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4-Star Stocks Poised to Pop: Endesa Chile

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, National Electricity Company of Chile (Endesa Chile) (NYSE: EOC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Endesa Chile's business and see what CAPS investors are saying about the stock right now.

Endesa Chile facts

Headquarters (Founded) Santiago, Chile (1943)
Market Cap $12.1 billion
Industry Foreign utilities
Trailing-12-Month Revenue $4.5 billion
Management CEO Joaquin Galindo Velez (since 2009)
CFO Eduardo Escaffi (since 2009)
Return on Equity (Average, Past 3 Years) 20.9%
Cash/Debt $539.2 million / $4.0 billion
Dividend Yield 4.2%
Competitors AES (NYSE: AES  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 110 members who have rated Endesa Chile believe the stock will outperform the S&P 500 going forward. These bulls include DELMCC99 and TarynOne.

Earlier this year, DELMCC99 tapped Endesa Chile as great way to play defense: "Stock has shown good sales and earnings growth over the past five years. Last downturn in 2008 it only had a -8% return compared to -37% for the S&P."

Endesa Chile even boasts a robust three-year average operating margin of 37.4%. That's higher than that of other utility plays like AES (21.4%), Duke Energy (NYSE: DUK  ) (21.5%), and Southern (NYSE: SO  ) (22.3%).

CAPS member TarynOne expands on the outperform argument:

There is a lot of development to be had in Chile. Although [Endesa Chile] does face vulnerability to dry weather spouts, (primary power source is hydropower), it will continue to have construction & expansion projects as more and more Chilean communities are only now receiving access to electricity.

What do you think about Endesa Chile, 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!

Interested in another easy way to track Endesa Chile? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Southern. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:05 PM
EOC $47.89 Up +0.13 +0.27%
Empresa Nacional d… CAPS Rating: ****
SO $45.69 Up +0.09 +0.20%
Southern Company CAPS Rating: *****
DUK $21.96 Up +0.16 +0.73%
Duke Energy Corp CAPS Rating: ****
AES $12.55 Up +0.17 +1.37%
The AES Corp CAPS Rating: ****

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