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ENCE Energía y Celulosa, S.A (ENC) Fair Value & Analysis

Basic Materials · ES · Market cap €580M

EE ENCE Energía y Celulosa, S.A ENC · MC
Price€2.59
Fair Value€2.46
Upside-5.2%
Quality32/100
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Weak Growth
Loss-making · -10.3% net margin
Moderate debt · negative free cash flow
Trails peers (1/12)
Narrow moat 12/100
Evidence: Low Range €0.9600 – €3.94 Share as image

Fair value as of: Jul 19, 2026

From 4 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from €1.23 to €2.46 (+100.0%) since Jun 25, 2026. Share price +10.6% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The model range is unusually wide (€0.9600 to €3.94). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
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Price vs Fair Value (5 years)

€3.57 €1.61 Fair Value €2.46 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range €1.61 – €3.57 · fair‑value band €0.9600 – €3.94 · the €2.59 price screens above the €2.46 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

ENCE Energía y Celulosa, S.A (ENC) currently trades at €2.59, while our model-based Fair Value estimate is €2.46, implying the stock looks roughly 5.2% fairly valued today. The Quality Score stands at 32/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, ENCE Energía y Celulosa, S.A generated revenue of €726M at a net margin of -10.3%. Revenue declined 17.7% year over year. It earns a return on equity of -14.3%. Net debt stands at €424M. Fundamentals as of Jul 19, 2026

Our scenario range runs from €0.9600 (bear case) to €3.94 (bull case); at €2.59, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 21% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 10% fair-value upside, at -5%, ENC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Gordon GGM €0.0100 €0.0100 €0.0200 70
DDM Multi-Stage €0.0100 €0.0200 €0.0200 61
EV/EBITDA €1.38 €2.12 €2.87 54
All 4 models by family
Dividend Discount
Gordon GGM €0.0100 €0.0100 €0.0200 70
DDM Multi-Stage €0.0100 €0.0200 €0.0200 61
Multiples
EV/EBITDA €1.38 €2.12 €2.87 54
Asset-Based
NCAV (Graham) €0.9900 €1.32 €1.97 50

Widest divergence: Multiples (€2.12) versus Dividend Discount (€0.0100). Highest evidence: Gordon GGM (70).

Key figures & financial health

Revenue (TTM) €726M
Revenue growth (YoY) -17.7%
Net margin -10.3%
Return on equity -14.3%
Free cash flow −€42.4M FY2025
Operating margin -20.6%
More key figures
EPS (TTM) €-0.3000
EPS growth (YoY) -66.7%
Net debt €424M FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 32/100

Of which business quality 31 · Market factors (momentum, volatility) 54

Profitability 7
Margins and returns on capital today
Quality Growth 4
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 38
Distance to the 52-week high (market factor)
Net Issuance 88
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

ENCE Energía y Celulosa, S.A., together with its subsidiaries, produces and sells hardwood pulp and renewable energy in Spain, Germany, Poland, Italy, the Netherlands, the United Kingdom, Greece, France, Turkey, and internationally. It operates through Cellulose, Forest Heritage and others segments.

Full company description

ENCE Energía y Celulosa, S.A., together with its subsidiaries, produces and sells hardwood pulp and renewable energy in Spain, Germany, Poland, Italy, the Netherlands, the United Kingdom, Greece, France, Turkey, and internationally. It operates through Cellulose, Forest Heritage and others segments. The company offers bleached eucalyptus kraft pulp; and forest land management and forestry services, as well as producing renewable energy using agricultural and forestry biomass sources; and producing timber for pulp. In addition, it is involved in generating, selling electric energy and carbon credits; developing biogas plants; selling of biomass; clean energy management; gas trading; research and development; purchase and sale of timber; waste management; electricity management; biogas, biomethane, and fertilizer management; and management of forest waste. The company was formerly known as Grupo Empresarial ENCE, S.A. and changed its name to ENCE Energía y Celulosa, S.A. in April 2012. ENCE Energía y Celulosa, S.A. was founded in 1957 and is headquartered in Madrid, Spain.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ENCE Energía y Celulosa, S.A reported revenue of €747M in FY2025 versus €820M in FY2021, a compound −2.3%/yr. Reported net income was −€54.5M in FY2025.

Growth Quality 7/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€747M
Latest YoY
−14.1%
Avg. growth/yr (3Y)
−9.4%
Avg. growth/yr (5Y)
+1.1%
Avg. growth/yr (25Y)
−17.7%
Revenue −2.3%/yr
FY21 €820M
FY22 €1.0B
FY23 €830M
FY24 €870M
FY25 €747M
Net income
FY21 −€190M
FY22 €247M
FY23 −€24.7M
FY24 €31.6M
FY25 −€54.5M

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Cite: Fair Value Calculator (2026). "ENCE Energía y Celulosa, S.A Fair Value". https://www.fairvalue-calculator.com/stock/ENC

Peer Group

Paper & Paper Products · 113 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 32 · Bottom 25%
Fair Value upside −5% · Above median
Return on assets -1% · Bottom 25%
Net margin (TTM) -10% · Bottom 25%
Operating margin (TTM) -21% · Bottom 25%
Revenue growth -18% · Bottom 25%
Debt / equity 0.91× · Higher than 75% of peers

Valuation Multiples vs Paper & Paper Products median · lower = cheaper

P/B 1.40× · Pricier than 75% of peers
P/S (TTM) 0.92× · Pricier than median
EV/EBITDA 16.9× · Pricier than 75% of peers
PEG 2.06× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 26 · sector 20
FUTURE 0 · sector 7
PAST 0 · sector 12
HEALTH 55 · sector 91
DIVIDEND 0 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Klabin S.A KLBN11 R$17.58 R$3.89 -78%
UPM-Kymmene Oyj UPM €23.45 €15.47 -34%
Suzano S.A SUZB3 R$41.70 R$138.01 +231%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAB kr 103.00 kr 49.40 -52%
Shandong Sunpaper Co 002078 ¥14.13 ¥17.29 +22%
Holmen AB HOLMB kr 305.40 kr 217.72 -29%
Nine Dragons Paper (Holdings) Limited 2689 HK$7.55 HK$8.73 +16%
Empresas CMPC S.A CMPC 1,078 CLP 1,269 CLP +18%
Xianhe Co 603733 ¥22.05 ¥24.32 +10%
Billerud AB BILL kr 68.70 kr 48.60 -29%

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Frequently asked questions

Is ENCE Energía y Celulosa, S.A (ENC) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of €2.46 versus a price of €2.59, about −5% (fairly valued).
What is the fair value of ENC?
Our model-based fair value for ENCE Energía y Celulosa, S.A is €2.46 (as of Jul 19, 2026), built from audited fundamentals. The current price is €2.59.
What is the quality score of ENC?
ENCE Energía y Celulosa, S.A has a Quality Score of 32/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of ENCE Energía y Celulosa, S.A (ENC)?
ENCE Energía y Celulosa, S.A reported trailing-twelve-month revenue of about €726M (latest available figure, as of Jul 19, 2026).
What is the net profit margin of ENC?
The net profit margin of ENCE Energía y Celulosa, S.A is about -10.3%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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