Enagás, S.A. (ENG.MC) stock analysis

In our weekly check, Enagás, S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6.

About Enagás, S.A.

Enagás, S.A. is an Utilities company (Regulated Gas) based in Spain, listed on BME as ENG.MC.

What our checks show for ENG.MC

Red flags

• Net debt is 5.5x a year of EBITDA (debt/equity 1.33). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 18.7 points over 5 years, to 22.7%: the company keeps less of each sale as profit.
• The gross margin fell by 78.1 points, to 16.8%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 1.6% a year.
• Revenue fell 1.3% a year over the last 3 years.
• Return on capital (ROCE) is only 3.4%.

Warning signs

• Operating profit covers interest only 3.7 times: a weak year could make the payments hard.
• Earnings per share fell 17.5% a year over the last 3 years.
• Net profit fell 17.8% a year over the last 3 years.
• Free cash flow covers the dividend only 0.6 times.
• The stock has fallen as much as 59% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Analysts expect earnings per share to grow about 15.2% a year over the next years.
• Analysts expect the net margin to improve by 11.1 points from today's 22.7%.
• The company keeps 22.7% of its revenue as net profit.
• Free cash flow is 10.3% of revenue: cash for dividends, buybacks or growth.
• Beta 0.27: the stock usually moves less than the market.
• Pay in shares is only 0.6% of free cash flow.

Similar companies

BIPC · OGS · MDU · SR · NJR · DCC.L

Questions

What grade does Enagás, S.A. (ENG.MC) have?

In our weekly check, Enagás, S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ENG.MC stock?

This week's biggest flags for Enagás, S.A.: High debt, Margins falling, Gross margin falling. In total 12 of 25 checks show a warning or a red flag.

What does Enagás, S.A. do?

Enagás, S.A. is an Utilities company (Regulated Gas) based in Spain, listed on BME as ENG.MC.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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