Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American electricity giant Enersis (NYSE: ENI ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Enersis' business and see what CAPS investors are saying about the stock right now.
Enersis facts
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Headquarters (founded)
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Santiago, Chile (1889)
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Market Cap
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$15.7 billion
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Industry
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Electric utilities
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Trailing-12-Month Revenue
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$12.82 billion
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Management
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CEO Ignacio Alvear (since 2006)
CFO Alfredo Segal (since 2003)
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Return on Capital (Average, Past 3 Years)
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10.5%
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Cash/Debt
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$1.55 billion / $7.65 billion
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Dividend Yield
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1.4%
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Competitors
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AES (NYSE: AES )
Duke Energy (NYSE: DUK )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 288 members who have rated Enersis believe the stock will outperform the S&P 500 going forward. These bulls include 2win2 and All-Star Staka, who is ranked in the top 2% of our community.
A couple of months ago , 2win2 tapped Enersis as a particularly strong selection: "[S]trong company, strong sector, strong countries, BRAZIL & CHILE."
Enersis' exposure to highly regulated, fast-growing South American markets, diversified mix of assets, and low-cost edge support its five-star CAPS rating. Enersis even sports a higher three-year average return on capital (10.5%) than listed rivals AES (7.4%) and Duke (4.5%), as well as other utility plays like American Electric Power (NYSE: AEP ) (5.9%), Constellation Energy (NYSE: CEG ) (5.4%), and Progress Energy (NYSE: PGN ) (5.5%).
CAPS All-Star Staka weighs Enersis' pros and cons:
Positive:
- Big, defensive, good dividend.
- Good diversification over multiple industries.
- Strong growth over past 5 years.
- Chile is one of the more stable South American countries.
Negative:
- No longer cheap.
- Chart a little bit extended.
What do you think about Enersis, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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