NYSE:ENIA

Stock Analysis Report

Executive Summary

Enel Américas S.A., through its subsidiaries, operates as an electricity utility company in Argentina, Brazil, Colombia, and Peru.

Rewards

Trading at 63.2% below its fair value

Earnings are forecast to grow 4.24% per year

Earnings grew by 80.3% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Enel Américas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENIA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.9%

ENIA

2.2%

US Electric Utilities

1.5%

US Market


1 Year Return

-7.3%

ENIA

28.6%

US Electric Utilities

20.1%

US Market

Return vs Industry: ENIA underperformed the US Electric Utilities industry which returned 28.6% over the past year.

Return vs Market: ENIA underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ENIAIndustryMarket
7 Day-4.9%2.2%1.5%
30 Day-13.4%6.0%1.4%
90 Day-3.8%14.5%8.7%
1 Year-1.5%-7.3%32.8%28.6%22.7%20.1%
3 Year7.2%-4.2%57.8%42.6%50.1%40.5%
5 Year33.2%-42.2%86.3%55.1%73.1%54.1%

Price Volatility Vs. Market

How volatile is Enel Américas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Enel Américas undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENIA ($9.4) is trading below our estimate of fair value ($25.57)

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


Price To Earnings Ratio

PE vs Industry: ENIA is good value based on its PE Ratio (7.6x) compared to the Electric Utilities industry average (26.6x).

PE vs Market: ENIA is good value based on its PE Ratio (7.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ENIA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ENIA is good value based on its PB Ratio (1.5x) compared to the US Electric Utilities industry average (2.4x).


Next Steps

Future Growth

How is Enel Américas forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENIA's forecast earnings growth (4.2% per year) is above the savings rate (1.7%).

Earnings vs Market: ENIA's earnings (4.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: ENIA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ENIA's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ENIA's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENIA's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Enel Américas performed over the past 5 years?

23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENIA has high quality earnings.

Growing Profit Margin: ENIA's current net profit margins (10.7%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: ENIA's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: ENIA's earnings growth over the past year (80.3%) exceeds its 5-year average (23.8% per year).

Earnings vs Industry: ENIA earnings growth over the past year (80.3%) exceeded the Electric Utilities industry 7.3%.


Return on Equity

High ROE: ENIA's Return on Equity (17.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Enel Américas's financial position?


Financial Position Analysis

Short Term Liabilities: ENIA's short term assets ($6.3B) exceed its short term liabilities ($6.0B).

Long Term Liabilities: ENIA's short term assets ($6.3B) do not cover its long term liabilities ($10.0B).


Debt to Equity History and Analysis

Debt Level: ENIA's debt to equity ratio (53.5%) is considered high.

Reducing Debt: ENIA's debt to equity ratio has increased from 46.5% to 53.5% over the past 5 years.

Debt Coverage: ENIA's debt is well covered by operating cash flow (36.5%).

Interest Coverage: ENIA's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: ENIA has a high level of physical assets or inventory.

Debt Coverage by Assets: ENIA's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Enel Américas's current dividend yield, its reliability and sustainability?

4.59%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: ENIA's dividend (4.59%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ENIA's dividend (4.59%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: ENIA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ENIA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.8%), ENIA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENIA's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Maurizio Bezzeccheri (61yo)

1.5yrs

Tenure

0

Mr. Maurizio Bezzeccheri has been the Chief Executive Officer of Enel Américas S.A. since August 1, 2018. He was Vice President of Administrative Council at Enel Distribución Goias S.A. since March 2019 un ...


Leadership Team

NamePositionTenureCompensationOwnership
Maurizio Bezzeccheri
Chief Executive Officer1.5yrsno datano data
Aurelio Bustilho de Oliveira
Chief Financial Officer2.1yrsno datano data
Paolo Pirri
Chief Accounting Officer0yrsno datano data
Rafael de la Haza Casarrubio
Head of Investor Relations0yrsno datano data
Domingo Valdés Prieto
General Counsel & Secretary20.8yrsno datano data

2.1yrs

Average Tenure

55yo

Average Age

Experienced Management: ENIA's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patricio Gómez-Sabaini C.
Independent Director3.8yrsUS$196.00kno data
B. Francisco de Borja Acha Besga
Chairman4.7yrsno datano data
Hernán Somerville Senn
Independent Director21.1yrsUS$199.00kno data
Livio Gallo
Director3.8yrsno datano data
Enrico Viale
Director3.8yrsno datano data
Domingo Cruzat Amunátegui
Independent Director3.8yrsUS$199.00kno data
José Antonio Lleras
Director3.8yrsno datano data

3.8yrs

Average Tenure

62yo

Average Age

Experienced Board: ENIA's board of directors are considered experienced (3.8 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

Company Information

Enel Américas S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enel Américas S.A.
  • Ticker: ENIA
  • Exchange: NYSE
  • Founded: 1889
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CL$11.352t
  • Listing Market Cap: CL$14.345b
  • Shares outstanding: 76.09b
  • Website: https://www.enelamericas.com

Number of Employees


Location

  • Enel Américas S.A.
  • Santa Rosa 76
  • Santiago
  • Region Metropolitana (Santiago)
  • 8330099
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENELAMSNSE (Santiago Stock Exchange)YesCommon StockCLCLPOct 1992
ENIANYSE (New York Stock Exchange)SPONS ADR-REPR 50 COM NPVUSUSDOct 1993
NERDB (Deutsche Boerse AG)SPONS ADR-REPR 50 COM NPVDEEUROct 1993

Biography

Enel Américas S.A., through its subsidiaries, operates as an electricity utility company in Argentina, Brazil, Colombia, and Peru. The company generates, transmits, and distributes electricity using hydroelectric and thermal energy sources. As of December 31, 2018, it had 11,257 megawatts of installed generation capacity and 24.5 million distribution customers. The company was formerly known as Enersis Américas S.A. and changed its name to Enel Américas S.A. in December 2016. Enel Américas S.A. was founded in 1889 and is headquartered in Santiago, Chile. Enel Américas S.A. operates as a subsidiary of Enel S.p.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:39
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.