Buy Or Sell Opportunity • Aug 13
Now 20% undervalued Over the last 90 days, the stock has risen 4.8% to CL$940. The fair value is estimated to be CL$1,178, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.0% over the last 3 years. Earnings per share has grown by 6.1%. Revenue is forecast to grow by 5.6% in 2 years. Earnings are forecast to grow by 3.4% in the next 2 years. Buy Or Sell Opportunity • Jul 21
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.7% to CL$907. The fair value is estimated to be CL$1,137, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.0% over the last 3 years. Earnings per share has grown by 6.1%. Revenue is forecast to grow by 5.6% in 2 years. Earnings are forecast to grow by 3.4% in the next 2 years. New Risk • May 25
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 75% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (75% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 22
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: CL$30.70 (up from CL$25.09 in 1Q 2025). Revenue: CL$210.5b (up 6.6% from 1Q 2025). Net income: CL$30.7b (up 22% from 1Q 2025). Profit margin: 15% (up from 13% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) exceeded analyst estimates by 5.1%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, while revenues in the Water Utilities industry in South America are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • May 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to CL$889. The fair value is estimated to be CL$1,123, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Earnings per share has grown by 8.1%. For the next 3 years, revenue is forecast to grow by 4.3% per annum. Earnings are also forecast to grow by 5.2% per annum over the same time period. Major Estimate Revision • Apr 07
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from CL$714.8b to CL$745.3b. EPS estimate increased from CL$69.09 to CL$76.85 per share. Net income forecast to grow 13% next year vs 7.9% decline forecast for Water Utilities industry in Chile. Consensus price target broadly unchanged at CL$1,083. Share price rose 2.0% to CL$1,036 over the past week. New Risk • Mar 30
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 79% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (79% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 23
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: CL$68.11 (up from CL$60.54 in FY 2024). Revenue: CL$712.8b (up 7.6% from FY 2024). Net income: CL$68.1b (up 13% from FY 2024). Profit margin: 9.6% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.0%. Revenue is forecast to grow 2.1% p.a. on average during the next 2 years, while revenues in the Water Utilities industry in South America are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Feb 15
Price target increased by 10% to CL$1,060 Up from CL$960, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of CL$1,075. Stock is up 31% over the past year. The company posted earnings per share of CL$60.54 last year. Price Target Changed • Jan 28
Price target increased by 12% to CL$1,020 Up from CL$913, the current price target is an average from 4 analysts. New target price is 9.4% below last closing price of CL$1,126. Stock is up 51% over the past year. The company posted earnings per share of CL$60.54 last year. Upcoming Dividend • Nov 24
Upcoming dividend of CL$20.69 per share Eligible shareholders must have bought the stock before 01 December 2025. Payment date: 05 December 2025. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of Chilean dividend payers (7.2%). Higher than average of industry peers (3.1%). New Risk • Nov 20
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 78% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (78% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 15
Third quarter 2025 earnings released: EPS: CL$10.38 (vs CL$7.10 in 3Q 2024) Third quarter 2025 results: EPS: CL$10.38 (up from CL$7.10 in 3Q 2024). Revenue: CL$158.4b (up 11% from 3Q 2024). Net income: CL$10.4b (up 46% from 3Q 2024). Profit margin: 6.6% (up from 5.0% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 22
Second quarter 2025 earnings released: EPS: CL$11.69 (vs CL$10.12 in 2Q 2024) Second quarter 2025 results: EPS: CL$11.69 (up from CL$10.12 in 2Q 2024). Revenue: CL$165.0b (up 9.6% from 2Q 2024). Net income: CL$11.7b (up 16% from 2Q 2024). Profit margin: 7.1% (up from 6.7% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 16
First quarter 2025 earnings released: EPS: CL$25.09 (vs CL$27.11 in 1Q 2024) First quarter 2025 results: EPS: CL$25.09 (down from CL$27.11 in 1Q 2024). Revenue: CL$197.4b (up 4.4% from 1Q 2024). Net income: CL$25.1b (down 7.4% from 1Q 2024). Profit margin: 13% (down from 14% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Apr 13
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 78% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (78% net debt to equity). Dividend is not well covered by earnings (99% payout ratio). Price Target Changed • Mar 30
Price target decreased by 15% to CL$772 Down from CL$906, the current price target is an average from 4 analysts. New target price is 8.7% below last closing price of CL$845. Stock is up 15% over the past year. The company is forecast to post earnings per share of CL$84.34 for next year compared to CL$60.54 last year. Reported Earnings • Mar 28
