[EUROPE // RESEARCH]
EQUITY RESEARCH[EU]
Regulated asset allocation in ENG.MC: returns and cash flows at a 15.35x P/E
Sector allocation within gas infrastructure dissecting cash conversion, the 26.9% EBIT margin, and Enagás valuation against regulated industry cash flows.
KEY TAKEAWAYS
- Valuation multiples price ENG.MC at a 15.35x P/E and a 15.37x EV/EBITDA.
- Free cash flow is constrained at 139.54 million, tightening dividend coverage ratios.
- The EBIT margin contracts to 26.9% despite a stellar 93.6% gross margin.
- ROE registers at 12.7%, while ROIC remains N/D under current regulatory frameworks.
