Research Article

Do We Finally Have A "Green Dot" Renewable Energy Stock?

Apr 11, 2024

Updates

Business Overview / Sources of Revenue

Enlight Renewable Energy Ltd is a global renewable energy company founded in 2008 that develops, constructs, finances, and operates utility-scale renewable energy projects across three continents - America, Europe, and Asia[2][4]. The company specializes in three core renewable energy segments: solar energy, wind energy, and energy storage[4].

Enlight functions as a vertical integration company operating across the entire energy production chain, which includes: 1) initiating projects by securing suitable land, 2) development and planning with regulatory clearance, 3) financing and installation including grid connection, and 4) electricity sales, operation and maintenance[5]. The company generates revenue primarily through selling the electricity produced by its operational renewable energy facilities[5].

Enlight is publicly traded on both Nasdaq and the Tel Aviv Stock Exchange (TA-35)[4]. The company entered the U.S. market in 2021[3].

Revenue Growth Potential and Recurrence

Enlight Renewable Energy Ltd (ENLT) generates a large share of recurring revenue, benefiting from long-term power purchase agreements and the stable, predictable cash flows typical of renewable energy operators[4]. The company has shown robust recent growth: Q1 2025 revenue rose 39% year-over-year, with adjusted EBITDA up 84% and net income up 316%[2][3]. For full-year 2024, revenue increased 53%[1]. Management and industry analysts expect continued growth driven by new project additions and rising electricity demand, particularly in the U.S.[5]. Average annual revenue growth in years 6–10 is projected at 1.7%[4], but near-term annualized growth rates are much higher: recent years have seen over 30% growth, likely to moderate but remain strong over the next 5+ years as the project pipeline matures[1][2].

Economic Moat Factors

Enlight Renewable Energy Ltd (ENLT) demonstrates some elements of an economic moat, though not a strong or unique one. The company achieves economies of scale through its international presence and vertical integration across the entire renewable energy value chain—from development and financing to operation and electricity sales—which can reduce costs and streamline project execution[3][5]. Its expertise, diversified projects, and established track record provide a moderate degree of brand power and reliability in securing new projects[3]. However, switching costs for customers are relatively low in the utility sector, and network effects are minimal since electricity remains a largely commoditized product[5]. Unique assets may exist in the form of particular project locations and local regulatory approvals, but these are not insurmountable barriers for competitors. Overall, Enlight possesses a moderate moat based on operational execution and scale, rather than on insurmountable competitive advantages[3][5].

Leadership

Enlight Renewable Energy is led by co-founder Gilad Yavetz, who has served as CEO since the company's inception in 2008[1][3]. He transformed the company from a small Israeli developer to a global renewable energy enterprise[3]. The leadership team includes Amit Paz (Chief Innovation Officer) and formerly Zafrir Yoeli (SVP Business Development until 2022), both co-founders alongside Yavetz[1]. The company's Board of Directors consists of eight members from Israel's business community, with Yair Seroussi serving as Chairman[2]. Seven of the eight board members are considered independent[2]. Information about Yavetz's ownership stake is not provided in the search results.

Financial Health

Enlight Renewable Energy Ltd (ENLT) carries a high debt-to-equity ratio of about 209% and holds $387.4M in cash against $3.01B in debt, indicating a modest cash-to-debt ratio and a leveraged balance sheet[5]. The company’s short-term assets exceed its short-term liabilities but do not cover its long-term liabilities[5]. While the business shows strong revenue and net income growth, it is not a net repurchaser—historically, the company has issued more shares than it has repurchased. There is no recent free cash flow margin disclosed in the available sources[5].

Last updated Jun 8, 2025