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: CL$60.54 (down from CL$65.28 in FY 2023). Revenue: CL$662.7b (up 3.4% from FY 2023). Net income: CL$60.5b (down 7.3% from FY 2023). Profit margin: 9.1% (down from 10% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 29%. Revenue is forecast to grow 6.2% p.a. on average during the next 2 years, while revenues in the Water Utilities industry in South America are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jan 28
Price target increased by 13% to CL$858 Up from CL$762, the current price target is an average from 3 analysts. New target price is 15% above last closing price of CL$747. Stock is up 4.2% over the past year. The company is forecast to post earnings per share of CL$72.57 for next year compared to CL$65.28 last year. Upcoming Dividend • Jan 03
Upcoming dividend of CL$19.31 per share Eligible shareholders must have bought the stock before 10 January 2025. Payment date: 15 January 2025. Payout ratio is a comfortable 68% and the cash payout ratio is 98%. Trailing yield: 8.5%. Lower than top quartile of Chilean dividend payers (9.2%). Higher than average of industry peers (3.6%). New Risk • Nov 29
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 19% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (98% cash payout ratio). Reported Earnings • Nov 22
Third quarter 2024 earnings released: EPS: CL$7.10 (vs CL$10.47 in 3Q 2023) Third quarter 2024 results: EPS: CL$7.10 (down from CL$10.47 in 3Q 2023). Revenue: CL$143.4b (flat on 3Q 2023). Net income: CL$7.10b (down 32% from 3Q 2023). Profit margin: 5.0% (down from 7.4% in 3Q 2023). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Water Utilities industry in South America. Over the last 3 years on average, earnings per share has increased by 18% per year and the company’s share price has also increased by 18% per year. Price Target Changed • Sep 12
Price target decreased by 8.9% to CL$762 Down from CL$836, the current price target is an average from 2 analysts. New target price is 8.8% above last closing price of CL$700. Stock is up 2.4% over the past year. The company is forecast to post earnings per share of CL$63.01 for next year compared to CL$65.28 last year. Reported Earnings • Aug 25
Second quarter 2024 earnings released: EPS: CL$10.12 (vs CL$12.43 in 2Q 2023) Second quarter 2024 results: EPS: CL$10.12 (down from CL$12.43 in 2Q 2023). Revenue: CL$150.5b (down 1.9% from 2Q 2023). Net income: CL$10.1b (down 19% from 2Q 2023). Profit margin: 6.7% (down from 8.1% in 2Q 2023). Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Water Utilities industry in South America. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 16% per year. New Risk • Aug 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chilean stocks, typically moving 3.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (17% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 92% Cash payout ratio: 158% Minor Risk Share price has been volatile over the past 3 months (3.5% average weekly change). New Risk • Jun 09
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 17% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (17% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 92% Cash payout ratio: 158% Reported Earnings • May 26
First quarter 2024 earnings released: EPS: CL$27.11 (vs CL$24.10 in 1Q 2023) First quarter 2024 results: EPS: CL$27.11 (up from CL$24.10 in 1Q 2023). Revenue: CL$189.1b (up 5.3% from 1Q 2023). Net income: CL$27.1b (up 13% from 1Q 2023). Profit margin: 14% (in line with 1Q 2023). Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Water Utilities industry in South America. Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 22% per year. Upcoming Dividend • May 10
Upcoming dividend of CL$42.86 per share Eligible shareholders must have bought the stock before 17 May 2024. Payment date: 23 May 2024. Payout ratio is a comfortable 70% but the company is paying out more than the cash it is generating. Trailing yield: 5.8%. Lower than top quartile of Chilean dividend payers (10%). Higher than average of industry peers (3.5%). Price Target Changed • Apr 24
Price target increased by 7.3% to CL$897 Up from CL$836, the current price target is an average from 2 analysts. New target price is 25% above last closing price of CL$720. Stock is up 20% over the past year. The company is forecast to post earnings per share of CL$85.31 for next year compared to CL$65.28 last year. Reported Earnings • Mar 15
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CL$65.28 (up from CL$41.33 in FY 2022). Revenue: CL$640.9b (up 11% from FY 2022). Net income: CL$65.3b (up 58% from FY 2022). Profit margin: 10% (up from 7.2% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.6%. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 09
Upcoming dividend of CL$20.04 per share at 5.8% yield Eligible shareholders must have bought the stock before 15 December 2023. Payment date: 20 December 2023. Payout ratio is a comfortable 37% but the company is paying out more than the cash it is generating. Trailing yield: 5.8%. Lower than top quartile of Chilean dividend payers (12%). Higher than average of industry peers (3.0%). Reported Earnings • Nov 27
Third quarter 2023 earnings released: EPS: CL$10.47 (vs CL$4.87 in 3Q 2022) Third quarter 2023 results: EPS: CL$10.47 (up from CL$4.87 in 3Q 2022). Revenue: CL$142.1b (up 6.0% from 3Q 2022). Net income: CL$10.5b (up 115% from 3Q 2022). Profit margin: 7.4% (up from 3.6% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.8% p.a. on average during the next 2 years, compared to a 5.4% growth forecast for the Water Utilities industry in South America. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 6% per year. New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chilean stocks, typically moving 4.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (4.2% average weekly change). Reported Earnings • Aug 28
