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Enel Chile SA (ENIC)
NYSE:ENIC
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Enel Chile SA
(NYSE:ENIC)
68Neutral
Enel Chile SA (ENIC) vs. S&P 500 (SPY)
Market Cap
$4.45B
Dividend Yield6.99%
Average Volume (3M)809.45K
Price to Earnings (P/E)28.8
Beta (1Y)0.62
Revenue Growth-17.27%
EPS Growth-77.67%
CountryUS
Employees1,952
SectorUtilities
Sector Strength89
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.12
Shares Outstanding1,383,331,200
10 Day Avg. Volume901,482
30 Day Avg. Volume809,447
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.95
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.90Price Target Upside21.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
Enel Chile SA Business Overview & Revenue Model
Company DescriptionEnel Chile SA (ENIC) is a leading Chilean energy company primarily engaged in the generation, distribution, and supply of electricity. Operating as a subsidiary of the Enel Group, Enel Chile focuses on both traditional and renewable energy sources, aiming to drive the transition to more sustainable energy solutions. The company's core services include the production and sale of electricity to residential, commercial, and industrial clients across Chile, leveraging its extensive portfolio of hydroelectric, wind, solar, and geothermal power plants.
How the Company Makes MoneyEnel Chile makes money through the generation and sale of electricity to various customer segments, including residential, commercial, and industrial users. The company operates a diverse mix of energy generation facilities, including hydroelectric, wind, solar, and thermal plants, allowing it to capitalize on both traditional and renewable energy markets. Revenue is primarily generated from electricity sales, which are often conducted through long-term power purchase agreements (PPAs) that provide stable and predictable cash flows. Additionally, the company benefits from government incentives and regulatory frameworks that support renewable energy projects, contributing to its earnings. Enel Chile's strategic partnerships, technological innovations, and investments in renewable energy infrastructure further bolster its revenue generation capabilities.
Enel Chile SA Financial Statement Overview
Summary
Enel Chile SA is experiencing declining revenue and profit margins, with increasing leverage posing potential risks. The company remains profitable and generates strong operating cash flow, but the volatility in free cash flow requires attention. Overall, the financial health is moderate, with both strengths in equity management and weaknesses in revenue and margin decline.Income Statement
Enel Chile SA shows a declining revenue trend with the revenue dropping from 2022 to 2023 and continuing to 2024. Gross and net profit margins have decreased over time, indicating shrinking profitability. The EBIT and EBITDA margins have also contracted from 2022 to 2023, and further to 2024, reflecting operating challenges. Despite these pressures, the company remains profitable, but the declining trend poses a concern for future profitability.65
Positive
Balance Sheet
The company's debt-to-equity ratio has risen, indicating increased leverage, which could heighten financial risk. However, the equity ratio is relatively stable, suggesting adequate equity financing. Return on Equity (ROE) has decreased, reflecting reduced profitability on shareholder equity. The balance sheet shows strength in asset management but highlights potential risks in increasing debt levels.72
Positive
Cash Flow
Operating cash flow remains strong, but the free cash flow growth rate has been inconsistent, with a significant decline in 2024. The operating cash flow to net income ratio indicates strong cash generation relative to profits. However, the free cash flow to net income ratio reveals volatility, suggesting challenges in maintaining free cash flow amidst fluctuating capital expenditures.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.94T | 4.26T | 4.96T | 2.83T | 2.55T | Gross Profit |
| 1.01T | 1.26T | 1.56T | 818.38B | 1.17T | EBIT |
| 373.06B | 767.76B | 912.36B | 259.59B | -34.26B | EBITDA |
| 630.41B | 1.32T | 2.14T | 416.44B | 207.59B | Net Income Common Stockholders |
| 145.11B | 633.46B | 1.25T | 85.15B | -50.86B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 394.33B | 572.97B | 875.50B | 310.22B | 332.97B | Total Assets |
| 12.72T | 11.83T | 11.87T | 9.50T | 7.90T | Total Debt |
| 3.91T | 2.71T | 2.43T | 2.10T | 1.67T | Net Debt |
| 3.52T | 2.14T | 1.55T | 1.79T | 1.34T | Total Liabilities |
| 7.39T | 7.07T | 7.48T | 6.15T | 4.31T | Stockholders Equity |
| 4.96T | 4.45T | 4.10T | 3.10T | 3.35T |
| Cash Flow | Free Cash Flow | |||
| 846.90B | 43.24B | -192.78B | -373.18B | 201.55B | Operating Cash Flow |
| 1.53T | 705.66B | 744.78B | 412.89B | 755.87B | Investing Cash Flow |
| -696.10B | -86.24B | 455.57B | -736.55B | -554.65B | Financing Cash Flow |
| -1.03T | -934.24B | -628.66B | 293.23B | -127.67B |
Enel Chile SA Technical Analysis
Positive
3.22
Price Trends
3.30
Negative
3.08
Positive
2.90
Positive
Market Momentum
-0.04
Negative
49.66
Neutral
83.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENIC, the sentiment is Positive. The current price of 3.22 is below the 20-day moving average (MA) of 3.23, below the 50-day MA of 3.30, and above the 200-day MA of 2.90, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 83.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENIC.
