tiprankstipranks
ENCE Energia y Celulosa SA (ES:ENC)
BME:ENC
Want to see ES:ENC full AI Analyst Report?

ENCE Energia y Celulosa (ENC) AI Stock Analysis

31 Followers

Top Page

ES:ENC

ENCE Energia y Celulosa

(BME:ENC)

Select Model
Select Model
Select Model
Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
€2.50
▼(-2.72% Downside)
Action:Reiterated
Date:07/23/26
Overall score is held back primarily by weak financial performance: current losses, rising leverage, and sharply negative free cash flow outweigh the strong recent price momentum. Technicals provide support (price above key moving averages), but overbought RSI/Stoch temper that strength. Valuation remains challenging due to the negative P/E and lack of dividend data.
Positive Factors
Business diversification
Two operating platforms diversify earnings across pulp and renewable power. This broadens the asset base and creates exposure to both essential paper inputs and Spain’s biomass energy infrastructure, although each remains cyclical or regulated.
Negative Factors
Weak profitability
Current losses weaken internal funding, reduce resilience and make earnings recovery dependent on improved pulp pricing, volumes, energy returns or cost control. Persistently negative operating profit would limit the durability of the business model’s returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Business diversification
Two operating platforms diversify earnings across pulp and renewable power. This broadens the asset base and creates exposure to both essential paper inputs and Spain’s biomass energy infrastructure, although each remains cyclical or regulated.
Read all positive factors

ENCE Energia y Celulosa (ENC) vs. iShares MSCI Spain ETF (EWP)

ENCE Energia y Celulosa Business Overview & Revenue Model

Company Description
ENCE Energía y Celulosa, S.A., along with its subsidiaries, is actively engaged in the production and sale of eucalyptus pulp and renewable power generation. Its commercial activities extend across a wide international footprint, with a strong pre...
How the Company Makes Money
ENCE makes money mainly through two business lines: 1) Cellulose (pulp) business - Revenue stream: Sale of industrial wood pulp (cellulosic pulp) to customers that use it as an input for downstream products (e.g., tissue and other paper-based pro...

ENCE Energia y Celulosa Financial Statement Overview

Summary
Financial quality is pressured by weak profitability and cash generation despite strong TTM revenue growth. The income statement shows negative gross/operating profit and a net loss (≈-10% net margin) with high cyclicality since the 2022 peak. Balance sheet risk has increased as leverage rose (debt-to-equity ≈1.53x TTM). Cash flow is the biggest concern, with low operating cash flow (~€11m) and deeply negative free cash flow (~-€117m), reducing flexibility.
Income Statement
34
Negative
Balance Sheet
43
Neutral
Cash Flow
26
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue722.91M747.30M870.44M829.60M1.00B819.67M
Gross Profit-108.44M118.12M477.09M403.81M612.64M412.83M
EBITDA49.83M-28.49M179.05M105.96M373.60M-70.98M
Net Income-64.55M-54.50M31.55M-24.72M247.22M-190.41M
Balance Sheet
Total Assets1.64B1.64B1.68B1.70B1.78B1.61B
Cash, Cash Equivalents and Short-Term Investments183.74M230.00M277.50M335.54M414.97M380.28M
Total Debt703.61M651.00M545.59M630.30M326.13M478.31M
Total Liabilities1.10B1.07B1.06B1.05B962.17M987.45M
Stockholders Equity458.32M477.20M525.57M534.06M700.89M512.66M
Cash Flow
Free Cash Flow-117.13M-42.40M1.74M-141.86M248.81M70.31M
Operating Cash Flow11.01M50.20M78.60M-46.13M303.68M141.29M
Investing Cash Flow-137.67M-96.90M-104.84M-96.03M-53.90M-65.35M
Financing Cash Flow13.02M100.00K-42.84M62.27M-216.83M-218.59M

ENCE Energia y Celulosa Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.57
Price Trends
50DMA
2.50
Positive
100DMA
2.46
Positive
200DMA
2.40
Positive
Market Momentum
MACD
<0.01
Positive
RSI
49.43
Neutral
STOCH
31.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ENC, the sentiment is Positive. The current price of 2.57 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.50, and above the 200-day MA of 2.40, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 31.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ENC.

ENCE Energia y Celulosa Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
€2.23B12.3122.94%2.46%36.20%42.26%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
€193.46M1,898.940.02%4.63%-7.35%-99.48%
51
Neutral
€11.10B30.697.63%2.78%7.62%-56.65%
49
Neutral
€614.16M-9.75-13.53%4.91%-10.41%-3508.11%
45
Neutral
€531.42M30.847.94%5.72%-11.16%-69.72%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:ENC
ENCE Energia y Celulosa
2.53
-0.30
-10.46%
ES:ANA
Acciona
203.20
36.76
22.09%
ES:ADX
Audax Renovables SA
1.17
-0.18
-13.06%
ES:IBG
Iberpapel Gestion
17.85
-1.02
-5.43%
ES:MCM
Miquel y Costas and Miquel
13.15
-0.75
-5.38%
ES:SLR
Solaria Energia y Medio Ambiente
16.82
4.08
32.03%
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.Date of analysis: Jul 23, 2026