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ENCE Energia y Celulosa SA (ES:ENC)
BME:ENC
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ENCE Energia y Celulosa (ENC) AI Stock Analysis

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ES:ENC

ENCE Energia y Celulosa

(BME:ENC)

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Neutral 42 (OpenAI - Gpt-5.6Sol)
Rating:42Neutral
Price Target:
€2.00
▼(-22.18% Downside)
Action:Reiterated
Date:10/29/26
The score is held down primarily by weak financial performance—losses, higher leverage, and especially deeply negative free cash flow—followed by bearish technical positioning with the stock trading below key moving averages. Valuation is difficult to support given the negative P/E and lack of dividend yield data.
Positive Factors
Business diversification
Operating across cellulose pulp and renewable energy gives ENCE two distinct sources of revenue rather than reliance on one industrial activity. This diversification can help balance business exposure over time, although each segment remains influenced by its own market and operating conditions.
Negative Factors
Persistent losses
Current losses and negative operating profitability weaken ENCE’s ability to convert revenue into durable earnings. The stated volatility, including profitable periods followed by losses again in 2025 and TTM, also makes near-term earnings power less predictable and harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Business diversification
Operating across cellulose pulp and renewable energy gives ENCE two distinct sources of revenue rather than reliance on one industrial activity. This diversification can help balance business exposure over time, although each segment remains influenced by its own market and operating conditions.
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 primarily through (1) selling cellulose pulp and (2) selling renewable electricity and related energy services/attributes. 1) Cellulose (pulp) sales (core industrial revenue) - Product and customers: ENCE produces market pulp use...

ENCE Energia y Celulosa Financial Statement Overview

Summary
Financials are currently pressured: modest TTM revenue growth (+4.84%) but losses (net income -€39.3M and negative operating profit), elevated leverage (TTM debt €696.4M vs equity €467.9M), and the key weakness is cash generation with deeply negative TTM free cash flow (-€100.9M). Earnings and cash flows have been volatile across recent years, reducing predictability.
Income Statement
34
Negative
Balance Sheet
41
Neutral
Cash Flow
22
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue757.90M747.30M870.44M829.60M1.00B819.67M
Gross Profit36.91M118.12M477.09M403.81M612.64M412.83M
EBITDA85.00M-28.49M179.05M105.96M373.60M-70.98M
Net Income-39.30M-54.50M31.55M-24.72M247.22M-190.41M
Balance Sheet
Total Assets1.67B1.64B1.68B1.70B1.78B1.61B
Cash, Cash Equivalents and Short-Term Investments184.90M230.00M277.50M335.54M414.97M380.28M
Total Debt696.40M651.00M545.59M630.30M326.13M478.31M
Total Liabilities1.12B1.07B1.06B1.05B962.17M987.45M
Stockholders Equity467.90M477.20M525.57M534.06M700.89M512.66M
Cash Flow
Free Cash Flow-100.90M-42.40M1.74M-141.86M248.81M70.31M
Operating Cash Flow29.00M50.20M78.60M-46.13M303.68M141.29M
Investing Cash Flow-127.20M-96.90M-104.84M-96.03M-53.90M-65.35M
Financing Cash Flow31.90M100.00K-42.84M62.27M-216.83M-218.59M

ENCE Energia y Celulosa Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.57
Price Trends
50DMA
2.39
Negative
100DMA
2.42
Negative
200DMA
2.40
Negative
Market Momentum
MACD
-0.05
Negative
RSI
42.34
Neutral
STOCH
39.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ENC, the sentiment is Negative. The current price of 2.57 is above the 20-day moving average (MA) of 2.25, above the 50-day MA of 2.39, and above the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 39.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
€178.29M1,750.000.02%5.02%-7.35%-99.48%
54
Neutral
€2.04B10.4422.01%2.46%25.92%40.06%
51
Neutral
€11.20B30.977.63%2.75%7.62%-56.65%
45
Neutral
€477.01M39.255.53%6.37%-8.45%-73.52%
42
Neutral
€541.45M-8.59-13.53%4.91%-10.41%-3508.11%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:ENC
ENCE Energia y Celulosa
2.23
-0.42
-15.83%
ES:ANA
Acciona
205.00
13.90
7.27%
ES:ADX
Audax Renovables SA
1.05
-0.31
-22.53%
ES:IBG
Iberpapel Gestion
16.45
-2.71
-14.16%
ES:MCM
Miquel y Costas and Miquel
9.90
-0.86
-8.02%
ES:SLR
Solaria Energia y Medio Ambiente
15.41
0.41
2.73%
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: Oct 29, 2026