ENLT Stock Risk & Deep Value Analysis
Enlight Renewable Energy Ltd
DVR Score
out of 10
What You Need to Know About ENLT Stock
We analyzed Enlight Renewable Energy Ltd using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran ENLT through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
ENLT Risk Analysis & Red Flags
What Could Go Wrong
The company's high debt-to-equity ratio (2.03) and low current ratio (0.67) expose it to significant financial risk. If economic conditions tighten, interest rates rise, or project financing becomes more challenging, ENLT could struggle to fund its ambitious growth pipeline or manage its existing debt, potentially leading to increased dilution or a sharp decline in investor confidence and share price.
Risk Matrix
Overall
Aggressive
Financial
High
Market
Low
Competitive
Medium
Execution
Medium
Regulatory
Medium
Red Flags
- ⚠
Current ratio (0.67) and Quick ratio (0.67) indicate weak short-term liquidity.
- ⚠
Debt-to-equity ratio (2.03) signifies high financial leverage.
- ⚠
PEG ratio (10.30) and Trailing P/E (81.34) are extremely high, suggesting significant future growth is already priced in.
- ⚠
Median analyst price target ($51.67) is substantially below the current price ($87.57), indicating analyst skepticism.
- ⚠
Short interest increased by 28.2% as of March 13, 2026.
Upcoming Risk Events
- 📅
Higher-than-expected interest rate increases impacting project financing costs
- 📅
Delays in regulatory approvals or permitting for new projects
- 📅
Significant fluctuations in energy prices affecting PPA terms or profitability
When to Reconsider
- 🚪
Quarterly revenue growth drops below 20% YoY for two consecutive quarters.
- 🚪
Current ratio falls below 0.5, or Debt-to-Equity exceeds 2.5.
- 🚪
Sustained negative operating cash flow or significant project delays/cancellations.
Unlock ENLT Risk Analysis & Red Flags
Create a free account to see the full analysis
Investment Thesis
Enlight Renewable Energy is a high-growth mid-cap leader in the global energy transition, boasting impressive profitability growth (142% net income YoY) and operational strength in a massive addressable market. Its expertise in developing and operating large-scale renewable projects, supported by a favorable market trend and strong price momentum, positions it for potential 10x growth, despite facing high valuation and balance sheet leverage.
Is ENLT Stock Undervalued?
Unlock the full AI analysis for ENLT
Get the complete DVR score, risk analysis, and more
Unlock the full report
Create a free account to see the DVR score, risk flags, and AI analysis.
ENLT Price Targets & Strategy
12-Month Target
$118.20
Bull Case
$145.00
Bear Case
$60.00
Valuation Basis
Based on 60x FY2026E EPS of $1.97 (assuming 70% EPS growth from FY2025 EPS of $1.16/share).
Entry Strategy
Consider dollar-cost averaging on dips towards $75-$80, which could serve as a psychological support level. The 50-day SMA or significant price retracements below current levels could offer more attractive entry points.
Exit Strategy
Take partial profits if the stock reaches $140-$150. A stop-loss should be set below $70, particularly if critical balance sheet metrics or growth rates deteriorate significantly.
Portfolio Allocation
7-10% for aggressive risk tolerance, 3-5% for moderate risk tolerance, given its growth potential but high financial risk.
Price Targets & Strategy
Upgrade to Premium for price targets and entry/exit strategies
Is ENLT Financially Healthy?
Valuation
P/E Ratio
92.09
Forward P/E
193.80
EV/EBITDA
38.00
PEG Ratio
2.30
Price/Book
1.90
Price/Sales
6.08
Profitability
Gross Margin
76.92%
Operating Margin
57.05%
Net Margin
22.69%
Return on Equity
8.82%
Revenue Growth
46.01%
EPS
$1.03
Balance Sheet
Current Ratio
1.20
Quick Ratio
1.06
Debt/Equity
2.64
Other
Beta (Volatility)
1.52
Does ENLT Have a Competitive Moat?
Sign in to unlockMoat Rating
🛡️ Narrow
Moat Trend
Expanding
Moat Sources
3 Identified
The moat is likely to persist due to the high capital requirements, complex regulatory landscape, and specialized expertise needed for large-scale renewable energy projects. Established developers like Enlight benefit from economies of scale, strong supplier relationships, and a proven track record, making it difficult for new entrants to compete effectively.
Moat Erosion Risks
- •Significant shifts in government energy policy or subsidy structures.
- •Rapid technological advancements that disrupt existing project economics or render current assets less competitive.
- •Intensified competition from large diversified energy companies or new, well-funded entrants.
