Enagas SA (ENG) AI Stock Analysis

• Market Cap: €3.63B
• Dividend Yield: 7.02%
• Average Volume (3M): 810.20K
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.36
• Revenue Growth: 5.35%
• EPS Growth: N/A
• Country: ES
• Employees: 1,395
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.29
• Shares Outstanding: 261,990,080
• 10 Day Avg. Volume: 743,396
• 30 Day Avg. Volume: 810,196
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €14.68
• Price Target Upside: 3.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €13.50 ▼(-5.20% Downside)

Enagas SA's overall stock score is driven by a cautious financial position with strong gross profit margins but high leverage and cash flow concerns. Technical analysis indicates mixed signals with potential bearish momentum. The stock's valuation is relatively high, but the attractive dividend yield offers some investor appeal.

Enagas SA Business Overview & Revenue Model

Company Description

Enagás, S.A. develops, operates, and maintains gas infrastructures in Spain and internationally. It operates through Gas Transmission, Regasification, and Storage of Gas segments. The company provides gas transmission services through primary and secondary transmission pipelines; and natural gas regasification services, as well as operates underground storage facilities. It is also involved in the operation and technical management of the basic network and secondary transportation network for natural gas. In addition, the company engages in the financial management activities; development of industrial projects and activities relating to LNG terminals, and hydrogen production and transport infrastructures; development and implementation of facilities for the supply of natural gas as fuel for vehicles, including its design, construction, and maintenance; and provision of commercial services for the purpose of enhancing the daily operational management of gas shippers. Further, it is involved in the development of projects to promote the role of renewable gases in the energy transition; and production of solar energy. Enagás, S.A. was incorporated in 1972 and is headquartered in Madrid, Spain.

How the Company Makes Money

Enagas generates revenue primarily through regulated activities related to the transportation and storage of natural gas. The company's core revenue streams include tariffs charged for the use of its gas infrastructure, which are set by regulatory authorities. Additionally, Enagas earns income from its regasification plants where liquefied natural gas (LNG) is converted back to gas for distribution. The company also benefits from strategic partnerships and long-term contracts with various gas suppliers and utilities, enhancing its revenue stability. Furthermore, Enagas is involved in international projects and collaborations that expand its market reach and diversify its revenue sources.

Enagas SA Financial Statement Overview

Summary

Enagas SA exhibits a stable yet cautious financial position. Strong gross profit margin at 77.5% is offset by challenges such as net income volatility and high leverage with a debt-to-equity ratio of 1.31. Cash flow concerns, particularly a -29.7% decline in free cash flow growth, suggest potential liquidity risks.

Income Statement

Enagas SA shows a mixed performance in its income statement. The TTM gross profit margin is strong at 77.5%, indicating efficient cost management. However, the net profit margin is lower at 14.6%, reflecting challenges in converting revenue into profit. Revenue growth is modest at 3.1% TTM, showing some recovery after previous declines. EBIT and EBITDA margins are healthy, but the volatility in net income suggests potential risks.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.31 TTM, indicating significant leverage which could pose financial risks. Return on equity is modest at 5.7% TTM, suggesting moderate profitability from shareholders' investments. The equity ratio is not explicitly provided, but the company's leverage and asset management need careful monitoring.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -29.7% TTM, highlighting potential liquidity issues. The operating cash flow to net income ratio is 0.36, indicating a lower conversion of income into cash. The free cash flow to net income ratio is 0.66, suggesting some challenges in maintaining cash reserves relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	920.51M	905.55M	907.57M	957.10M	975.69M	1.05B
Gross Profit	713.37M	846.18M	851.63M	905.45M	926.63M	1.00B
EBITDA	987.06M	94.27M	810.84M	744.40M	702.86M	800.60M
Net Income	134.55M	-299.31M	342.53M	375.77M	403.83M	444.00M
Balance Sheet
Total Assets	7.06B	7.50B	8.51B	9.40B	9.87B	9.01B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.42B	857.55M	1.39B	1.46B	868.69M
Total Debt	2.94B	3.31B	3.81B	4.43B	5.26B	4.81B
Total Liabilities	4.80B	5.10B	5.51B	6.18B	6.77B	6.00B
Stockholders Equity	2.24B	2.38B	2.98B	3.20B	3.09B	2.99B
Cash Flow
Free Cash Flow	248.72M	357.10M	411.87M	635.25M	510.08M	550.93M
Operating Cash Flow	377.28M	454.99M	568.84M	726.03M	579.93M	609.53M
Investing Cash Flow	983.95M	930.98M	-81.83M	669.84M	100.58M	-741.97M
Financing Cash Flow	-1.48B	-962.57M	-990.16M	-1.52B	-102.95M	-102.37M

Enagas SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.24
• 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:ENG, the sentiment is Positive. The current price of 14.24 is above the 20-day moving average (MA) of 13.96, above the 50-day MA of 13.52, and above the 200-day MA of 13.07, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ENG.

Enagas SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANE	80 Outperform	€8.05B	10.76	13.06%	1.80%	2.05%	307.60%
NTGY	71 Outperform	€23.34B	12.79	22.84%	6.66%	2.66%	1.26%
ELE	69 Neutral	€33.74B	15.28	26.20%	4.12%	-2.54%	103.14%
IBE	67 Neutral	€117.50B	20.62	11.50%	3.03%	0.50%	-19.06%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RED	64 Neutral	€8.40B	22.86	10.14%	3.98%	-23.15%	-39.13%
ENG	55 Neutral	€3.63B	38.65	3.85%	7.02%	5.35%	―