ENEL IM

Enel SpA

Energy


Presented:04/13/2015
Price:€4.46
Cap:$45.10B
Current Price:€7.21
Cap:$81.55B

Presented

Date04/13/2015
Price€4.46
Market Cap$45.10B
Ent Value$113.04B
P/E Ratio89x
Book Value€2.35
Div Yield3.14%
Shares O/S9,403.36M
Ave Daily Vol52,760,000
Short IntN/A

Current

Price€7.21
Market Cap$81.55B
Enel SpA, together with its subsidiaries, produces, distributes, and sells electricity and gas primarily in Europe, Latin America, and North America. The company supplies electricity and gas to free and regulated market customers. It operates various hydroelectric, thermoelectric, nuclear, geothermal, wind, photovoltaic, biomass, and co-generation power plants with an installed capacity of approximately 98 gigawatts; and has interests in the Isarene and South East Illizi fields in Algeria, and the Longanesi field in Italy. The company has approximately 18 million barrels of oil equivalent of proven reserves; and 46 million barrels of oil equivalent of proven and probable reserves. It serves approximately 61 million power and gas customers in 40 countries. The company was founded in 1962 and is based in Rome, Italy.

Publicly traded companies mentioned herein: Endesa SA (ELE SM), Enel SpA (ENEL IM), Enel Green Power SpA (EGPW IM)

Highlights

The presenter is long shares of Enel SpA (ENEL) and sees a favorable risk/ reward with shares trading at ~4.50 euros. He likes the backdrop in Europe at this time, as QE should benefit dividend paying companies similar to the experience in Japan and the US. In addition, he likes ENEL’s new Chief Executive Officer, Francesco Starace, and stressed that his mandate is to transform the Italian power transmission, distribution and renewable energy company into a dividend growth story. In what he characterized as “a truly unique opportunity” he sees the potential for the dividend, and stock price, to double over the next 3 - 4 years.

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Idea Discussion

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