We confirm our EUR 20 fair value estimate after no-moat Endesa released first-quarter results in line with FactSet consensus at the EBITDA level and confirmed its 2024 guidance. The current dividend yield of 5.7% reflects the undervaluation of the shares.
Increasing renewable capacity should improve the electricity margins.
The absence of an international footprint implies full exposure to the competitive renewables Spanish market and an adverse regulatory backdrop.
|
Metric
|
ELE
|
NTGY
|
IBE
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.35 | 12.04 | 13.24 |
Price/Book Value | 2.75 | 2.57 | 1.45 |
Price/Sales | 0.77 | 1.06 | 1.70 |
Price/Cash Flow | 5.24 | 20.00 | 7.76 |
|
Metric
|
ELE
|
NTGY
|
IBE
|
|---|---|---|---|
Quick Ratio | 0.87 | 1.02 | 0.60 |
Current Ratio | 1.10 | 1.22 | 0.77 |
Interest Coverage | 6.61 | 5.10 | 4.98 |
|
Metric
|
ELE
|
NTGY
|
IBE
|
|---|---|---|---|
Return on Assets (Normalized) | 4.12% | 6.86% | 4.79% |
Return on Equity (Normalized) | 35.63% | 30.46% | 14.40% |
Return on Invested Capital (Normalized) | 10.95% | 11.21% | 7.51% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
NEE
| NextEra Energy Inc | Btgppywkmf | Cyksw | $156.3 Bil | |
SO
| Southern Co | Znnycmlbp | Fvrlj | $87.0 Bil | |
DUK
| Duke Energy Corp | Qhyxnhyv | Nmpdsf | $79.4 Bil | |
NGG
| National Grid PLC ADR | Mthryczc | Mdjc | $53.6 Bil | |
AEP
| American Electric Power Co Inc | Tlchdkyvn | Yrqdcy | $48.8 Bil | |
PCG
| PG&E Corp | Wxydxcql | Ndzq | $48.6 Bil | |
D
| Dominion Energy Inc | Wclttsd | Gqvwmv | $44.8 Bil | |
EXC
| Exelon Corp | Dnwjggqdt | Nrncp | $38.6 Bil | |
PEG
| Public Service Enterprise Group Inc | Mcwsrdjs | Ygynft | $37.1 Bil | |
ED
| Consolidated Edison Inc | Bgjhzpqk | Npn | $33.6 Bil |
