Best Italian Stocks to BUY in 2025: ENEL

Let’s look at the technical analysis of ENEL shares . ENEL , an acronym for Ente Nazionale per l’Energia Elettrica , is one of Italy’s leading energy companies and a major player in the global energy landscape. Its shares are listed on the Milan Stock Exchange under the symbol ENEL . Founded in 1962, following the nationalization of the Italian electricity sector , ENEL was born with the aim of unifying the production and distribution of electricity in a single public entity. This step marked a crucial moment in Italy’s industrialization and economic development, providing accessible and reliable energy throughout the country.

Over the decades, ENEL has undergone a profound transformation, culminating with its privatization in the 1990s, as part of a broader liberalization of the European energy market. Listed on the stock exchange since 1999, ENEL is now a multinational with a widespread presence in over 30 countries, managing a total installed capacity that makes it one of the largest operators in the sector at a global level.

In Italy, ENEL plays a key role as the main electricity distributor and leading supplier of renewables . Its commitment to the energy transition is central to the country’s climate goals. Through innovative projects, the company promotes decarbonization and energy efficiency, significantly contributing to the reduction of greenhouse gas emissions.

Globally, ENEL is recognized as a leader in renewable energy production , with a strong focus on solar, wind, hydroelectric and geothermal. Its renewable energy division, ENEL Green Power, is a point of reference for the development of innovative and sustainable technologies. Through investments in research and development, ENEL is exploring new frontiers, such as energy storage, electric mobility and smart grids , to improve the efficiency and resilience of energy systems.

ENEL’s importance is also reflected in its social responsibility programs and initiatives to promote universal access to energy. In many regions of the world, especially in Latin America and Africa, the company is committed to improving energy infrastructure and promoting sustainable projects that foster economic and social development.

In short, ENEL is a pillar of Italian energy, an innovator in technological research and a global player of great influence.

ENEL Technical Analysis

1. Business Model and Market Position

• Main activities : ENEL operates in four fundamental sectors:
  • Energy production : From renewable sources (wind, solar, hydroelectric, geothermal) and non-renewable sources (gas, nuclear).
  • Distribution : Manages advanced electrical networks, integrated with smart grid technologies .
  • Energy Sales : A wide range of products for residential and industrial customers.
  • Energy Services : Development of innovative solutions such as batteries, storage systems, electric mobility.
• Key markets : Italy, Europe (Spain, Romania, Russia), Latin America, United States and Africa.
• Competitiveness : ENEL positions itself as a leader in renewable energy through ENEL Green Power, with a competitive advantage supported by strong technological and management capabilities.

2. Financial Performance

• Revenues and profits : ENEL enjoys a stable revenue base thanks to geographical and sector diversification.
  • Positive factors : Growth of the renewables segment; increasing energy demand in emerging economies.
  • Challenges : Energy price fluctuations, environmental regulations and margin pressures in competitive markets.
• Debt : ENEL has a significant level of debt, balanced however by constant cash flows and targeted investments in the energy transition.
• Investments : Growing commitment to clean energy infrastructure and digital networks.

3. Innovation and Research

• ENEL invests significantly in:
  • Renewable Technologies : Expansion of highly efficient solar and wind plants.
  • Energy storage : Development of batteries to ensure grid stability.
  • Electric mobility : Design of charging networks for electric vehicles.
  • Digitalization : Smart grids to optimize energy efficiency and reduce operating costs.

4. Market Analysis

• Global Trends :
  • Growth of renewable energy, with an expansion of installed capacity of ENEL Green Power.
  • Strong demand for energy in emerging markets, where ENEL is well positioned.
• External challenges :
  • Competition in the renewables sector from large operators (Iberdrola, EDF).
  • Ever more stringent environmental regulations.
  • Geopolitical risks in some areas of operation, such as Latin America and Eastern Europe.

5. Future Prospects

• Energy transition : ENEL is well aligned with global emissions reduction targets thanks to a growing share of renewable energy.
• Growth in Smart Grids : Digitalization plans and the adoption of innovative technologies position the company as a leader in smart grids.
• Geographic Expansion : Growth opportunities in high-demand markets, such as Africa and Asia.
• Strategic challenges :
  • Debt management in a rising interest rate environment.
  • Adapting to energy market volatility.

ENEL is a solid company with a clear strategy to address the global energy transition. Despite the challenges related to competition and regulations, the focus on renewables and innovation strengthens its growth potential. On the technical side, a deeper analysis of market metrics (such as P/E , EBITDA , operating margin ) and financial trends can provide additional insights for investment decisions.

What characterizes these actions

ENEL shares are one of the most important stocks on the Italian stock market and are characterized by a series of peculiarities that make them interesting for investors. Here are the main characteristics:

1. Membership in a Relevant Index

• ENEL shares are listed on the Italian Stock Exchange and are part of the FTSE MIB index , which includes the main Italian companies by capitalization and liquidity.
• They are also included in several international sustainability indices, such as the FTSE4Good and the Dow Jones Sustainability Index , thanks to the company’s strong commitment to the energy transition and ESG (Environmental, Social, Governance) practices.