Second quarter 2023 earnings released: EPS: CL$12.43 (vs CL$4.72 in 2Q 2022) Second quarter 2023 results: EPS: CL$12.43 (up from CL$4.72 in 2Q 2022). Revenue: CL$153.4b (up 17% from 2Q 2022). Net income: CL$12.4b (up 163% from 2Q 2022). Profit margin: 8.1% (up from 3.6% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Global Water Utilities industry. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 3% per year. New Risk • Aug 27
New major risk - Revenue and earnings growth Earnings have declined by 14% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings have declined by 14% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. New Risk • Jun 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 19% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 30
First quarter 2023 earnings released: EPS: CL$24.10 (vs CL$16.66 in 1Q 2022) First quarter 2023 results: EPS: CL$24.10 (up from CL$16.66 in 1Q 2022). Revenue: CL$179.7b (up 20% from 1Q 2022). Net income: CL$24.1b (up 45% from 1Q 2022). Profit margin: 13% (up from 11% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.3% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Water Utilities industry in South America. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Apr 21
Upcoming dividend of CL$23.24 per share at 7.0% yield Eligible shareholders must have bought the stock before 28 April 2023. Payment date: 04 May 2023. Payout ratio and cash payout ratio are on the higher end at 99% and 100% respectively. Trailing yield: 7.0%. Lower than top quartile of Chilean dividend payers (13%). Higher than average of industry peers (3.9%). Reported Earnings • Mar 24
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: CL$41.33 (down from CL$48.99 in FY 2021). Revenue: CL$575.5b (up 14% from FY 2021). Net income: CL$41.3b (down 16% from FY 2021). Profit margin: 7.2% (down from 9.7% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 24%. Revenue is forecast to grow 4.5% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Water Utilities industry in South America. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Buying Opportunity • Dec 23
Now 20% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be CL$593, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last 3 years. Earnings per share has declined by 22%. Upcoming Dividend • Dec 09
Upcoming dividend of CL$17.54 per share Eligible shareholders must have bought the stock before 16 December 2022. Payment date: 21 December 2022. Payout ratio is a comfortable 56% but the company is paying out more than the cash it is generating. Trailing yield: 7.8%. Lower than top quartile of Chilean dividend payers (13%). Higher than average of industry peers (2.8%). Reported Earnings • Nov 27
Third quarter 2022 earnings released: EPS: CL$4.87 (vs CL$10.30 in 3Q 2021) Third quarter 2022 results: EPS: CL$4.87 (down from CL$10.30 in 3Q 2021). Revenue: CL$134.1b (up 19% from 3Q 2021). Net income: CL$4.87b (down 53% from 3Q 2021). Profit margin: 3.6% (down from 9.1% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.4% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Water Utilities industry in South America. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 5 highly experienced directors. Alternate Director Carlos Mladinic Alonso was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improved over the past week After last week's 15% share price gain to CL$450, the stock trades at a trailing P/E ratio of 10.8x. Average forward P/E is 11x in the Water Utilities industry in South America. Total loss to shareholders of 35% over the past three years. Reported Earnings • Sep 03
Second quarter 2022 earnings released: EPS: CL$4.72 (vs CL$9.80 in 2Q 2021) Second quarter 2022 results: EPS: CL$4.72 (down from CL$9.80 in 2Q 2021). Revenue: CL$130.9b (up 8.7% from 2Q 2021). Net income: CL$4.72b (down 52% from 2Q 2021). Profit margin: 3.6% (down from 8.1% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 3.5%, compared to a 2.7% growth forecast for the Water Utilities industry in Chile. Over the last 3 years on average, earnings per share has fallen by 20% per year whereas the company’s share price has fallen by 21% per year. Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improved over the past week After last week's 15% share price gain to CL$360, the stock trades at a trailing P/E ratio of 7.7x. Average forward P/E is 12x in the Water Utilities industry in South America. Total loss to shareholders of 55% over the past three years. Reported Earnings • May 28
First quarter 2022 earnings released: EPS: CL$16.66 (vs CL$18.85 in 1Q 2021) First quarter 2022 results: EPS: CL$16.66 (down from CL$18.85 in 1Q 2021). Revenue: CL$150.3b (up 10% from 1Q 2021). Net income: CL$16.7b (down 12% from 1Q 2021). Profit margin: 11% (down from 14% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 4.9% while the industry in Chile is not expected to grow. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Price Target Changed • Apr 27
Price target decreased to CL$643 Down from CL$894, the current price target is provided by 1 analyst. New target price is 86% above last closing price of CL$345. Stock is down 37% over the past year. The company posted earnings per share of CL$48.99 last year. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Luis Enrique Olivos was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Upcoming Dividend • Mar 21
