ESOCF - Enel: Net Profit Beat, Guidance Confirmed, Still A Buy
2025-03-16 10:31:59 ET
Summary
- Enel reported strong Q4 and FY 2024 results. We report strong operating performance in Spain and margin normalization in Italy.
- Thanks to ongoing deleveraging, we maintain a positive outlook. This is due to the potential upside in shareholders' remuneration and a rigorous process for acquiring only EPS-accretive assets.
- The CEO mentioned buyback optionality. With additional short-term catalysts, Enel trades at an unjustified discount to peers, offering the highest yield among EU-integrated peers. Our buy is confirmed.
On 13/03/2025, Enel SpA (ENLAY) reported its Q4 and FY 2024 results after market hours. We believe the company is poised to become Europe's most attractive integrated utility player thanks to strong earnings quality, lower cost of capital due to ongoing deleveraging, and lower exposure to emerging markets. Furthermore, the company now boasts one of the strongest balance sheets, which will boost EPS and shareholder distributions. In our last analysis, Enel unveiled a new 2025-27 Strategic Plan that was well-received by the market. Thus, we are unsurprised to see a positive stock price evolution since our last update (despite the latest negative market dynamics - Fig 1). ...
Enel: Net Profit Beat, Guidance Confirmed, Still A Buy