volume: 810,118
• 30 Day Avg. Volume: 899,552
• PEG Ratio: 0.10
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -40.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €26.86
• Price Target Upside: -1.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 81 Outperform
• Price Target: €31.00 ▲(13.89%Upside)

Endesa SA demonstrates strong financial stability and technical bullishness, driving a high overall stock score. Despite valuation being moderate, the positive financial performance and technical outlook are the most significant factors contributing to its strength.

Positive Factors

Gas Margin

Gas margin & earnings contribution likely materially above expectations in 2025.

Share Buyback

Endesa’s announced €500m SBB program should provide some support to the share price.

Negative Factors

Earnings Growth

The likely normalization in power prices and retail margins should lead to negative earnings growth post 2026.

Valuation

Shares, which trade on a 2026-27E PE of c.13x, are largely seen as fully valued.

Endesa SA Business Overview & Revenue Model

Company Description

Endesa SA (ELE) is a leading Spanish energy company primarily engaged in the generation, distribution, and sale of electricity and gas. As a subsidiary of the Enel Group, Endesa operates in Spain and Portugal, offering a wide range of energy-related services. The company is a key player in the Iberian energy market and is involved in both conventional and renewable energy projects, striving to contribute to a sustainable energy future.

How the Company Makes Money

Endesa SA generates revenue through several key streams, primarily focusing on the generation and sale of electricity and gas to residential, commercial, and industrial customers. Its revenue model includes income from electricity generation plants, both conventional and renewable, as well as the distribution network that delivers energy to end-users. Additionally, Endesa earns money through the sale of natural gas and energy-related services such as maintenance, repair, and energy efficiency solutions. The company benefits from long-term contracts and tariff structures regulated by national and regional authorities. Strategic partnerships and investments in renewable energy projects also contribute significantly to Endesa's earnings, aligning with global trends towards cleaner energy solutions.

Endesa SA Financial Statement Overview

Summary

Endesa SA showcases a strong financial position with improved profitability and robust balance sheet metrics. Improved margins and equity growth indicate financial health, despite challenges in consistent revenue growth.

Income Statement

Endesa SA's income statement reflects a mixed performance. The gross profit margin improved slightly from 36.3% in 2023 to 39% in 2024, indicating better cost management. However, the net profit margin increased significantly from 3% to 9%, showing enhanced profitability. Revenue growth has been volatile, with a decrease of 16.5% from 2023 to 2024. The EBIT margin improved significantly from 6.6% to 14.7%, and the EBITDA margin increased from 13.3% to 25.9%, suggesting strong operational efficiency. Overall, the company demonstrates improved margins but faces challenges in sustaining revenue growth.

Balance Sheet

The balance sheet of Endesa SA shows a solid performance. The company has eliminated its total debt by 2024, improving its financial stability. The equity ratio increased from 17% to 21.7%, showing a stronger reliance on equity financing. Return on equity surged from 10.6% in 2023 to 23.3% in 2024, reflecting significant profitability improvements. The elimination of debt and increased equity ratio highlight a robust financial position, although the company should maintain a balanced growth approach to leverage this stability.

Cash Flow

Endesa SA's cash flow shows healthy management. The free cash flow to net income ratio is stable, indicating effective conversion of earnings into cash. Operating cash flow decreased from €4.7 billion in 2023 to €3.6 billion in 2024, but free cash flow remained positive at €1.7 billion. The decline in operating cash flow needs monitoring, but the overall cash flow position remains strong with positive free cash flow indicating good liquidity management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.93B	25.07B	32.54B	20.52B	16.64B
	Gross Profit
8.16B	9.10B	9.15B	5.16B	5.07B
	EBIT
3.07B	1.65B	6.12B	1.96B	1.89B
	EBITDA
5.42B	3.32B	5.40B	3.60B	3.34B
	Net Income Common Stockholders
1.89B	742.00M	2.54B	1.44B	1.39B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
840.00M	2.11B	7.14B	1.58B	1.58B
	Total Assets
37.34B	41.28B	49.96B	39.97B	32.06B
	Total Debt
10.49B	13.73B	18.49B	10.38B	4.26B
	Net Debt
9.65B	11.62B	17.62B	9.68B	3.85B
	Total Liabilities
28.04B	34.08B	44.20B	34.42B	24.60B
	Stockholders Equity
8.11B	7.02B	5.56B	5.38B	7.32B
Cash Flow		Free Cash Flow
1.72B	2.41B	-460.00M	539.00M	1.25B
	Operating Cash Flow
3.57B	4.70B	1.67B	2.62B	2.95B
	Investing Cash Flow
-1.33B	3.19B	-8.16B	-3.07B	-1.73B
	Financing Cash Flow
-3.50B	-6.65B	6.65B	752.00M	-1.04B