ENLT Competitive Moat Analysis
Sign up to see competitive advantages
ENLT Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral. While a high-growth sector, no specific social media trends are highlighted, suggesting a balanced retail interest.
Institutional Sentiment
Neutral. Analyst consensus is 'Hold' (3 Buy, 2 Hold, 2 Sell), and median price targets are significantly below the current stock price, indicating caution. However, institutional ownership is 38.89%, suggesting a notable long-term interest.
Insider Activity (Form 4)
No Form 4 filings reported for last 90 days (January 25-April 25, 2026).
Options Flow
Normal options activity. No unusual put/call ratio or large block trades flagged in the provided intelligence.
Earnings Intelligence
Next Earnings
2026-05-05
Surprise Probability
Medium
Historical Earnings Pattern
Q4 2025 EPS beat consensus despite a revenue miss, and the stock hit a 1-year high after the report. This suggests the market reacts positively to profit beats and strong growth narratives, potentially overlooking minor revenue misses if profitability is robust.
Key Metrics to Watch
Competitive Position
Top Competitor
NEE (NextEra Energy, Inc.)
Market Share Trend
Gaining. While specific market share data is not available, its robust 46% YoY revenue growth and 142% net income growth suggest it is successfully capturing new opportunities and expanding its presence in the renewable energy market.
Valuation vs Peers
ENLT trades at a significant premium to many established utility-scale renewable energy developers/operators, particularly when considering its P/E and PEG ratios. This premium is justified by its higher growth rates relative to larger, more mature peers, but implies high expectations.
Competitive Advantages
- •Proven expertise in complex renewable energy project development, from permitting to operation.
- •Scale and access to capital for large-scale solar and wind projects, despite current D/E ratio.
- •Long-term Power Purchase Agreements (PPAs) providing stable and predictable revenue streams.
Market Intelligence
Get sentiment, earnings intel, and peer analysis with Premium
What Could Drive ENLT Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings Report on May 5, 2026
- •Updates on project development milestones and new PPAs
Medium-Term (6-18 months)
- •Expansion into new geographic markets (e.g., Europe, US)
- •Major project inaugurations increasing operational capacity and revenue streams
- •Strategic partnerships to accelerate project financing or technology integration
Long-Term (18+ months)
- •Continued acceleration of global renewable energy adoption and supportive policy frameworks
- •Technological advancements in solar/wind efficiency improving project economics
- •Potential for market consolidation or M&A activity within the renewable energy sector
Catalysts & Growth Drivers
Upgrade to Premium to see catalysts
What's the Bull Case for ENLT?
- ✓
Sustained acceleration in revenue growth and new project pipeline announcements.
- ✓
Improvement in liquidity ratios (Current Ratio > 1.0) and gradual deleveraging.
- ✓
Continued positive surprises in EPS and strong forward guidance from management.
Bull Case Analysis
See what could go right with Premium
📊 Explore More Stock Analysis
Get comprehensive Deep Value Reports for thousands of stocks. Research risk, financial health, and investment potential with our AI-powered analysis.
How Enlight Renewable Energy Ltd Makes Money
Enlight Renewable Energy specializes in the development, financing, construction, and operation of utility-scale renewable energy projects, predominantly solar photovoltaic and wind farms. The company generates revenue by producing electricity from its operational assets and selling it to governmental entities, utilities, and large corporate customers through long-term Power Purchase Agreements (PPAs). This business model provides stable, predictable revenue streams from clean energy production, benefiting from the global shift towards decarbonization.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Enlight Renewable Energy Ltd (ENLT)?
As of April 25, 2026, Enlight Renewable Energy Ltd has a DVR Score of 8.4 out of 10, placing it in the "Hidden Gem" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Enlight Renewable Energy Ltd?
Enlight Renewable Energy Ltd's market capitalization is approximately $36.4B..
What is the risk level for ENLT stock?
Our analysis rates Enlight Renewable Energy Ltd's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of ENLT?
Enlight Renewable Energy Ltd currently has a price-to-earnings (P/E) ratio of 92.1. This is above the market average, suggesting the stock may be priced for high growth expectations.
Is Enlight Renewable Energy Ltd's revenue growing?
Enlight Renewable Energy Ltd has reported revenue growth of 46.0%. The company is showing strong top-line momentum.
Is ENLT stock profitable?
Enlight Renewable Energy Ltd has a profit margin of 22.7%. This indicates strong profitability.
How often is the ENLT DVR analysis updated?
Our AI-powered analysis of Enlight Renewable Energy Ltd is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 25, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for ENLT (Enlight Renewable Energy Ltd) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.