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.
