Bankinter | The board of directors of Endesa has approved two different tranches of buybacks. On the one hand, a first tranche of €17.3 million intended to comply with the flexible remuneration programmes for group employees, with a maximum of 1.11 million shares. The execution period will run from 28 March to 14 April.
The second tranche is valued at a maximum amount of €500 million and the objective is to reduce the share capital through the amortisation of the acquired own shares. This second tranche will be implemented after the general shareholders’ meeting called for 29 April.
Bankinter analysis team’s view: Good news for the company, which thus increases shareholder remuneration. With the €500M from the second tranche, the number of shares would be reduced by -2%. With fewer shares in circulation, earnings per share increase, which drives up the revaluation of the rest of the shares.These share purchases form part of the Share Buyback Programme that Endesa’s shareholders’ meeting approved in 2024. The programme set a maximum amount of €2 billion to be distributed in several tranches, such as those now approved, which would be activated until 31 December 2027.
Endesa is one of our favourite stocks in the sector and forms part of our model portfolio of Spanish shares. At current prices it is trading at a 2025 P/E ratio of 13.3x and with a dividend yield of 5.5% . If we take into account the dividends included in the 2027 Strategic Plan (€4 billion) and the €2 billion of the Share Buyback Plan, shareholders would receive a total of €6 billion in 3 years, which represents 24% of its current market capitalisation.
