Energix - Renewable Energies (TASE:ENRG) has signed turbine purchase and installation agreements for 296MW of Lithuanian wind projects. The contracts cover Tower, Boniskiai and Vandziogala, aligning delivery schedules with planned 2027 grid connection targets.
The turbine deal lands after a weak stretch for Energix - Renewable Energies' shares, with the 30 day share price return down 10.54% and the 90 day move down 21.91%, even though the year to date share price return is 7.78% and the 3 year total shareholder return is 99.49%. This signals that long term momentum remains intact despite recent pressure.
Scan beyond Energix - Renewable Energies and see how other renewables-focused utilities are positioned by checking our hand picked 43 power grid technology and infrastructure stocks in one place.
After a sharp pullback yet strong multi year gains, Energix - Renewable Energies now trades close to some fair value models and far from others. Where does a reasonable valuation range actually land for this stock?
Price-to-Earnings of 79.6x: Is it justified?
Energix - Renewable Energies currently trades on a P/E of 79.6x, which suggests a rich valuation when set against its ₪18 last close.
The P/E ratio compares what investors are willing to pay today for each unit of current earnings. For a renewables developer like Energix - Renewable Energies, a high P/E often signals that the market is pricing in meaningful future earnings strength.
Here, the earnings picture is mixed. Profit margins sit at 16.3% compared with 23.7% last year, and earnings declined 37.2% over the past 12 months, even though they have grown by 14% per year over the past 5 years. That combination points to a business with a positive longer term track record but recent profit pressure, which makes a near 80x multiple look demanding.
The peer comparison is even starker. Energix - Renewable Energies trades at 79.6x earnings, while the peer group averages 46.4x and the wider Asian renewable energy industry sits around 14x. The stock is priced at a heavy premium to both its local peers and the broader sector, which indicates the market is paying up aggressively for its earnings profile.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 79.6x (OVERVALUED)
Still, any setback on its Lithuanian build out or a shift in policy support for renewables could quickly challenge the optimistic valuation around Energix - Renewable Energies.
Find out about the key risks to this Energix - Renewable Energies narrative .
Another View: What The SWS DCF Model Says
The P/E makes Energix - Renewable Energies look expensive, yet the SWS DCF model paints an even harsher picture. With the share price at ₪18 against an estimated future cash flow value of ₪3.81, the stock screens as materially overvalued on a cash flow basis. If both earnings and cash flows point to a rich price, what exactly is the market paying for in this case?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out Energix - Renewable Energies for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 179 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
The tone of this Energix - Renewable Energies review might feel cautious, so treat it as a starting point and pressure test everything against the raw data yourself. If you want to understand the specific red flags that others are watching, take a close look at the 4 important warning signs .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ENRG.TA .
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