Enel Chile S.A. American Depositary Shares (Each representing 50 shares of Common Stock) (ENIC)

FairStock Score: 83/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $451 million in annual free cash flow (7.2% yield on market cap)
• Solid return on equity of 10.7% above cost of capital
• Superior net profit margin of 3566.6% indicating pricing power and operational efficiency
• Revenue growth of 1961.4% demonstrates strong top-line momentum
• FairStock composite score of 83/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($1) with negative 478% margin of safety—limited downside protection
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Enel Chile S.A. American Depositary Shares (Each representing 50 shares of Common Stock) is a small-cap utilities company valued at $6.2 billion. The business generates $4.5 billion in annual revenue with a 3566.6% net margin and $451 million in free cash flow. From a quality standpoint, Enel shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is attractively valued at 11.6x earnings, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 1961.4% and profit growth of 158.2%. The 1.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 83/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Enel's 1961% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. With $451 million in annual free cash flow (7.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer