Enlight Renewable Energy Ltd. Ordinary Shares (ENLT)

FairStock Score: 29/100 — RISKY

Key Financials

Strengths

• Revenue growth of 90.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($17) with negative 420% margin of safety—limited downside protection
• High leverage at 2.58x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Enlight Renewable Energy Ltd. Ordinary Shares is a mid-cap utilities company valued at $12.3 billion. The business generates $489 million in annual revenue with a 9.0% net margin. From a quality standpoint, Enlight shows distressed Altman Z-Score of 1.1 warrants caution and modest 9% ROE. On valuation, the stock is commanding a steep 87.8x multiple, with trades far above its Graham Number ($17) with no margin of safety. Growth dynamics show revenue growing at 90.8% and profit growth of 176.6%. Our composite FairStock Score of 29/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Enlight's 91% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 88x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer