ENLTEnlight Renewable Energy Ltd
Is the business good?
The checks split: earnings fully cash-backed (1.1×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 8% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ENLT?
Enlight Renewable Energy Ltd earns 9.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.04 points below what the capital costs: growth destroys value
- Operating margin
- 68%
Operating margin · Utilities median 21% · fiscal year to FY2025
- Cash conversion
- 1.08×
Cash conversion · 1.85× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +7.5%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 40% |
| FY2021 | 34% |
| FY2022 | 47% |
| FY2023 | 62% |
| FY2024 | 46% |
| FY2025 | 68% |
Details›
- Gross marginfiscal year to FY2025
- 73%
- Operating marginfiscal year to FY2025
- 68%
- Net marginfiscal year to FY2025
- 27%
- Free cash flow margin
- −313%
- R&D as % of revenue
- 2.5%
- Revenue, trailing twelve months
- $489M
- Free cash flow, trailing twelve months
- −$1.53B
- Net income, trailing twelve months
- $132M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.