Endesa, S.A.'s shares display attractive technical aspects to anticipate a comeback of the underlying trend.
Summary
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company's MSCI ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● This company will be of major interest to investors in search of a high dividend stock.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
● The group shows a rather high level of debt in proportion to its EBITDA.
● The company appears highly valued given the size of its balance sheet.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
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Endesa, S.A. is one of Spain's leading electricity producers and distributors. The group's activity is organized around 3 areas:
- production and sales of electricity: 59.8 TWh produced in 2024 and 74.4 TWh sold to 10.2 million customers;
- electricity transmission: owning, at the end of 2024, a network of 320,329 km of electric lines;
- distribution of gas (No. 3 in Spain): 62.2 TWh of gas sold to 1.8 million customers.
Net sales are distributed as follows: Spain (87.3%), Portugal (6.4%), France (3.7%) and Germany (2.6%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.