ENIC - Enel Chile: A Sound Investment In A Dicey Country
2024-04-10 06:13:47 ET
Summary
- Enel Chile is a leading South American utility with a portfolio of 8.5GW of installed capacity, including 6.5GW from renewable sources.
- The company has achieved remarkable financial results, with current EV/EBITDA of 6.51x and P/E of 5.68x.
- It offers a dividend yield of over 10%, and is currently undervalued by 70% according to my DCF analysis.
- Dependence on the Chilean economy, however, is a risk that cannot be ignored.
Let's continue our focus on renewables with Enel Chile S.A. ( ENIC ), one of the largest utilities in South America, 64% owned by Enel SpA ( ENLAY ), which is one of the world's largest producers of electricity from renewable sources. ENIC has a portfolio of 8.5GW of installed capacity, including 6.5GW from hydro, solar, geothermal, wind, and storage, and has more than 2 million customers. It holds a dominant position in electricity sales in Chile, with 42% market share, and keeps investing in the construction of new plants, mainly solar....
Enel Chile: A Sound Investment In A Dicey Country