We confirm our EUR 7.5 fair value estimate after Enel released first-quarter results above FactSet consensus at the EBITDA level thanks to strong performance of renewables and supply businesses. It confirmed its 2024 guidance. With current P/E and dividend yield of 9.8 and 5.6%, respectively, the shares are undervalued.
The disposal plan and exit of noncore countries could help to reduce the holding discount.
Regulation in Spain is very hostile to utilities.
|
Metric
|
ENEL
|
EOAN
|
IBE
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.84 | 9.11 | 13.28 |
Price/Book Value | 2.15 | 2.44 | 1.46 |
Price/Sales | 0.78 | 0.37 | 1.71 |
Price/Cash Flow | 4.72 | 33.27 | 7.78 |
|
Metric
|
ENEL
|
EOAN
|
IBE
|
|---|---|---|---|
Quick Ratio | 0.64 | 0.52 | 0.60 |
Current Ratio | 0.89 | 0.81 | 0.77 |
Interest Coverage | 4.77 | 0.88 | 4.98 |
|
Metric
|
ENEL
|
EOAN
|
IBE
|
|---|---|---|---|
Return on Assets (Normalized) | 3.34% | 2.55% | 4.79% |
Return on Equity (Normalized) | 27.85% | 19.94% | 14.40% |
Return on Invested Capital (Normalized) | 7.21% | 7.33% | 7.51% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
IBDSF
| Iberdrola SA | — | Gwvx | $82.8 Bil | |
IBDRY
| Iberdrola SA ADR | T | Lfcc | $82.8 Bil | |
ESOCF
| Enel SpA | Hxgfnlwl | Szyqz | $73.6 Bil | |
ENLAY
| Enel SpA ADR | Fzvcmswc | Ycncl | $73.6 Bil | |
SRE
| Sempra | Swnmxcsp | Ffkfwl | $48.8 Bil | |
ENGIY
| Engie SA ADR | — | Syj | $41.3 Bil | |
ENGQF
| Engie SA | — | Qkxkk | $41.3 Bil | |
EONGY
| E.ON SE ADR | Dbrhjnyt | Llqzt | $36.8 Bil | |
ENAKF
| E.ON SE | — | Lybs | $36.8 Bil | |
AES
| The AES Corp | Dggszncs | Tczd | $14.4 Bil |