Upcoming dividend of CL$20.49 per share Eligible shareholders must have bought the stock before 28 March 2022. Payment date: 01 April 2022. Payout ratio is a comfortable 71% but the company is paying out more than the cash it is generating. Trailing yield: 8.2%. Lower than top quartile of Chilean dividend payers (9.1%). Higher than average of industry peers (2.7%). Reported Earnings • Feb 17
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: CL$48.99 (up from CL$36.55 in FY 2020). Revenue: CL$506.5b (up 5.8% from FY 2020). Net income: CL$49.0b (up 34% from FY 2020). Profit margin: 9.7% (up from 7.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 5.8%, compared to a 1.5% growth forecast for the industry in Chile. Over the last 3 years on average, earnings per share has fallen by 21% per year whereas the company’s share price has fallen by 26% per year. Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment improved over the past week After last week's 15% share price gain to CL$460, the stock trades at a trailing P/E ratio of 10.8x. Average forward P/E is 13x in the Water Utilities industry in South America. Total loss to shareholders of 43% over the past three years. Reported Earnings • Dec 01
Third quarter 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2021 results: EPS: CL$10.30 (up from CL$6.63 in 3Q 2020). Revenue: CL$112.7b (up 6.9% from 3Q 2020). Net income: CL$10.3b (up 55% from 3Q 2020). Profit margin: 9.1% (up from 6.3% in 3Q 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.1%. Earnings per share (EPS) exceeded analyst estimates by 36%. Earnings per share (EPS) surpassed analyst estimates by 36%. Over the next year, revenue is forecast to grow 5.9%, compared to a 1.1% growth forecast for the industry in Chile. Over the last 3 years on average, earnings per share has fallen by 21% per year whereas the company’s share price has fallen by 23% per year. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improved over the past week After last week's 19% share price gain to CL$430, the stock trades at a trailing P/E ratio of 11x. Average forward P/E is 14x in the Water Utilities industry in South America. Total loss to shareholders of 44% over the past three years. Upcoming Dividend • Nov 02
Upcoming dividend of CL$20.04 per share Eligible shareholders must have bought the stock before 08 November 2021. Payment date: 11 November 2021. Trailing yield: 11%. Within top quartile of Chilean dividend payers (9.3%). Higher than average of industry peers (3.4%). Price Target Changed • Aug 29
Price target decreased to CL$733 Down from CL$894, the current price target is provided by 1 analyst. New target price is 60% above last closing price of CL$459. Stock is down 26% over the past year. Reported Earnings • May 29
First quarter 2021 earnings released: EPS CL$18.85 (vs CL$22.74 in 1Q 2020) The company reported a poor first quarter result with weaker earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: CL$136.5b (down 13% from 1Q 2020). Net income: CL$18.8b (down 17% from 1Q 2020). Profit margin: 14% (in line with 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorated over the past week After last week's 22% share price decline to CL$416, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Water Utilities industry globally. Total loss to shareholders of 55% over the past three years. Upcoming Dividend • May 11
Upcoming dividend of CL$32.28 per share Eligible shareholders must have bought the stock before 18 May 2021. Payment date: 24 May 2021. Trailing yield: 9.8%. Within top quartile of Chilean dividend payers (5.4%). Higher than average of industry peers (3.0%). Reported Earnings • Mar 28
Full year 2020 earnings released: EPS CL$36.55 (vs CL$72.89 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: CL$478.8b (down 1.1% from FY 2019). Net income: CL$36.6b (down 50% from FY 2019). Profit margin: 7.6% (down from 15% in FY 2019). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 21% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Feb 19
New 90-day low: CL$557 The company is down 2.0% from its price of CL$568 on 20 November 2020. The Chilean market is up 11% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Water Utilities industry, which is down 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CL$3,984 per share. Price Target Changed • Feb 06
Price target lowered to CL$830 Down from CL$894, the current price target is an average from 3 analysts. The new target price is 46% above the current share price of CL$567. As of last close, the stock is down 26% over the past year. Reported Earnings • Nov 28
Third quarter 2020 earnings released: EPS CL$6.63 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: CL$105.4b (down 13% from 3Q 2019). Net income: CL$6.63b (down 29% from 3Q 2019). Profit margin: 6.3% (down from 7.8% in 3Q 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Oct 27
New 90-day low: CL$545 The company is down 19% from its price of CL$675 on 29 July 2020. The Chilean market is down 7.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Water Utilities industry, which is down 20% over the same period. Is New 90 Day High Low • Oct 07
New 90-day low: CL$563 The company is down 22% from its price of CL$717 on 09 July 2020. The Chilean market is down 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Water Utilities industry, which is down 21% over the same period.