Engie ENGI.PA
Engie is a diversified French utility operating in energy generation, networks, and energy services for clients. Engie shows acceptable financial health (6.7) but with high leverage (ND/EBITDA 4.16) and negative free cash flow conversion (-0.69), which weighs on its quality (4.0). Its valuation is reasonable (P/E 14.32) and the dividend is attractive (5.78% net), but revenue growth is negative (-3.60%).
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.
Engie is a diversified French utility operating in energy generation, networks, and energy services for clients. Engie shows acceptable financial health (6.7) but with high leverage (ND/EBITDA 4.16) and negative free cash flow conversion (-0.69), which weighs on its quality (4.0). Its valuation is reasonable (P/E 14.32) and the dividend is attractive (5.78% net), but revenue growth is negative (-3.60%).
Score by category
| Category | Score |
|---|---|
| Financial health | 6.1 |
| Quality / Moat | 4.0 |
| Valuation | 5.5 |
| Growth | 4.6 |
| Dividend | 7.4 |
| Momentum | 7.7 |
| Risk & Context | 7.0 |
OVERALL SCORE: 6.1/10
Context and risks
Engie is a capital-intensive European utility with Net Debt/EBITDA of 4.16 and Debt/Equity of 143.77. The ECB is in a hiking cycle (25bp in June, another likely in September), which makes refinancing its debt more expensive. Additionally, rising 10-year yields reduce the present value of its future cash flows, a typical duration risk for utilities.
News considered in the analysis
- Engie (ENXTPA:ENGI) Stock Trades At A Discount To Fair Value — Análisis de valoración genérico de Simply Wall St., sin información nueva sobre la empresa.
- Volkswagen exits Euro Stoxx 50 as index removal adds to pressure on troubled firm — Noticia sobre Volkswagen, no afecta a Engie.
- Nokia Gets Back Into Europe’s VIP Room — Noticia sobre Nokia, sin impacto para Engie.
- NOK Stock Gains After-Hours — Nokia Oyj Rejoins Europe's Benchmark Stoxx 50 Index — Noticia sobre Nokia, sin impacto para Engie.
- Ford names new president of subsidiary Ford Energy — Noticia sobre Ford, sin impacto para Engie.
Verdict: Hold; the dividend and valuation offer support, but high leverage and weak cash generation limit the appeal.
Main risk: High leverage (Net Debt/EBITDA of 4.16) combined with an ECB rate-hiking cycle makes refinancing its debt more expensive and pressures its long-duration utility valuation.
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