Enlight Renewable Energy Ltd
Enlight Renewable Energy Ltd Fundamental Analysis
Enlight Renewable Energy Ltd (ENLT) shows moderate financial fundamentals with a PE ratio of 60.64, profit margin of 21.40%, and ROE of 4.89%. The company generates $0.8B in annual revenue with strong year-over-year growth of 52.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ENLT's fundamental strength across five key dimensions:
Efficiency Score
WeakENLT struggles to generate sufficient returns from assets.
Valuation Score
WeakENLT trades at a premium to fair value.
Growth Score
ModerateENLT shows steady but slowing expansion.
Financial Health Score
WeakENLT carries high financial risk with limited liquidity.
Profitability Score
WeakENLT struggles to sustain strong margins.
Key Financial Metrics
Is ENLT Expensive or Cheap?
P/E Ratio
ENLT trades at 60.64 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ENLT's PEG of 2.01 indicates potential overvaluation.
Price to Book
The market values Enlight Renewable Energy Ltd at 1.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.05 times EBITDA. This is generally considered low.
How Well Does ENLT Make Money?
Net Profit Margin
For every $100 in sales, Enlight Renewable Energy Ltd keeps $21.40 as profit after all expenses.
Operating Margin
Core operations generate 58.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.89 in profit for every $100 of shareholder equity.
ROA
Enlight Renewable Energy Ltd generates $0.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Enlight Renewable Energy Ltd generates strong operating cash flow of $376.08M, reflecting robust business health.
Free Cash Flow
Enlight Renewable Energy Ltd generates weak or negative free cash flow of $-2.84B, restricting financial flexibility.
FCF Per Share
Each share generates $-20.48 in free cash annually.
FCF Yield
ENLT converts -25.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ENLT Stacks Against Its Sector Peers
| Metric | ENLT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.64 | 19.69 | Worse (Expensive) |
| ROE | 4.89% | 936.00% | Weak |
| Net Margin | 21.40% | 8814.00% | Weak |
| Debt/Equity | 3.23 | 1.49 | Weak (High Leverage) |
| Current Ratio | 0.67 | 1.50 | Weak Liquidity |
| ROA | 0.60% | -6168.00% (disorted) | Weak |
ENLT outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Enlight Renewable Energy Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.44%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
218.14%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-9.76%
Industry Style: Defensive, Dividend, Income
Declining