Enel S.p.A. : Watch out the exit from bearish channel
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09/03/2012 | 04:21am
Opinion : Bullish above 2.7 EUR
Target price : 3.12 EUR Potential: 19.08%
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ITALIAN STOCK EXCHANGE
Utilities - Electric |
Enel S.p.A. generates, transmits, distributes, and trades electricity. The Company operates hydroelectric, geothermal, and other generating plants. Enel, through subsidiaries, also provides fixed-line and mobile telephone services, installs public lighting systems, and operates real estate, factoring, insurance, telecommunications, and Internet service provider businesses.
From a fundamental viewpoint, the enterprise value is 0.91 times its sales according to Thomson Reuters and the company is undervalued compared to its peers. Even if analysts have not revised upward their estimates, they forecast an EPS of EUR 0.37 EUR. The weak point is the situation of debt, the leverage is estimated at 2.72x.
Technically the share is bullish trend on the short term. Moving averages are well oriented, especially the 20 day moving average. In weekly data the stock is trading in bearish channel, and is testing the upper band of this channel. The break out of this level could give a good point of entry and open new scenarios. We suggest a long position at EUR 2.70, in this case we forecast a return on EUR 3.12 level filling the bearish gap.
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Valuation |
2013e |
2014e |
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PER (Price / EPS)
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8,96x |
8,69x |
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Capitalization / Revenue
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0,34x |
0,34x |
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EV / Revenue
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0,85x |
0,80x |
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EV / EBITDA
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4,32x |
4,06x |
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Yield (DPS / Price)
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4,60% |
4,64% |
| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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11,9% |
11,7% |
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operating laverage (Delta EBIT / Delta Sales)
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-4,64x |
- |
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Net Margin (Net Profit / Revenue)
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3,81% |
3,88% |
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ROA (Net Profit / Asset)
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3,23% |
4,10% |
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ROE (Net Profit / Equities)
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7,67% |
7,67% |
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Rate of Dividend
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41,2% |
40,4% |
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