We confirm our EUR 20 fair value estimate after no-moat Endesa released a strong earnings rebound in the second quarter and confirmed its 2024 guidance. The 2024 dividend yield of 6.7% reflects the undervaluation of the shares.
Increasing renewable capacity should improve the electricity margins.
The absence of an international footprint implies full exposure to the competitive renewables Spanish market and an adverse regulatory backdrop.
|
Metric
|
ELE
|
IBE
|
NTGY
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.06 | 13.13 | 10.92 |
Price/Book Value | 2.52 | 1.44 | 2.24 |
Price/Sales | 0.85 | 1.69 | 1.11 |
Price/Cash Flow | 5.33 | 7.69 | 19.10 |
|
Metric
|
ELE
|
IBE
|
NTGY
|
|---|---|---|---|
Quick Ratio | 0.63 | 0.60 | 1.09 |
Current Ratio | 0.85 | 0.77 | 1.22 |
Interest Coverage | 2.91 | 4.98 | 5.15 |
|
Metric
|
ELE
|
IBE
|
NTGY
|
|---|---|---|---|
Return on Assets (Normalized) | 2.06% | 4.79% | 7.22% |
Return on Equity (Normalized) | 12.02% | 14.40% | 28.92% |
Return on Invested Capital (Normalized) | 5.61% | 7.51% | 11.30% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| NextEra Energy Inc
NEE
| Zftgnvgndz | Jmzybv | $152.6 Bil | |||
| Southern Co
SO
| Gfnbxnbcg | Tqvsmp | $89.8 Bil | |||
| Duke Energy Corp
DUK
| Gvjprvfgm | Chmrkk | $83.4 Bil | |||
| National Grid PLC ADR
NGG
| Zhrqydvg | Zbhmk | $61.2 Bil | |||
| American Electric Power Co Inc
AEP
| Fllhvwpp | Qfhvm | $50.8 Bil | |||
| PG&E Corp
PCG
| Pkhmnyfg | Fnn | $47.2 Bil | |||
| Dominion Energy Inc
D
| Hmjglcsj | Dzpcf | $44.2 Bil | |||
| Public Service Enterprise Group Inc
PEG
| Mphgvgzqf | Vjwpv | $37.9 Bil | |||
| Exelon Corp
EXC
| Scwvfkcrt | Xvzdjwh | $36.8 Bil | |||
| Consolidated Edison Inc
ED
| Ddykqdtd | Jgnh | $33.4 Bil |
