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 respected four-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
| Headquarters (Founded) |
Santiago, Chile (1889) |
| Market Cap |
$14.2 billion |
| Industry |
Electric utilities |
| Trailing-12-Month Revenue |
$14.07 billion |
| Management |
CEO Ignacio Alvear (since 2006)
CFO Alfredo Ergas Segal (since 2003) |
| Return on Equity (Average, Past 3 Years) |
20.5% |
| Cash / Debt |
$2.15 billion / $7.76 billion |
| Dividend Yield |
3.6% |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 297 members who have rated Enersis believe the stock will outperform the S&P 500 going forward. These bulls include miffls and ashah915.
A few months ago, miffls tapped Enersis as an enticing income opportunity: "Growth in South American region plus the huge dividend should boost this stock regardless of many market conditions."
Currently, Enersis even sports a particularly paltry price-to-cash flow of 3.6. That represents a discount to U.S. utility counterparts like AEP (NYSE: AEP ) (5.3), Duke Energy (NYSE: DUK ) (5.7), and Southern (NYSE: SO ) (8.0).
CAPS member ashah915 elaborates on the Enersis bull case:
This company shows a promising future. Its gross and net margins are outstanding. They provide electricity and other things to developing economies like Peru and Brazil. Demand in those countries has been increasing tremendously and won't slow down for at least a couple of years, based on market predictions. ... This company has a lot of potential and I see it going very far.
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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