ENCE Energía y Celulosa ENC.MC
SpainBasic Materials · Paper & Paper ProductsBolsa de Madrid (BME) · EUR
3.26 EUR (+43.8%)
8 analysts
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ENCE Energía y Celulosa is a Spanish company dedicated to the production of eucalyptus pulp and renewable energy generation from biomass, operating in the basic materials sector.
Listed on Bolsa de Madrid (BME) · Symbol ENC.MC · BME: ENC · Currency EUR
Key points
from its scores- ✓Favourable backdrop7.0
- ✕Little or no dividend1.2
- ✕Demanding valuation1.3
- ✕Poor share-price trend1.4
AI analysis
bottom line, main risk, context and newsThe combination of extreme leverage, lack of profitability, and demanding valuation (EV/EBITDA 47.22) makes it a high-risk investment with no visibility of improvement.
ENCE presents a critical financial health with net debt multiplying its EBITDA by 21.77, a very low operating margin, and negative cash generation, placing it in a high financial risk position.
The main risk is its unsustainable debt level (Net Debt/EBITDA of 21.77), which, in a rising rate environment, could compromise its financial viability in the medium term.
Context and risks
ENCE operates in Spain, a country with an elevated governance risk profile, adding regulatory and political uncertainty. Furthermore, its high leverage (Net Debt/EBITDA of 21.77) makes it vulnerable to a rising interest rate environment in Europe, making its refinancing more expensive.
Is ENCE Energía y Celulosa stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 373% above the Basic Materials median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 47.2 | 10.0 | +373% |
| Price / book | 1.2 | 2.3 | −47% |
| Price / sales | 0.7 | 2.2 | −66% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 1.3 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 3.26 EUR, +43.8% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 2.1 (sector 5.1), Growth 5.1 (sector 6.8).
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- Forward P/E
- −339.7
- EV / EBITDA
- 47.2
- Price / book
- 1.2
- Price / sales
- 0.7
- PEG
- 2.06
- Market cap
- 548.7M EUR
- Enterprise value
- 1.2B EUR
Profitability
- ROE
- −12.8%
- ROA
- −1.8%
- ROIC (approx.)
- 3.5%
- Gross margin
- 40.2%
- Operating margin
- 5.5%
- Net margin
- −8.8%
- Free cash flow
- −112.7M EUR
- FCF yield
- −20.5%
- Cash conversion
- −455%
Solvency
- Total debt
- 703.9M EUR
- Net debt
- 538.7M EUR
- Cash
- 165.2M EUR
- EBITDA
- 24.7M EUR
- Net debt / EBITDA
- 21.77
- Debt / equity
- 130.61
- Current ratio
- 0.94
- Quick ratio
- 0.57
Growth
- Revenue growth
- +3.1%
- EPS (TTM)
- −0.26 EUR
- EPS (forward)
- −0.01 EUR
Dividend
- Dividend yield
- 0.0%
- Payout
- 107.7%
Risk and market
- Beta
- 0.27
- Analyst consensus
- Buy (8)
- Target price
- 3.26 EUR
- 52-week range
- 2.14 – 2.82
Recent news
All ENC.MC news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about ENCE Energía y Celulosa
Is ENCE Energía y Celulosa stock cheap or expensive?
On EV / EBITDA, it trades 373% above the Basic Materials median. Valuation score: 1.3 out of 10 (median for Basic Materials: 5.8). Average analyst target: 3.26 EUR, +43.8% versus the price. This is not investment advice.
What score does ENCE Energía y Celulosa get on MeridIAn Screener?
It scores 2.7 out of 10, rank 2,100 of 2,130 (better than 1% of the companies analysed). Its strongest category is Risk & Context (7.0) and its weakest, Dividend (1.2). Analysis of 08/10/2026.
How much is ENCE Energía y Celulosa worth on the stock market?
Its market capitalisation is 548.7M EUR and its enterprise value, debt included, is 1.2B EUR.
How much debt does ENCE Energía y Celulosa have?
Its net debt (debt minus cash) is 538.7M EUR. That is 21.77 times its EBITDA; the Basic Materials median is 1.41.
Does ENCE Energía y Celulosa pay a dividend?
It pays no dividend, or almost none.
How has ENCE Energía y Celulosa stock performed over the last year?
It has fallen 18.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 2.14 and 2.82 EUR. Past performance does not guarantee future results.
What do analysts think of ENCE Energía y Celulosa?
8 analysts cover it; their average recommendation is “Buy” and their average target is 3.26 EUR (+43.8% versus the price). It is an estimate, not market data.