Buy Enel Shares: How To, Prices And Opinions
Published: October 21, 2020 by Valentina
Is it worth to buy Enel shares in 2020? And how can you buy an Enel share? Have you ever wondered how to invest in Enel shares? Or do you simply want to know more about this company, which is so important for the Italian economy?
If your answer is yes to at least one of these questions, you are in the right place!
In our guide today we will spend some time to understand which is the most convenient way to buy Enel shares.
We will discover some of the main characteristics of this company and we will understand if it is convenient or not to buy Enel shares.
Before starting, however, we ask you one thing: open a demo account with one of the best brokers that you can find on the web. In this way, you will be able to apply all the tips you find here directly on the markets.
But this is not all: By using a demo account, you can invest without risk and without real loss, because all the movements will be “virtual”.
If you do not yet have your own CFD broker of reference or maybe you want to try a new one, we recommend below three real “number one” of this sector.
Buy Enel shares with eToro
The first broker we want to introduce you to is eToro (official website). If you have even the slightest experience with the financial markets and with online trading, this name will probably not be new.
eToro is in fact the world leader in copytrading, a fantastic way of investing that will allow you to invest in financial markets by copying what the best traders do.
You understood well: With eToro you don’t need to be a great financial expert to be able to invest in Enel or in other companies. All you have to do is identify one or more investors who, for yield, risk profile, and other characteristics, seem to be right for you. At this point, you will have to confirm the intention to copy them and … the broker will do the rest!
Obviously, the above does not mean that eToro is not an excellent broker even for those looking to invest in complete autonomy.
Its trading platform is among the simplest and most powerful that we have ever used, and there are really many services that allow to invest with the right awareness.
Buy Enel shares with Trade.com
If eToro is a real champion of online trading, the same can be said of Trade.com (official website).
This broker has convinced us over the years thanks to its professionalism. In fact, it has a solid and reliable investment platform, an excellent choice of assets to invest in (of course, there are also Enel shares) and many training tools , information, and support.
The process of registering a new account with Trade.com is quick and intuitive. In a few minutes, you will be able to complete it, shortening the distance that separates you from entering the world of financial markets!
Buy Enel shares on the stock exchange: What you need to know first
Before starting to buy Enel shares, it is good to understand who you will be dealing with. We certainly do not want to summarize the long history of this company (there are more authoritative and complete sources to which you can certainly turn), but at least we will try to explain its main characteristics in order to give you an idea.
With this in mind, we remind you that Enel is the most well-known Italian multinational electricity and gas company.
Born in 1962 as a public company, in 1992 it was privatized becoming a joint-stock company. In 1999, it was listed on the stock exchange. Anyway, the Italian state, through the Ministry of Economy and Finance, is still the main shareholder of the company with a share of just under a quarter of the share capital.
The company is listed on the Milan Stock Exchange’s FTSE MIB index and is one of its main components.
Buy Enel shares: The main competitors
On an international level, Enel’s main competitors are, of course, the big names in the energy sector. For example EDF (with which Enel also signed an important partnership in 2007, where the Italian company entered the French nuclear program) or even E.ON.
If, on the other hand, you are thinking of Enel’s national competitors, it is good to remember that following the liberalization of the market, Enel is certainly not a monopolist, but – although it occupies a particularly important role in the national energy sector – it must still compete with a growing range of operators.
Among the best known, we can find: Eni Gas e Luce, Acea Energia, a2a, Edison, Hera Comm, Iren Luce Gas and Services, Agsm Energia, Illumia, Green Network, Engie, Enne Energia, Europe Energy, Gritti Energia, Levigas, Enegan, ENERcom, Sorgenia, Wekiwi, Estra Energie, AIM Energia, Unogas, Optima, Bluenergy, Axpo, Dolomiti Energia, Iberdrola, Trenta, ABenergie, Ascotrade, Autogas Nord, Blue Meta, Energit, Revoluce, SGR Rimini, Vivigas, Enerxenia.
Performance of Enel shares
At the time of writing (April 3, 2020), Enel shares are experiencing a negative performance both on a monthly basis (- 15%) as well as on a quarterly basis (- 13%). Instead, they maintain a positive performance on an annual basis (+ 13%).