2. Dividends

• ENEL is known for offering stable and often growing dividends , making it a popular choice among yield-oriented investors.
• The dividend policy is transparent and linked to financial performance: usually, the company distributes a significant part of the profits to shareholders, ensuring a good return ( dividend yield ).

3. Liquidity

• ENEL shares are highly liquid , with a high daily trading volume. This makes them easy to buy and sell, reducing the risk of illiquidity for investors.

4. Risk Profile

• Moderate Volatility : As one of Italy’s blue chips, ENEL shares tend to be less volatile than stocks of smaller or less established companies.
• Energy Sector Sensitivity : ENEL stock performance is closely tied to energy prices, environmental regulation and the transition to renewables.

5. Shareholder Structure

• The Italian State , through the Ministry of Economy and Finance, is the main shareholder of ENEL, with a stake of approximately 23.6% (subject to change). This provides stability and a certain security, but also implies that strategic decisions are influenced by public policies.

6. Growth Factors

• Energy Transition : ENEL’s commitment to renewable energy and the growing global demand for clean energy are key drivers of the long-term growth potential of its shares.
• Digitalization : Investments in smart grids and electric mobility can increase the value of shares.
• International Expansion : Diversified presence in emerging markets helps stabilize revenues and open up new growth opportunities.

7. Financial Evaluation

• Market Multiples : ENEL typically has moderate multiples compared to other energy companies, such as the price-to-earnings (P/E) ratio, making it a competitive pick.
• Credit Rating : The company enjoys a good credit rating, which reflects the strength of the financial structure and supports investor confidence.

8. ESG and Sustainable Investments

• ENEL’s strong focus on sustainability makes it attractive to institutional and private investors who favor stocks with high ESG standards.
• The company is a global leader in renewable energy production, a key element in attracting capital in a context of ecological transition.

ENEL shares are ideal for long-term investors , thanks to their stability, growth potential in the renewables sector and a favorable dividend policy. However, it is important to consider the risks related to regulation, competition and fluctuations in energy prices. Geographic diversification and commitment to sustainability remain strengths that guarantee added value in investors’ portfolios.

Enel and the Energy Sector Outlook for 2025

Enel recently presented its 2025-2027 Strategic Plan, outlining a clear vision for the future of the company and the energy sector. The plan calls for gross investments of around 43 billion euros, an increase of 7 billion compared to the previous plan. Of these, around 26 billion will be allocated to the development of networks, mainly in Italy and Spain, while 12 billion will support growth in the renewable energy sector.

LATEST DIVIDENDS

Source: Enel

For the fiscal year 2024, the Strategic Plan 2025-2027 provides for a minimum fixed dividend per share of €0.46, with a potential increase up to a payout of 70% on the Group’s ordinary net profit.

Group Outlook 2025-2027

1. Performance 2024:
   • Enel achieved a solid performance, meeting the strategic objectives presented the previous year.
2. Strategic Pillars of the 2025-2027 Plan :
   • Profitability, flexibility and resilience : Selective capital allocation to optimize the risk/return profile.
   • Efficiency and effectiveness : Optimizing processes and portfolio to increase cash generation and develop innovative solutions.
   • Financial and environmental sustainability : Maintain a robust framework to address climate change.
3. Planned Investments :
   • Total investments : Around 43 billion euros , an increase of 7 billion compared to the previous plan.
     • Networks : 26 billion (+40% compared to the previous plan), with 78% destined for Italy and Spain and the remaining 22% in Latin America.
     • Renewables : 12 billion, with an increase in capacity of around 12 GW , especially in onshore wind and programmable technologies such as hydroelectric and batteries.
     • Customers : 2.7 billion, with 85% invested in countries with an integrated presence, to offer energy solutions and innovative services.
4. Financial Objectives for 2027 :
   • Ordinary EBITDA : Expected between 24.1 and 24.5 billion euros .
   • Ordinary net profit : Expected between 7.1 and 7.5 billion euros .
   • Geographic distribution of investments : 75% in Europe, 25% in Latin America and North America.
5. Dividend Policy :
   • 2024 Dividend : Proposal of 0.46 euros per share , higher than the 0.43 euros envisaged in the previous plan.
   • New minimum annual DPS (2025-2027) : €0.46 per share, with a potential increase up to a 70% payout on ordinary net income.
6. General Outlook :
   • The plan’s strategic investments and actions aim to generate stable and predictable returns.
   • Strong emphasis on sustainability, renewable growth and operational efficiency, consolidating Enel’s role as a leader in the global energy transition.

Internationally, the energy sector is undergoing a significant transformation. According to the International Energy Agency’s (IEA) World Energy Outlook 2023, global demand for coal, oil and natural gas is expected to peak before 2030, with increasing adoption of renewable energy.

Additionally, renewables are set to become the largest source of global electricity generation by early 2025, surpassing coal.

In short, Enel is strategically positioning itself to lead the energy transition , with significant investments in networks and renewables. This strategy is in line with global trends that see a growing adoption of sustainable energy sources and a progressive reduction in the use of fossil fuels.