Enlight Renewable Energy Ltd. (NASDAQ: ENLT)

Sector: Utilities Industry: Utilities - Renewable CIK: 0001922641
Market Cap 9.32 Bn
P/B 5.52
P/E 66.03
P/S 14.79
ROIC (Qtr) 3.12
Div Yield % 0.00
Rev 1y % (Qtr) 46.36
Total Debt (Qtr) 5.54 Bn
Debt/Equity (Qtr) 3.28
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About

Enlight Renewable Energy Ltd., or ENLT, is a global renewable energy platform that operates in the utility-scale renewable energy sector. Listed on the Nasdaq Global Select Market under the ticker symbol ENLT, the company is based in Israel and has a presence in 11 countries across three continents. ENLT's business model encompasses the entire project lifecycle, from development to ownership and operations, and its integrated capabilities enable it to achieve strong project returns and support robust long-term growth. The company's portfolio is...

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Investment thesis

Bull case

  • Strong operating cash flow of 282.65M provides 4.40x coverage of SG&A expenses 64.25M, showing efficient operational cost management.
  • Tangible assets of 8.33B provide exceptional 22.46x coverage of deferred revenue 370.73M, showing strong service capability backing.
  • Strong free cash flow of (1.53B) provides 53.12x coverage of acquisition spending (28.80M), indicating disciplined M&A strategy.
  • Cash position of 937.92M provides exceptional 29.14x coverage of minority interest expenses 32.19M, indicating strong liquidity.
  • Operating cash flow of 282.65M fully covers other non-current liabilities 178.79M by 1.58x, showing strong long-term stability.

Bear case

  • Operating cash flow of 282.65M barely covers its investment activities of (2.18B), with a coverage ratio of -0.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.18B) provide weak support for R&D spending of 12.30M, which is -177.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 937.92M provide limited coverage of acquisition spending of (28.80M), which is -32.57x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 282.65M provides insufficient coverage of deferred revenue obligations of 370.73M, which is 0.76x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 282.65M shows concerning coverage of stock compensation expenses of (78.97M), with a -3.58 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Utilities - Renewable
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CEG Constellation Energy Corp 98.92 Bn 153.61 4.71 9.04 Bn
2 ENLT Enlight Renewable Energy Ltd. 9.32 Bn 66.03 14.79 5.54 Bn
3 BEP Brookfield Renewable Partners L.P. 9.20 Bn -37.24 1.46 39.66 Bn
4 ORA Ormat Technologies, Inc. 5.64 Bn 146.14 14.39 2.75 Bn
5 CWEN Clearway Energy, Inc. 4.62 Bn 184.82 3.85 9.22 Bn
6 FLNC Fluence Energy, Inc. 2.37 Bn -45.59 0.93 0.39 Bn
7 RNW ReNew Energy Global plc 1.93 Bn 14.53 1.21 9.22 Bn
8 XIFR XPLR Infrastructure, LP 1.00 Bn -35.67 0.84 6.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.52 0.82
EV to Cash from Ops. EV/CFO 46.44 3.77
EV to Debt EV to Debt 2.37 -7.57
EV to EBIT EV/EBIT 36.18 18.11
EV to EBITDA EV/EBITDA 26.53 5.59
EV to Free Cash Flow [EV/FCF] EV/FCF -8.58 -9.43
EV to Market Cap EV to Market Cap 1.41 -1.15
EV to Revenue EV/Rev 20.82 -22.88
Price to Book Value [P/B] P/B 5.52 2.64
Price to Earnings [P/E] P/E 66.03 1.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.71
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -0.74
Dividend per Basic Share Div per Share (Qtr) 0.00 0.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 12.62
Interest Coverage Int. cover (Qtr) 2.12 -4.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -101.56 -691.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 97.47 37.74
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.15
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 121.67 -300.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 84.44 -47.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 112.97 -76.46
EBT Growth (1y) % EBT 1y % (Qtr) 206.89 -85.90
EPS Growth (1y) % EPS 1y % (Qtr) 208.11 398.06
FCF Growth (1y) % FCF 1y % (Qtr) -137.57 1,637.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 52.07 93.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.07 0.35
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.58 1.83
Current Ratio Curr Ratio (Qtr) 0.67 2.29
Debt to Equity Ratio Debt/Equity (Qtr) 3.28 0.89
Interest Cover Ratio Int Coverage (Qtr) 2.12 -4.73
Times Interest Earned Times Interest Earned (Qtr) 2.12 -4.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 81.30 -241.05
EBIT Margin % EBIT Margin % (Qtr) 57.53 -107.41
EBT Margin % EBT Margin % (Qtr) 30.41 -407.45
Gross Margin % Gross Margin % (Qtr) 76.70 9.67
Net Profit Margin % Net Margin % (Qtr) 22.40 -408.25