Read This to Understand ENI S.p.A. Stock

It hasn't been a great morning session for ENI investors, who have watched their shares sink by -1.2% to a price of $27.87. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.

ENI S.p.A. Has Attractive Multiples and Trades Below Its Graham Number:

ENI operates as an integrated energy company worldwide. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 7.54 and an average price to book (P/B) ratio of 1.68. In contrast, ENI S.p.A. has a trailing 12 month P/E ratio of 3.5 and a P/B ratio of 0.85.

ENI has moved 15.1% over the last year compared to 12.0% for the S&P 500 — a difference of 3.0%. ENI S.p.A. has a 52 week high of $32.21 and a 52 week low of $20.38.

The Business Has Weak Operating Margins:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $69,881 $43,987 $76,575 $133,440
Gross Margins 15.6% 7.1% 18.2% 18.0%
Operating Margins 11.7% -1.1% 15.6% 14.4%
Net Margins 0.21% -19.63% 7.6% 10.41%
Net Income (MM) $148 -$8,635 $5,821 $13,887
Net Interest Expense (MM) -865 -1,427 -493 -883
Net Interest Expense (MM) -$865 -$1,427 -$493 -$883
Depreciation & Amort. (MM) -$8,106 -$7,304 -$7,063 -$825
Earnings Per Share $0.08 -$4.84 $3.2 $7.91
EPS Growth n/a -6150.0% 166.12% 147.19%
Diluted Shares (MM) 1,797 1,790 1,787 1,665
Free Cash Flow (MM) $4,016 $190 $7,625 $5,035
Capital Expenditures (MM) -$8,376 -$4,632 -$5,236 -$783
Net Current Assets (MM) -$40,613 -$39,253 -$35,369 -$35,074
Current Ratio 1.18 1.39 1.34 1.27
Long Term Debt (MM) $18,910 $21,895 $23,714 $19,374
Net Debt / EBITDA 1.32 6.6 1.12 0.75

ENI S.p.A. has exceptional EPS growth and low leverage. Additionally, the company's financial statements display growing revenues and decreasing reinvestment in the business and generally positive cash flows. However, the firm suffers from slimmer gross margins than its peers and weak operating margins with a positive growth rate. Finally, we note that ENI S.p.A. has just enough current assets to cover current liabilities.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.