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1. Company Snapshot

1.a. Company Description

Enel SpA operates as an integrated electricity and gas operator worldwide.The company generates, transmits, distributes, purchases, transports, and sells electricity; transports and markets natural gas; supplies LNG; designs, develops, constructs, operates, manages, and maintains generation plants and distribution grids; and designs, constructs, and operates merchant lines.It is also involved in various activities, such as energy and infrastructure engineering; research and development in sciences and engineering; the cogeneration of electricity and heat; the construction and management of manages port infrastructure; product, plant, and equipment certification; mining; finance; energy products marketing; trading; and fuel trading and logistics operations.


In addition, the company engages in construction and management of LNG regasification infrastructure; desalinization and water supply; electricity system monitoring; and optical fiber network operation activities.Further, it provides testing, inspection, and certification; engineering and consulting; legal; metering, remote control, and connectivity through power line communication; business consulting, administrative, management consulting, and corporate planning; civil, mechanical, and electrical engineering; personnel administration, information technology, real estate, and business; electronic plant installation, maintenance, and repairing; and security services.Additionally, the company offers water systems; public lighting systems and services; electric mobility; and environmental studies services.


It operates renewable, wind, thermal, hydroelectric, nuclear, photovoltaic, and geothermal power plants.The company was founded in 1962 and is headquartered in Rome, Italy.

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1.b. Last Insights on ENEL

Enel SpA's recent performance was driven by Deutsche Bank's upgrade of its market relative view to positive for the sector, citing European utilities trade at an exceptional discount. Additionally, the sustainability-linked bond market, which Enel participates in, is facing a decline, but this may present opportunities for the company to capitalize on. Despite this, the company's price target was lowered to EUR 6.80 from EUR 7.

1.c. Company Highlights

2. Enel's 9M 2025 Results: Steady EBITDA Growth and Improved Net Income

Enel's 9-month 2025 results showcased a steady growth in EBITDA, reaching EUR 17.3 billion, and a 5% year-on-year increase in net income to EUR 5.7 billion. The company's focus on European countries, now representing 75% of group EBITDA and 90% of net income, led to an improved EBITDA conversion into net income. Earnings per share (EPS) came in at EUR 0.1824, slightly below estimates of EUR 0.2026. The company's EBITDA guidance trend is expected to be flat in Europe, with Italy almost flat year-on-year and Spain growing around 5% year-on-year.

Publication Date: Nov -15

📋 Highlights
  • EBITDA & Net Income Growth: EBITDA reached EUR 17.3B, net income EUR 5.7B (+5% YoY), with 30% EBITDA-to-net income conversion expected by 2025.
  • Share Buyback Progress: EUR 6B program on track, 63% of EUR 1B tranche (launched in August) executed, maintaining net debt at 2.5x.
  • Efficiency Program Success: 80% of 2027 target achieved, driving structural profitability improvements and cost-free capital allocation.
  • Grid & Storage Investments: EUR 4.7B deployed in grid projects (+14%), securing 70% of Italian MACSE battery auction capacity (6.7 GWh total).
  • CapEx & Financial Leverage: EUR 8B CapEx funded by 64% FFO cash conversion, net debt at EUR 57.5B with FFO/net debt ratio of 25%.

Financial Performance

The company's financial performance was characterized by a stable net debt ratio of 2.5x despite the execution of the share buybacks. The share buyback program, with a total amount of EUR 6 billion, is on track, with EUR 1 billion tranche launched in August and 63% of this amount purchased. The group's profitability continues to be strong, with net income expansion funded on a structural improvement of asset portfolio profitability.

Investment Cycle and Capital Allocation

The new investment cycle, started in 2023, is focused on countries and businesses with secure and visible returns, delivering an improved EBITDA contribution. The company deployed EUR 4.7 billion in grid investments, with an increase of 14%, and achieved a remarkable result in the MACSE auction in Italy, awarding almost 70% of the total battery storage capacity auctioned. The company's CapEx plan will not be reduced, even with grants decreasing.

Valuation and Outlook

With a P/E Ratio of 15.06 and an EV/EBITDA of 6.7, the market seems to have priced in a moderate growth outlook for Enel. The company's ROE stands at 17.96%, indicating a relatively strong return on equity. Analysts estimate next year's revenue growth at 0.7%. The company's guidance for the year remains unchanged, with ordinary EBITDA aligned to the guidance and net income slightly above the top of the guidance range.

Segment Performance

In Spain, the regulatory framework is expected to be finalized by year-end, but Endesa believes the proposed changes do not adequately incentivize investments needed for the energy transition. In Brazil, the concession renewal process is ongoing, with three different processes having different timings, but the company expects a full extension of its concession. The data centers business is a growth opportunity, with a dedicated organization working on a pipeline of industrial sites.

3. NewsRoom

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AM Best Affirms Credit Ratings of Enel Reinsurance - Compagnia di Riassicurazione S.p.A.

