| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | -100 |
| Intrinsic value (DCF) | 1.41 | -68 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Enel Chile S.A. (NYSE: ENIC) is a leading electricity utility company operating in Chile, specializing in the generation, transmission, and distribution of electricity. As a subsidiary of Italy-based Enel S.p.A., the company leverages a diversified energy portfolio, including hydroelectric, thermal, wind, solar, and geothermal power plants, with a gross installed capacity of 8,054 MW. Enel Chile serves approximately 2.0 million customers across 33 municipalities in the Santiago metropolitan region, supported by 2,105 square kilometers of transmission lines. The company also engages in natural gas sales, transportation, and engineering services, catering to residential, commercial, industrial, and governmental clients. Positioned in the regulated electric utilities sector, Enel Chile plays a critical role in Chile's energy transition toward renewable sources, benefiting from strong regulatory frameworks and growing demand for sustainable energy solutions. With a market capitalization of over $5 billion, Enel Chile remains a key player in Latin America's energy market.
Enel Chile presents a stable investment opportunity within the regulated utilities sector, supported by its diversified energy mix and strong parent company backing (Enel S.p.A.). The company's focus on renewables aligns with global decarbonization trends, reducing long-term regulatory risks. However, exposure to volatile energy prices, high debt levels (~$3.9 billion), and geopolitical risks in Chile could pressure margins. The stock's low beta (0.486) suggests defensive characteristics, while a modest dividend yield (~0.2%) may appeal to income-focused investors. Investors should monitor Chile's energy policy shifts and Enel's capex efficiency (negative $684M in 2021) in balancing growth and profitability.
Enel Chile's competitive advantage stems from its diversified generation assets (43% hydro, 30% thermal, 27% renewables as of 2021) and integrated operations covering the full electricity value chain. Its affiliation with Enel S.p.A. provides access to global expertise and financing, enabling larger-scale renewable projects than local peers. The company's 20% market share in Chile's distribution segment creates stable cash flows, while its transmission infrastructure is difficult for new entrants to replicate. However, competition is intensifying as Chile liberalizes its energy market, with independent power producers (IPPs) like Colbún and AES Andes aggressively expanding renewables. Enel Chile's scale allows cost advantages in procurement and maintenance, but its reliance on regulated returns limits pricing flexibility compared to unregulated competitors. The company's early-mover position in solar (e.g., Cerro Pabellón geothermal plant) differentiates its renewable portfolio, though project execution risks persist given Chile's complex permitting environment.