Engie Energia Chile (SNSE:ECL) - Share price, News & Analysis

Q: What is the Fair Price of ECL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ECL (CLP352) is trading below our estimate of [[fair value]] (CLP4704.68)

ECL fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	5/6
Financial Health	1/6
Dividends	0/6

ECL Stock Overview

Engie Energia Chile S.A. engages in the generation, transmission, and supply of electricity to industrial, power distribution, and mining sectors in Chile.

Rewards

Trading at 92.5% below our estimate of its fair value

Earnings are forecast to grow 37.18% per year

Earnings grew by 57.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Engie Energia Chile Competitors

Empresa Eléctrica Pehuenche

SNSE:PEHUENCHE

CL$692.3b

Enel Distribucion Chile

SNSE:ENELDXCH

CL$1.0t

Enel Chile

SNSE:ENELCHILE

CL$1.4t

Empresa Eléctrica de Magallanes

SNSE:EDELMAG

CL$76.5b

Price History & Performance

Summary of all time highs, changes and price drops for Engie Energia Chile
Historical stock prices
Current Share Price	CL$352.00
52 Week High	CL$654.99
52 Week Low	CL$342.00
Beta	0.64
1 Month Change	-12.10%
3 Month Change	-24.46%
1 Year Change	-37.91%
3 Year Change	-71.55%
5 Year Change	-72.38%
Change since IPO	112.05%

Recent News & Updates

Mar 08

Engie Energia Chile (SNSE:ECL) Could Be Struggling To Allocate Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...

Feb 01

Is Engie Energia Chile (SNSE:ECL) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

	ECL	CL Electric Utilities	CL Market
7D	-3.4%	-0.04%	0.1%
1Y	-37.9%	-30.9%	-9.4%

Return vs Industry: ECL underperformed the CL Electric Utilities industry which returned -30.9% over the past year.

Return vs Market: ECL underperformed the CL Market which returned -9.4% over the past year.

Price Volatility

Is ECL's price volatile compared to industry and market?
ECL volatility
ECL Average Weekly Movement	4.8%
Electric Utilities Industry Average Movement	4.7%
Market Average Movement	4.0%
10% most volatile stocks in CL Market	7.3%
10% least volatile stocks in CL Market	1.5%

Stable Share Price: ECL is not significantly more volatile than the rest of CL stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ECL's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	867	Axel Leveque	https://www.engie-energia.cl

Engie Energia Chile S.A. engages in the generation, transmission, and supply of electricity to industrial, power distribution, and mining sectors in Chile. It generates power through thermal, wind, solar, and hydroelectric power plants. The company is also involved in the transportation of natural gas; and operation of two ports.

Engie Energia Chile Fundamentals Summary

How do Engie Energia Chile's earnings and revenue compare to its market cap?
ECL fundamental statistics
Market Cap	US$395.63m
Earnings (TTM)	US$68.70m
Revenue (TTM)	US$1.56b

5.8x

P/E Ratio

0.3x

P/S Ratio

Is ECL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ECL income statement (TTM)
Revenue	US$1.56b
Cost of Revenue	US$1.39b
Gross Profit	US$170.32m
Other Expenses	US$101.62m
Earnings	US$68.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.065
Gross Margin	10.89%
Net Profit Margin	4.39%
Debt/Equity Ratio	50.5%

How did ECL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ECL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ECL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ECL. This is calculated by dividing ECL's market cap by their current preferred multiple.
What is ECL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$395.63m

ECL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	4.6x
PEG Ratio	0.2x

Price to Earnings Ratio vs Peers

How does ECL's PE Ratio compare to its peers?

ECL PE Ratio vs Peers

The above table shows the PE ratio for ECL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19.3x
PEHUENCHE Empresa Eléctrica Pehuenche	6.6x	n/a	CL$692.3b
ENELDXCH Enel Distribucion Chile	45.7x	n/a	CL$1.0t
ENELCHILE Enel Chile	14.2x	29.4%	CL$1.4t
EDELMAG Empresa Eléctrica de Magallanes	10.7x	n/a	CL$76.5b
ECL Engie Energia Chile	5.8x	37.2%	CL$370.8b

Forward PE

Price-To-Earnings vs Peers: ECL is good value based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

How does ECL's PE Ratio compare vs other companies in the South American Electric Utilities Industry?

Price-To-Earnings vs Industry: ECL is good value based on its Price-To-Earnings Ratio (5.8x) compared to the CL Electric Utilities industry average (10.7x)

Price to Earnings Ratio vs Fair Ratio

What is ECL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ECL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.8x
Fair PE Ratio	10.5x

Price-To-Earnings vs Fair Ratio: ECL is good value based on its Price-To-Earnings Ratio (5.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.5x).

Share Price vs Fair Value

What is the Fair Price of ECL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ECL (CLP352) is trading below our estimate of fair value (CLP4704.68)

Significantly Below Fair Value: ECL is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: ECL is good value based on its PEG Ratio (0.2x)

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Future Growth

How is Engie Energia Chile forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

37.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECL's forecast earnings growth (37.2% per year) is above the savings rate (7.7%).

Earnings vs Market: ECL's earnings (37.2% per year) are forecast to grow faster than the CL market (3.3% per year).

High Growth Earnings: ECL's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ECL's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: ECL's revenue is forecast to decline over the next 3 years (-1.5% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ECL's Return on Equity is forecast to be low in 3 years time (8.3%).

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Past Performance

How has Engie Energia Chile performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ECL has high quality earnings.

Growing Profit Margin: ECL's current net profit margins (4.4%) are higher than last year (3.2%).

Past Earnings Growth Analysis

Earnings Trend: ECL's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: ECL's earnings growth over the past year (57.9%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: ECL earnings growth over the past year (57.9%) exceeded the Electric Utilities industry 15.3%.

Return on Equity

High ROE: ECL's Return on Equity (3.1%) is considered low.

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Financial Health

How is Engie Energia Chile's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ECL's short term assets ($573.7M) exceed its short term liabilities ($382.5M).

Long Term Liabilities: ECL's short term assets ($573.7M) do not cover its long term liabilities ($1.4B).

Debt to Equity History and Analysis

Debt Level: ECL's net debt to equity ratio (46.6%) is considered high.

Reducing Debt: ECL's debt to equity ratio has increased from 36.5% to 50.5% over the past 5 years.

Debt Coverage: ECL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ECL's interest payments on its debt are not well covered by EBIT (2.6x coverage).

Balance Sheet

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Dividend

What is Engie Energia Chile current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

17.04%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ECL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ECL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ECL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ECL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: ECL is not paying a notable dividend for the CL market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ECL has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Axel Leveque (51 yo)

7.83yrs

Tenure

Mr. Axel Leveque has been the Chief Executive Officer of Engie Energia Chile S.A. (alternate anmeE-CL S.A.) since September 1, 2014. Mr. Leveque serves as General Manager of Edelnor Transmision S.A. (forme...

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31