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1. Company Snapshot

1.a. Company Description

Enea S.A., together with its subsidiaries, generates, transmits, distributes, and trades in electricity in Poland.It generates electricity from wind farms, and hydropower and biogas plants, as well as hard coal.The company sells electricity to 2.4 million customers, including individual consumers, and small and medium-sized companies, as well as large industrial plants.


It also produces and sells coal and heat; maintains and modernizes road lighting equipment; and provides transport, repair, and construction services.The company was formerly known as Energetyka Poznanska S.A. Enea S.A. was founded in 1904 and is headquartered in Poznan, Poland.

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1.b. Last Insights on ENA

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1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.82%)

6. Segments

Generation

Expected Growth: 4.83%

ENEAs 4.83% growth driven by increasing electricity demand, favorable regulatory environment, and successful implementation of cost reduction programs. Additionally, investments in renewable energy sources, such as wind and solar power, contribute to the growth. Furthermore, ENEAs focus on grid modernization and expansion into new markets also support the companys growth momentum.

Trade

Expected Growth: 4.83%

ENEAs 4.83% growth driven by increasing electricity demand, successful cost reduction initiatives, and strategic investments in renewable energy sources, particularly wind and solar power. Additionally, the company's focus on energy efficiency and grid modernization contributes to its growth momentum.

Distribution

Expected Growth: 4.83%

ENEAs 4.83% distribution growth is driven by increasing electricity sales, improved operational efficiency, and strategic cost management. Additionally, investments in renewable energy sources and grid modernization contribute to the growth. Furthermore, ENEAs diversified customer base and favorable regulatory environment also support the companys expansion.

Mining

Expected Growth: 3.63%

ENEAs mining segment growth of 3.63% is driven by increasing demand for coal in Poland, favorable government policies, and investments in modernization and efficiency improvements. Additionally, the company's focus on cost reduction and operational optimization has contributed to the growth.

Other

Expected Growth: 4.83%

ENEAs 4.83% growth driven by increasing electricity distribution volumes, favorable regulatory environment, and cost savings from operational efficiency improvements. Additionally, investments in renewable energy sources and grid modernization contribute to the company's growth momentum.

7. Detailed Products

Electricity Distribution

ENEAs electricity distribution segment is responsible for the distribution of electricity to households, businesses, and industries.

Renewable Energy

ENEAs renewable energy segment focuses on generating electricity from wind, solar, and biomass sources.

Heat and Cooling

ENEAs heat and cooling segment provides district heating and cooling services to urban areas.

Energy Trading

ENEAs energy trading segment engages in the wholesale trading of electricity, natural gas, and other energy commodities.

Engineering and Construction

ENEAs engineering and construction segment provides design, construction, and maintenance services for energy infrastructure projects.

8. ENEA S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ENEAs dominance in the energy sector and its diversified portfolio of services reduce the threat of substitutes.

Bargaining Power Of Customers

ENEAs strong market position and diversified customer base reduce the bargaining power of customers.

Bargaining Power Of Suppliers

ENEAs dependence on a few large suppliers for fuel and equipment gives them some bargaining power, but the company's size and market position mitigate this threat.

Threat Of New Entrants

High barriers to entry, including significant capital requirements and regulatory hurdles, reduce the threat of new entrants in the energy sector.

Intensity Of Rivalry

The energy sector is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.72%
Debt Cost 7.40%
Equity Weight 65.28%
Equity Cost 9.45%
WACC 8.74%
Leverage 53.19%

11. Quality Control: ENEA S.A. passed 2 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
REN

A-Score: 7.3/10

Value: 6.6

Growth: 4.7

Quality: 5.7

Yield: 8.1

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Unimot

A-Score: 6.7/10

Value: 8.4

Growth: 9.3

Quality: 3.0

Yield: 8.1

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
Telecom Plus

A-Score: 6.7/10

Value: 4.5

Growth: 7.7

Quality: 6.1

Yield: 8.1

Momentum: 5.5

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Enea

A-Score: 5.8/10

Value: 9.3

Growth: 5.8

Quality: 5.1

Yield: 1.9

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

Stock-Card
Redeia

A-Score: 5.5/10

Value: 4.1

Growth: 2.1

Quality: 5.2

Yield: 7.5

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

Stock-Card
Energa

A-Score: 4.5/10

Value: 7.9

Growth: 6.0

Quality: 1.7

Yield: 0.0

Momentum: 5.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.46$

Current Price

19.46$

Potential

-0.00%

Expected Cash-Flows