Enel Chile Offers An Interesting Yield For A Relatively Derisked Strategic Plan

2025-01-21 22:12:25 ET

Summary

• Enel Chile is the largest electricity generator in Chile and manages the distribution network of the capital Santiago.
• The company suffered in the post pandemic period because of uncertain regulation, accumulation of receivables, and the mix of a supply gap position in electricity with high LNG prices.
• Now the company is more stable, the regulations have become more friendly, and receivables are receding.
• The company is decreasing its sold exposure to electricity, implying a much more controlled revenue and cost environment going forward.
• Based on company expectations, the stock could offer an earnings yield of 12.5% to 17.5% in 2027, compared to today's price. This makes the name interesting.

Enel Chile ( ENIC ) is the largest electricity generator in Chile and manages the distribution network of the capital Santiago....

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