Stock in Focus: Enel Chile S.A. (ENIC)

Company Profile:

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation Business and Distribution Business segments. It transmits and distributes electricity in 33 municipalities of the Santiago metropolitan region. As of December 31, 2016, the company had 6,351 megawatts of installed capacity with 111 generation units, including 38 hydroelectric, 22 thermal, and 51 wind powered generation units. It distributed electricity to approximately 1.8 million customers, including residential, commercial, industrial, governmental, and toll customers. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in November 2016. The company was founded in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. is a subsidiary of Enel Iberoamérica S.R.L.

Recent News:

On Feb. 16, 2018, the company announced the commencement of its concurrent tender offers for shares of common stock and American Depositary Shares of its subsidiary Enel Generación Chile S.A. .

On Feb. 15, 2018, the company announced the launch of the preemptive rights offering in connection with the capital increase approved by the company’s shareholders on December 20, 2017, as part of a proposed corporate reorganization of Enel Chile.

For the quarter ended September 30, 2017, the company reported revenues of USD 988.70 million, net earnings of USD 121.53 million.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ENIC’s trengths can be seen in its better growth, strong profitability and better solvency compared with its peers. Its revenue and net income have increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic Oscillator. The RSI is strong in the bullish zone and the MACD is trying to cross back up. We rate Enel Chile S.A. (ENIC) a STRONG BUY.

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