Stock Analysis & Valuation Eni S.p.A. (ENI.DE)

• Previous Close: €17.23
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	8.76	-49
Intrinsic value (DCF)	7.45	-57
Graham-Dodd Method	4.64	-73
Graham Formula	2.62	-85

Strategic Investment Analysis

Company Overview

Eni S.p.A. (ENI.DE) is a leading Italian multinational energy company headquartered in Rome, specializing in the exploration, production, and distribution of oil, natural gas, and renewable energy solutions. Operating across five key segments—Exploration & Production, Global Gas & LNG Portfolio, Refining & Marketing and Chemicals, Plenitude and Power, and Corporate—Eni plays a pivotal role in the global energy sector. With net proved reserves of 6.6 billion barrels of oil equivalent and an installed operational capacity of 4.5 GW, Eni is strategically positioned to meet global energy demands while transitioning toward sustainable energy solutions. The company’s diversified portfolio includes upstream oil and gas operations, midstream LNG and gas supply, downstream refining, and retail energy services, including renewables. Eni’s commitment to carbon capture, forestry conservation, and renewable energy investments underscores its focus on sustainability. As Europe’s energy landscape evolves, Eni remains a key player in balancing traditional hydrocarbon production with the shift toward low-carbon alternatives.

Investment Summary

Eni S.p.A. presents a balanced investment case with strengths in diversified energy operations, strong cash flow generation (€13.1B operating cash flow in FY 2023), and a strategic focus on LNG and renewables. However, risks include exposure to volatile oil prices (beta of 0.93), high debt levels (€34.97B total debt), and regulatory pressures in Europe’s transitioning energy market. The company’s dividend yield (~5% based on €1/share payout) is attractive, but investors should weigh its long-term transition risks against its integrated business model and LNG growth potential.

Competitive Analysis

Eni’s competitive advantage lies in its vertically integrated operations, strong LNG portfolio, and early-mover initiatives in decarbonization (e.g., carbon capture and forestry projects). Unlike pure-play oil majors, Eni’s Plenitude segment provides exposure to retail energy and renewables, diversifying revenue streams. However, it faces stiff competition from larger peers like Shell and TotalEnergies, which have greater scale and renewable investments. Eni’s refining and chemicals segment is less dominant than competitors like BP, but its strategic focus on Mediterranean and African upstream assets provides regional leverage. The company’s midstream LNG operations compete with global players like Chevron and Cheniere, though Eni’s contracts and infrastructure in Europe give it a logistical edge. While Eni’s renewables division is growing, it lags behind dedicated green energy firms. Overall, Eni’s mix of hydrocarbon stability and energy transition efforts positions it as a mid-tier integrated player with niche strengths in gas and sustainability initiatives.

Major Competitors

• Shell plc (SHEL): Shell leads in LNG capacity and renewable investments, with a broader global footprint than Eni. However, its larger scale comes with higher exposure to geopolitical risks. Shell’s aggressive energy transition strategy may pressure Eni’s market share in low-carbon solutions.
• TotalEnergies SE (TTE): TotalEnergies rivals Eni in European gas distribution and has a more advanced renewables portfolio. Its stronger balance sheet and diversified upstream assets make it a formidable competitor, though Eni retains an edge in Mediterranean upstream operations.
• BP plc (BP): BP’s downstream and chemicals operations outperform Eni’s, but its recent strategic shifts have created volatility. BP’s renewable energy investments are more aggressive, but Eni’s LNG focus provides near-term stability.
• Equinor ASA (EQNR): Equinor dominates offshore wind and European gas supply, leveraging Norway’s state backing. Eni competes closely in LNG but lacks Equinor’s renewable scale. Equinor’s lower debt profile gives it more flexibility in energy transitions.
• Repsol SA (REPYY): Repsol’s downstream and retail energy business parallels Eni’s, but its smaller upstream portfolio limits integration benefits. Repsol’s early push into biofuels and hydrogen contrasts with Eni’s LNG-heavy gas strategy.