Enel ENEL.MI
Enel is an Italian multinational energy company operating in the generation, distribution, and sale of electricity and gas, with a growing focus on renewable energy and a strong presence in Europe and Latin America. Enel shows acceptable financial health (6.92) with 31.8% earnings growth, but its high debt (ND/EBITDA 3.33), negative free cash flow conversion, and 115% payout ratio create balance sheet tensions that the market prices with a P/E of 21.1.
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.
Enel is an Italian multinational energy company operating in the generation, distribution, and sale of electricity and gas, with a growing focus on renewable energy and a strong presence in Europe and Latin America. Enel shows acceptable financial health (6.92) with 31.8% earnings growth, but its high debt (ND/EBITDA 3.33), negative free cash flow conversion, and 115% payout ratio create balance sheet tensions that the market prices with a P/E of 21.1.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.3 |
| Quality / Moat | 4.8 |
| Valuation | 4.7 |
| Growth | 7.2 |
| Dividend | 4.8 |
| Momentum | 5.9 |
| Risk & Context | 4.0 |
OVERALL SCORE: 5.2/10
Context and risks
Italy presents elevated governance risk, with a history of political intervention in strategic companies and weak minority protection. Additionally, Enel has exposure to Latin American markets with regulatory and currency risk, adding uncertainty to profit repatriation.
News considered in the analysis
- Enel (BIT:ENEL) Stock Looks Reasonable After Its 82% Three Year Run — Análisis retrospectivo sin información nueva sobre valoración o perspectivas.
- ENLAY vs. CNP: Which Stock Should Value Investors Buy Now? — Comparativa genérica de valoración sin datos concretos que alteren la tesis de inversión.
- Is Enel (ENLAY) Stock Undervalued Right Now? — Artículo de opinión sin información nueva.
- Excelsior Energy Capital completes sale of Faraday and Skyhawk solar plants to Enel — Adquisición de dos plantas solares en EE. UU. que refuerza la capacidad renovable y la presencia en el mercado estadounidense, en línea con su estrategia.
- Goldman Sachs refreshes conviction lists on both sides of the Atlantic — Sin detalle específico sobre Enel; no se puede atribuir un impacto concreto.
Verdict: Hold; the 5.22% dividend yield is attractive, but payout sustainability and governance risk in Italy limit upside potential.
Main risk: The main risk is the combination of high debt (ND/EBITDA 3.33) with a 115% payout ratio and negative free cash flow conversion, which could force a dividend cut or capital increase if ECB rates keep rising.
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