Enagás has been one of the Spanish equities that have appreciated the most in the last twelve months. To the point of offering a profitability of just over 20% in this period and above some very relevant stock market proposals. In any case, a change in trend has been noted in recent trading sessions that may compromise its clear upward trend, at least in the medium and long term. Either way, it is one of those values that must be kept on the radar in case it is necessary to include it in the stock portfolio for the next few months.
The corrections that it has developed in recent weeks have also been certainly relevant as they have corrected its price at 10% levels. Showing a certain weakness in the comparative positions that had been imposed with great ease at the beginning of the year. Within a general context, in a sector that is one of the most bullish such as energy, along with other values such as Red Eléctrica Española, Endesa, Iberdrola and Naturgy and where some of them have been placed in the figure of free rise. It is the best of all for the interests of small and medium investors since it indicates that there is no resistance ahead.
While on the other hand, Enagás is one of those considered as defensive or conservative. Acting as a safe haven in the face of instability scenarios in the equity markets. Where a good part of the capital of small and medium investors goes to give a little peace of mind to their positions on the stock market. Not surprisingly, this is not a security that stands out for its excessive volatility in the configuration of its prices. Despite the fact that in the last stock market sessions it has developed more intense movements than usual in this sector of Spanish equities.
Distribution of a very profitable dividend
Another of the great characteristics of this value of the Ibex 35 is the high profitability that it has in the dividend that it distributes among its shareholders. With an interest rate that is currently 6% and above those that offer this remuneration. It is an annual payment that is very stable every year and is distributed twice a year. With a profitability much higher than that offered by the main banking products. Among them, fixed-term deposits, high-income accounts or even corporate bonds themselves.
This is one of the main reasons why it is a highly contracted value for the most defensive profiles. To create a stable and secure savings bag for the medium and long term which is, after all, one of its purposes. While on the other hand, we cannot forget the fact that this is a company with a recurring line of business and therefore few negative surprises can occur from now on. Where this value is not expected to have large falls in the stock market, but not large revaluations from now on.
To have it in your portfolio
If this special value of the Ibex 35 is characterized by something, it is because of the stability that it can offer at the moment to the investment portfolio. Of course, it is a bet that can be very profitable for a very long period of time. On the other hand, usually appreciates almost every year, with it is true that not with great intensity. Of course, with this market value you will not become a millionaire overnight. As with other more speculative representatives of national equities and that can increase (or decrease) your capital from these investment approaches. This is undoubtedly a factor that you should take into account from now on.
While on the other hand, it is also necessary to emphasize the fact that Enagás is very present in the securities portfolio by the financial agents or intermediaries. Few of them take their eyes off this value that is one of the fixed values in broker bets, as you will be able to realize at any time of the year. In any case, in the end it is a decision that you will have to make personally since there is a lot of money that is at stake in this kind of operations in the financial markets in equities. Beyond how your shares may evolve in the next sessions on the stock market.
Target on your prices
In any case, the fundamental objective at Enagás is to reach or at least approach levels of 30 euros per share. A goal that could be reached within a few years with great ease. There are no other objectives in sight since their supports and resistances are very well defined and of course they do not hold big surprises for the personal interests of small and medium investors. As long as they know, it interprets the evolution of this value in its technical analysis. On the other hand, it is not too complicated to make the right decision at all times, which is, after all, what is involved in these situations.
It should also be noted that this value of the energy sector is not very conducive to developing trading operations due to the little difference that usually exists between its maximum and minimum prices. Where it usually does not exceed 2% or even 3%. In this sense, it does not offer big surprises in the expectations of small and medium investors. If not, on the contrary, they offer more security than in other more volatile securities and that allow making operations on the stock market more flexible. This is one of the aspects that you should take into account from now on if you want to operate with guarantees of success in this national equity proposal.
On the other hand, Enagás is at the expense of the decisions that the next government that will be formed may take. Since we cannot forget that they are in a sector that is highly regulated and this factor can harm the interests of the company in the conformation of its prices to the market. Much more than you might think from the outset, as analysts in the equity market warn. With the odd surprise on the horizon for the next few years and that may affect its valuation on the stock market. To the point that it could enter a very dangerous period for investors who have taken positions in the value in recent years.
Results and investments in Enagás
The gas company has obtained a profit after tax (BDI) of 2019 million euros in the first quarter of 103,9. This figure represents 0,2% higher than that of the same period of the previous year. Where it is shown that the result registered in the first quarter of 2019 is in line with the established objectives for the year as a whole and is mainly due to the good performance of the contribution of the investees, which is around 25% of the BDI, and to the exhaustive control of operating and financial expenses.
With regard to investments, Enagás' main milestone in the first quarter was the alliance with Blackstone Infrastructure Partners and the Singapore Sovereign Fund (GIC) to acquire a stake in the US company Tallgrass Energy. This operation reinforces the company's growth strategy and the dividend sustainability in the medium and long term.
In addition, the Trans Adriatic Pipeline (TAP) project, which links Turkey with Italy through Greece and Albania, has a degree of progress in its construction of 85,7%. Enagás has a 16% stake in this key infrastructure for the security of energy supply in Europe. This is one of the reasons why a good part of the small and medium investors have turned their eyes to this company that is integrated in the selective index of national equities, the Ibex 35. With pressure from comparative positions with respect to to the saleswomen.
Gas demand
The total demand for natural gas in Spain increased 2,4% in the first quarter compared to the same period of the previous year. Industrial demand, which has accounted for about 55% of the total demand for natural gas during the first quarter, continues its good evolution and grew around 5% levels. In this sense, it should be noted that so far this year, the total demand for natural gas is growing by 3,9% and the increase in demand for the industrial sector is at levels very close to 4,4 %. With pressure from the comparator positions with respect to the sellers. This operation reinforces the company's growth strategy and the dividend sustainability in the medium and long term.