Buffett Brain · Research note
Score updated 29 Oct 2026
ENL.DE· Utilities
Enel SpA
Enel SpA's utility margins and leverage issues overshadow its sector-leading ROIC, failing Buffett's criteria for a wonderful business.
Buffett fit
Partial fit
Owner
26
Durability
60
Management
44
Price
47
Score updated 29 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Utilities stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Enel SpA would involve managing a business with a 5.3% and a of 7.8%.
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Enel's durability is challenged by its low and high debt.
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Enel's shows a share count CAGR of 2.16%, suggesting dilution without offsetting .
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With a of 22.7 and an yield of 4.48%, Enel's valuation does not offer a .
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 7.8% is top-quintile in its sector.
- 2Net income of $4.23B shows consistent profitability.
- 3/Net Income ratio of 1.02 indicates strong earnings quality.
- 4EPS CAGR of 33.06% over five years.
Concerns
6- 1 of 5.3% is well below sector top-quintile.
- 2Net debt/EBITDA of 3.06 indicates high .
- 3Interest coverage ratio of 3.9 is below the 5x comfort level.
- 4Revenue CAGR of -13.07% over five years is concerning.
Price history
$9.33+28.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Enel SpA operates as an integrated utility, generating and distributing electricity and gas globally. It segments into Thermal Generation and Trading, Enel Green Power, and others. With a revenue of $67.45B and a net income of $4.23B, its is a low 5.3%, indicating challenges in cost efficiency. The unit economics are strained by high capital requirements typical of utilities.
What other investors would say
The same company, judged by three other documented playbooks.
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