It is clear that the recent performance of Enel shares has suffered the effects of the serious pandemic crisis, which has put the brake on a long positive trend.
Enel Forecast shares
Enel archived 2019 with growing results, which partially exceeded analyst expectations.
In particular, we note:
- Revenues up by 6.1% to 80.3 billion euros;
- EBITDA up by 10.5% to € 17.9 billion;
- Net result down by 56.6% to € 2.17 billion.
Regarding the upper part of the income statement, the good support generated by the positive trend of the distribution networks division is evident, with particular reference to Latin America, as well as the thermoelectric generation and trading activity in the Italian and Spanish market.
In 2019, the group reached the target of 3 Gigawatts of new installed renewable capacity, with a reduction of 4.1 Gigawatts of coal generation. The increase in margins is also derived from the decrease (1%) in operating costs.
With regard to the sharp drop in the net result, we should remember that the write-down relating to coal plants, in Italy and abroad, had a profound effect on it – almost € 4 billion.
Therefore, the ordinary net result without this contribution would have increased by 17.4% to € 4.76 billion.
Among other data, a high net financial debt stands out – 45.2 billion euros – an increase of about 4 billion euros compared to the end of 2018, but still within 2.5x as the ratio between the net debt and the EBITDA.
Regarding the forecasts for the near future, despite the difficult situation caused by the Coronavirus, Enel is however fully operational. A large part of its business is also regulated with returns on investments predefined by the competent authorities and the management has specified that it has the financial flexibility to be able to cover the needs of the business plan.
For this reason, too, Enel has stated that it does not foresee significant impacts on the 2020 economic results due to the Covid-19 emergency, keeping the objectives of the 2020-22 business plan unchanged for the time being.
Dividends for Enel shares
Speaking about the dividend: The board of directors proposed the distribution of a dividend of 0.328 euros per share, of which 0.16 euros per share already paid on account in January, with a 17% growth compared to the dividend of 0.28 euro per share of the previous year.
Buy Enel shares: Advantages and disadvantages
As for the advantages of buying Enel shares, we must underline how:
- It is a market leader with a very solid position on different territories;
- There is a rather diversified offer in the energy market with numerous different sources and a substantial and strategically convincing plan.
However, there are also important points: For example, we have already mentioned how indebtedness is quite high, although not alarming. Or, again, Enel has most of its activities in Europe, with a positioning that some analysts believe is too weak in some important markets such as Asia or Africa.
How to invest in Enel shares
If you are thinking to buy Enel shares, the first thing that comes to your mind is probably to go to your bank and speak with your consultant.
However, this is not the most convenient option!
As we have explained today, the most convenient alternative is certainly to use one of the best brokers that we shared with you, choosing from this list:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
The advantages are numerous. Think for example of the possibility of:
- Trade without costs and commissions, considering that the only remuneration for the broker is the spread;
- Invest and earn both if the market is growing as well as falling;
- Multiply your profits (but, be careful, your losses too!) with leverage;
- Use a simple trading platform, which can also be used from the smartphone;
- Customize each position by setting the stop loss and take profit levels that will allow you to respect your strategic indications;
- Take advantage of the training courses, information, and analysis tools that will help you improve awareness while investing;
- Train for free using the demo accounts that brokers make available to you.
As we said many times, today everybody can invest in this company. Buying Enel shares has become very simple thanks to the explosion of online trading and CFDs, contracts for difference, which you can negotiate with one of the brokers given.
In any case, it is good that you always remember that investing in Enel is a financial investment operation in all respects! Therefore, there are risks that you should face and that you should not overlook.
Furthermore, the advice to use a demo account during your early exploration of the financial market is still valid.
In this way, you will be able to practice better the use of the investment platform that you have chosen without any risk. We remind you that the capital that you will use in demo mode will not be real, but it will consist only of a virtual currency.
Said this, we would like to ask you to share this article with all your contacts and use the comment section to tell your ideas!
What do you think about investing in Enel shares? Have you ever bought Enel shares? What are the brokers and investment platforms that you usually use to get the best of your online trading? Is there any suggestion you would like to share with all of us and our readers?