Endesa SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ELE, the sentiment is Positive. The current price of 27.22 is above the 20-day moving average (MA) of 27.06, above the 50-day MA of 26.01, and above the 200-day MA of 21.87, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ELE.

Endesa SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELE	81 Outperform	€28.40B	13.03	26.26%	2.99%	-8.09%	395.09%
NTGY	75 Outperform	€25.39B	13.24	20.32%	4.54%	-14.81%	-4.27%
IBE	74 Outperform	€103.57B	20.76	10.55%	2.91%	-3.50%	-20.24%
ANE	73 Outperform	€6.48B	17.90	6.11%	2.03%	-14.07%	-31.00%
Sector *	64 Neutral	$8.62B	10.39	4.24%	4.63%	4.07%	-13.04%
RED	59 Neutral	€9.64B	25.99	9.44%	4.24%	-22.76%	-46.60%
ENG	58 Neutral	€3.74B	10.27	-11.89%	8.24%	-1.54%	-184.82%

Endesa SA Corporate Events

Endesa Announces Series of Related Transactions with Enel Group

Endesa, S.A. has announced a series of related transactions with its controlling shareholder Enel S.p.A. and associated companies. These transactions, approved by the Board of Directors, include software agreements, service contracts, and financial arrangements, all exceeding the regulatory threshold for public disclosure. The Audit and Compliance Committee has reviewed and deemed these transactions fair and reasonable, ensuring transparency and compliance with corporate governance standards.

Endesa Approves 2024 Financials and Dividend Distribution

Endesa’s Ordinary General Meeting of Shareholders approved several key resolutions, including the annual accounts and management reports for 2024, the re-election of KPMG Auditores, S.L. as the auditor for 2026-2028, and the distribution of a dividend based on the year’s profits. These decisions reflect Endesa’s commitment to transparency and financial stability, reinforcing its position in the energy market and ensuring continued shareholder value.

Endesa Launches Second Tranche of Share Repurchase Program

Endesa, S.A. has announced the implementation of the second tranche of its share repurchase program, with a maximum monetary amount of 500 million euros, aiming to reduce its share capital by amortizing the acquired shares. This move is part of a broader strategy to optimize capital structure, and the majority shareholder, Enel S.p.A., has committed not to participate in the program, ensuring no market disruption during the execution period.

Endesa Completes First Tranche of Share Repurchase Program

Endesa has completed the first tranche of its Framework Program for the repurchase of own shares, acquiring a total of 698,426 shares at a weighted average price of 24.77 €/share. This move is part of the company’s Flexible Share Remuneration Program for its active employees in Spain, indicating a strategic effort to enhance shareholder value and employee compensation.

Endesa S.A. Launches Share Repurchase Program

Endesa S.A. has announced a share repurchase program approved by its Board of Directors, with a maximum budget of 2,000 million euros, to be executed in tranches until 2027. The first tranche, starting March 28, 2025, aims to support its Flexible Share Compensation Program, while the second tranche, set to begin after April 29, 2025, intends to reduce the company’s share capital by amortizing acquired shares. Enel S.p.A., Endesa’s majority shareholder, will not participate in the repurchase, ensuring no market sale of its shares during the program’s execution.

Endesa S.A. Announces Ordinary General Shareholders’ Meeting

Endesa S.A. has announced the convening of its Ordinary General Shareholders’ Meeting to be held on April 29, 2025, in Madrid. Key agenda items include the approval of the annual accounts, management reports, and a proposal for dividend distribution for the fiscal year ended December 31, 2024. Additionally, the meeting will address the re-election of KPMG Auditores as the legal auditor, a share capital reduction by canceling repurchased shares, and the approval of a strategic incentive plan for 2025-2027.