Enel Chile SA Risk Analysis
Enel Chile SA disclosed 27 risk factors in its most recent earnings report. Enel Chile SA reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enel Chile SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.87B | 19.67 | 9.89% | 2.94% | 1.65% | 162.78% | |
74 Outperform | $6.44B | 21.47 | 9.27% | 2.86% | 3.48% | 6.67% | |
74 Outperform | $4.71B | 14.31 | 8.80% | 4.64% | 15.67% | 29.07% | |
68 Neutral | $4.45B | 28.80 | 3.23% | 6.99% | -17.27% | -77.67% | |
63 Neutral | $1.76B | 31.15 | 3.52% | 3.15% | -14.28% | -85.93% | |
63 Neutral | $9.19B | 11.97 | 6.86% | 4.40% | 4.23% | -11.24% | |
62 Neutral | $1.59B | 5.40 | 27.25% | ― | -0.20% | ― |
* Utilities Sector Average
Performance Comparison
ENIC
Enel Chile SA
3.22
0.51
18.82%
EDN
Edenor SA
33.66
17.52
108.55%
IDA
IdaCorp
119.29
28.40
31.25%
TXNM
TXNM Energy
53.40
18.14
51.45%
POR
Portland GE
43.08
2.17
5.30%
CEPU
Central Puerto SA
11.35
2.45
27.53%
Enel Chile SA Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -6.67% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook with significant achievements in hydro generation and renewable expansion offset by challenges from climate events and regulatory issues. Despite these challenges, the company maintained its financial guidance, showcasing strategic resilience.Highlights
Strong Hydro Generation Increase
Hydro generation increased by 12% compared to last year, contributing significantly to the company's performance, thanks to favorable weather conditions and strategic reservoir management.
Successful Renewable Expansion
Enel Chile successfully added 693 MW of new capacity, including 385 MW of solar, 202 MW of battery storage, and 106 MW of wind, bringing total capacity to 8.9 GW with nearly 80% from renewable sources.
Adjusted EBITDA and Net Income in Line with Guidance
Despite non-cash impacts, adjusted EBITDA and net income results were fully in line with 2024 guidance, demonstrating confidence in strategic planning.
Decrease in Gross Debt
Gross debt decreased by 11% to $3.9 billion by December 2024, supported by operational cash generation and effective cash use from PEC 3 factoring.
Lowlights
Impact of August Climate Event
The extraordinary weather event in August caused extensive damage, resulting in a $20 million fine and $80 million voluntary compensation for disrupted services.
Regulatory and Legal Challenges
Ongoing legal challenges with the Superintendencia de Electricidad y Combustibles regarding force majeure claims, with potential financial implications yet to be resolved.
Functional Currency Change Impact
The change in functional currency led to a non-cash impact of $657 million at the EBITDA level, affecting financial reporting.
Negative Impact from Extreme Weather on Grids
The extreme weather events resulted in a $62 million impact on grid operations, including fines and voluntary compensations.
Company Guidance
During the Enel Chile Full Year and Fourth Quarter 2024 Results Conference Call, guidance was provided by CEO Giuseppe Turchiarelli on several key metrics. The company's hydro generation increased by 12% year-over-year, attributed to favorable hydrological conditions and the completion of the Los Condores hydro power project. Despite a non-cash impact of $657 million at the EBITDA level due to a change in functional currency, the adjusted EBITDA aligned with the 2024 guidance. Enel Chile's net electricity generation reached 24.6 terawatt hours, a 2% increase from 2023, with energy sales rising 8% to 33.4 terawatt hours. Additionally, the company expects to execute a $250 million PEC factoring in 2025. Enel Chile's renewable portfolio grew, with the addition of 404 megawatts of capacity, bringing the total to 8.9 gigawatts, of which nearly 80% is renewable and battery energy storage systems (BESS). The company also confirmed its 2025 guidance and highlighted a strategic focus on battery storage and regulatory framework improvements.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.