Capitalcube gives Enel SpA a score of 38.
Our analysis is based on comparing Enel SpA with the following peers – Iberdrola SA, Endesa S.A., Fortum Oyj, E.ON SE, CEZ as, EDP-Energias de Portugal SA and Terna S.p.A. (IBE1-DE, ENA-DE, FOT-DE, EOAN-DE, CEZ-DE, EDP-DE and TRN-IT).
Enel SpA has a fundamental score of 38 and has a relative valuation of UNDERVALUED.
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- With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.
- It’s current Price/Book of 0.99 is about median in its peer group.
- The market expects faster earnings growth from ENL-DE than from its peers and also a turnaround in its current ROE.
- ENL-DE has relatively low net profit margins while its asset efficiency is relatively high.
- Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
- ENL-DE‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
- The company’s median gross margin and relatively low pre-tax margin suggest high operating costs versus peers.
- While ENL-DE‘s revenues growth has been around the peer median in recent years, the market seems to see faster growth ahead and gives its shares a higher than peer median P/E ratio.
- The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
- ENL-DE seems to be constrained by the current level of debt.
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Leverage & Liquidity
ENL-DE is debt-constrained.
- With debt at a relatively high 49.79% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 47.39%), and interest coverage level of 2.19x, ENL-DE seems debt-constrained.
- All 7 peers for the company have an outstanding debt balance.
ENL-DE has moved to a relatively high leverage from an Some Capacity profile at the recent year-end.
- ENL-DE‘s interest coverage is its lowest relative to the last five years and compares to a high of 3.30x in 2016.
- Though its interest coverage decreased to 2.19x from 3.30x (in 2016), its peer median remained relatively stable during this period at 2.93x.
- Interest coverage fell 0.66 points relative to peers. It is also below the 2.50x coverage benchmark unlike the peer median.
- ENL-DE‘s debt-EV is its lowest relative to the last five years and compares to a high of 66.15% in 2012.
- The decrease in its debt-EV to 49.79% from 52.09% (in 2016) was also accompanied by a decrease in its peer median during this period to 47.39% from 51.14%.
- Relative to peers, debt-EV rose 1.45 percentage points.
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Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|EDP-Energias de Portugal SA||60.93||1.1||1.81||10.57|
|Best In Class||22.4||3.49||9.88||47.64|
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Enel SpA operates as an holding company, which engages in the distribution of electricity and gas. It operates through the following segments: Italy, Iberian Peninsula, Latin America, Eastern Europe, Renewable Energy, and Others. The company was founded on December 6, 1962 and is headquartered in Rome, Italy.
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