Dec -04

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Enel SpA (ENLAY) Q3 2025 Earnings Call Highlights: Strong Financial Performance and Strategic ...

Nov -13

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South Africa Power Market Outlook Report 2025-2035: Market Trends, Regulations, and Competitive Landscape Featuring Engie, Enel, Eskom, SOC, and Department of Water Affairs and Forestry

Nov -13

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How Investors Are Reacting To Enel (BIT:ENEL) Securing US$4.5 Billion in Yankee Bonds

Oct -08

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Gulf Pacific Power Expands Operating Wind Portfolio

Oct -01

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Enel (ENLAY) Upgraded to Strong Buy: What Does It Mean for the Stock?

Sep -22

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Gridspertise widens its digital real-time portfolio with the acquisition of Energyworx

Sep -19

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Is Atmos Energy (ATO) Stock Outpacing Its Utilities Peers This Year?

Sep -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.31%)

6. Segments

End-User Markets

Expected Growth: 4.5%

Increasing electrification of transport and heating, growth in renewable energy, and rising demand for energy efficiency solutions drive growth in Enel’s end-user markets, comprising residential, and industrial customers.

Enel Grids

Expected Growth: 8.4%

Enel Grids' growth is driven by increasing demand for advanced energy solutions and grid management services, particularly in the renewable energy sector, as well as the need for efficient and sustainable energy management.

Thermal Generation and Trading

Expected Growth: 4.5%

Enel SpA's thermal power plants optimize supply and demand, maximizing profits through wholesale electricity trade, driven by increasing energy demands and efficient plant operations.

Enel Green Power

Expected Growth: 10.2%

Growing demand for renewable energy sources, increasing adoption of wind and solar energy, and government incentives and policies driving the growth of Enel Green Power’s business.

Holding and Services

Expected Growth: 5.5%

Enel SpA's Holding segment benefits from a diversified portfolio of subsidiaries, while the Services segment drives growth through energy efficiency solutions and infrastructure services, leveraging Enel's expertise in sustainable energy.

Eliminations and Adjustments

Expected Growth: 5.3%

Enel SpA's elimination and adjustments enable accurate financial reporting, driving growth through enhanced transparency and compliance, bolstered by increasing adoption of IFRS accounting standards.

7. Detailed Products

Electricity

Enel SpA generates and distributes electricity to residential, commercial, and industrial customers.

Natural Gas

Enel SpA supplies natural gas to customers for heating, cooking, and power generation.

Renewable Energy

Enel SpA develops and operates renewable energy sources such as wind, solar, hydro, and geothermal power.

Energy Efficiency

Enel SpA offers energy-efficient solutions and services to help customers reduce energy consumption.

E-Mobility

Enel SpA provides electric vehicle charging infrastructure and services for a sustainable transportation system.

Smart Grids

Enel SpA develops and operates advanced grid management systems for efficient and reliable energy distribution.

Energy Storage

Enel SpA offers energy storage solutions to optimize energy usage and reduce peak demand.

8. Enel SpA's Porter Forces

Forces Ranking

Threat Of Substitutes

Enel SpA operates in the energy sector, where substitutes are limited. However, the increasing adoption of renewable energy sources and energy-efficient technologies may pose a moderate threat to the company's operations.

Bargaining Power Of Customers

Enel SpA's customers are largely individual households and small businesses, which have limited bargaining power. The company's large customer base and diversified revenue streams also reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

Enel SpA relies on a diverse range of suppliers for fuel, equipment, and services. While the company has some bargaining power due to its large scale, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The energy sector is characterized by high barriers to entry, including significant capital requirements, regulatory hurdles, and technical expertise. This limits the threat of new entrants to Enel SpA's operations.

Intensity Of Rivalry

The energy sector is highly competitive, with many established players competing for market share. Enel SpA faces intense rivalry from other major energy companies, which may lead to pricing pressures and competitive bidding for contracts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.78%
Debt Cost 6.88%
Equity Weight 24.22%
Equity Cost 8.68%
WACC 7.31%
Leverage 312.90%

11. Quality Control: Enel SpA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ENGIE

A-Score: 7.2/10

Value: 7.0

Growth: 5.6

Quality: 3.6

Yield: 10.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Enel

A-Score: 6.6/10

Value: 5.4

Growth: 5.1

Quality: 4.8

Yield: 8.1

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

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E.ON

A-Score: 6.6/10

Value: 7.3

Growth: 4.8

Quality: 3.2

Yield: 6.9

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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RWE

A-Score: 6.6/10

Value: 8.1

Growth: 5.4

Quality: 3.8

Yield: 5.0

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

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Iberdrola

A-Score: 6.2/10

Value: 3.7

Growth: 5.4

Quality: 4.6

Yield: 6.2

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
SSE

A-Score: 5.8/10

Value: 5.9

Growth: 4.9

Quality: 4.5

Yield: 6.9

Momentum: 3.5

Volatility: 9.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.77$

Current Price

8.77$

Potential

-0.00%

Expected Cash-Flows