Endesa SA
🇪🇸 ELE.MC · Madrid · ES0130670112
Utilities
EUR 37.54 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
18.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 37.54 ÷ 2.08 = 18.1
TTM period through: 2025-12-31
Forward P/E (estimated): 16.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 17.9
Yield (Fwd)
4.21%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.30%
Net Debt/EBITDA (TTM)
2.0x
Latest quarter: 7.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 7.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
76.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 63.2%
Cash Flow Payout (TTM): 34.3%
FCF Coverage (TTM): 1.59x
ROE
23.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
9.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Endesa is a dominant Spanish regulated utility providing essential services with highly predictable, recession-resistant cash flows and an exceptionally strong balance sheet. While the company boasts excellent fundamentals and a very secure 4.3% yield backed by robust free cash flow, the current P/E ratio near 18 offers limited upside. Existing shareholders should maintain positions, but new investors may want to wait for a better entry point closer to the strategy's target valuation range.
Sector Context
Endesa is a dominant Spanish regulated utility providing essential electricity generation and distribution services. Utilities typically offer highly predictable, recession-resistant cash flows and can safely support higher debt levels due to regulated returns, making them ideal for long-term dividend investing.
Temporary Opportunity Identified
Short-term management uncertainty due to a CEO transition and residual market caution from a 2024 dividend cut driven by a one-time arbitration penalty.
📊 Strategy Analysis
- • Excellent cash flow generation with Free Cash Flow covering the dividend 1.59x, resulting in a very safe 34.3% cash flow payout ratio.
- • Conservative balance sheet for a utility with a Net Debt/EBITDA of 2.01x, well below the 3x strategy threshold.
- • Dominant market position in an essential services sector, generating a robust 23.9% Return on Equity.
⚠ What to Watch
- • Current TTM P/E of 18.08 sits above the strategy's ideal 8-15x target range, offering limited margin of safety for new capital.
- • Upcoming CEO transition after 12 years and reported oversight changes from Italian parent company Enel introduce short-term management uncertainty.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.