Endesa ELE.MC
Endesa is a Spanish electric utility operating in the generation, distribution, and commercialization of electricity and gas, with a regulated and market-based business model. Endesa presents solid financial health (7.54) with a 29.05% ROE and 67.8% earnings growth, although its valuation (PER 16.64) and dividend (3.74%) offer a balanced profile. The rise in ECB interest rates is a factor to watch, but its impact is limited given its moderate leverage.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Endesa is a Spanish electric utility operating in the generation, distribution, and commercialization of electricity and gas, with a regulated and market-based business model. Endesa presents solid financial health (7.54) with a 29.05% ROE and 67.8% earnings growth, although its valuation (PER 16.64) and dividend (3.74%) offer a balanced profile. The rise in ECB interest rates is a factor to watch, but its impact is limited given its moderate leverage.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.2 |
| Quality / Moat | 6.9 |
| Valuation | 6.0 |
| Growth | 7.0 |
| Dividend | 6.9 |
| Momentum | 9.3 |
| Risk & Context | 6.8 |
OVERALL SCORE: 6.9/10
Context and risks
The rise in 10-year Treasury yields and the ECB's rate hike increase Endesa's debt financing costs (Net Debt/EBITDA of 1.86). However, as a regulated utility with stable cash flows, the impact is moderate and does not compromise its financial health.
News considered in the analysis
- Energy & Utilities Roundup: Market Talk — Artículo de opinión y resumen de mercado sin información específica nueva sobre Endesa.
- Endesa SA (ELEZF) (Q2 2026) Earnings Call Highlights: Strong Financial Performance Amid Market ... — La compañía reporta un sólido desempeño financiero en el segundo trimestre, lo que refuerza la confianza en el negocio, aunque el mercado ya lo esperaba en gran medida.
- How The Endesa (BME:ELE) Investment Story Is Shifting As Analyst Targets Reassess Fair Value — Los analistas están revisando sus precios objetivo, lo que sugiere una ligera mejora en la percepción del valor, pero sin un catalizador claro.
- Sonnedix signs tailor-made financial product with Endesa — Firma de un acuerdo financiero a medida con Sonnedix para un proyecto específico, lo que podría generar ingresos futuros y mejorar la posición en energías renovables.
Verdict: Hold Endesa, taking advantage of its solid balance sheet and attractive dividend, but without expecting significant short-term appreciation due to the rising rate environment.
Main risk: The main risk is the rise in ECB interest rates, which could increase Endesa's debt financing costs and compress its valuation, although its moderate leverage (Net Debt/EBITDA of 1.86) and regulated business mitigate the impact.
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